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December 15, 2021

More than 1 Lakh Companies Formed this year and 13k Companies removed by ROC

by CA Shivam Jaiswal in Corporate Law, MCA Circular

More than 1 Lakh Companies Formed this year and 13k Companies removed by ROC

‘Make in India’, is an initiative launched on 25th September 2014, a major national programme of the Government of India designed to facilitate investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha today.

The Minister further stated that the number of companies incorporated after the announcement of ‘Make in India’ programme are as under: –

PeriodNo. of companies incorporated
25.09.2014 to 31.03.20217,30,013
01.04.2021 to 01.12.20211,12,697

Giving more details, the Minister stated that there are 6,69,819 number of Companies having Active status out of the 7,30,013 new companies incorporated during the period 25.09.2014 to 31.03.2021 and 1,12,207 companies are having Active status out of the 1,12,697 new companies incorporated during the period 01.04.2021 to 01.12.2021.

The Minister stated that development of a robust manufacturing sector continues to be a key priority of the Government. It was one of the unique ‘Vocal for Local’ initiatives that promoted India’s manufacturing domain to the world. ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship, the Minister added.

The removal of name of companies from the Registrar of Companies is a continuous process. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha today.

The Minister stated that companies can also apply for removing the name of the company u/s 248(2) of the Act, which is an online application. Inactive company is defined in Explanation in (i) to sec 455(1) of the Act, whereby the companies can obtain the status of a Dormant Company, the Minister added.

Giving more details of such companies, the Minister stated as under:

YearNo. of companies removed from the Register of Companies under section 248(1) and 248(2) of the Act.No. of Dormant     Companies
2019-202,93348
2020-2112,89219

In response to a question on inactive and “Shell Companies”, the Minister stated that there is no definition of the term “Shell Company” in the Companies Act, 2013 (the Act). However, the Minister stated that pursuant to the provisions of section 248 (1) of the Act where the Registrar has reasonable cause to believe that the companies that are not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455, shall, after following the due process of law, remove the name of those companies from the Register of Companies.

The Minister also stated that there is no Scheme called Saral Nikas Yojana by the Government.

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