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More than 36% of registered companies have 'closed' down in India
More than 36 per cent (680,000) of registered companies in India have “closed” down as per the latest numbers provided by the ministry of corporate affairs (MCA) in Parliament. There are around 1.9 million companies registered with the government, the data shows.
While the percentage has moved up only marginally since 2017-18, it is a big jump from the 20 per cent share that closed companies occupied in earlier periods.
The reason for the jump is the inclusion of companies not filing financial statements or annual returns for two years into the category of “closed” companies. The government identified such companies and declared them defunct under the Companies (Removal of Names of Companies from the Register of Companies) Rules (along with amended Rules 2019), coined under Section 248(1) of the Companies Act, 2013.
Maharashtra and Delhi lead the pack of states in terms of absolute number, with 142,425 and 125,937 closed companies, respectively. This data was presented by Finance Minister Nirmala Sitharaman in a reply to a question in Parliament earlier this month.
Four states — Maharashtra, Delhi, Tamil Nadu, and West Bengal — constitute more than half the universe of registered companies. However, their shares of closed companies differ.
After the re-categorisation of non-compliant companies as “closed”, the share of closed companies in Maharashtra rose from nearly 15 per cent to 38 per cent. In Tamil Nadu, it rose from 24 per cent at the end of 2016-17 to 44 per cent in May 2019. The share of closed companies moved the slowest in West Bengal.
Apart from “closed” companies, the share of dormant companies, those under liquidation, and under the process of strike-off form less than 3 per cent of the universe.
Further, the MCA removed the names of nearly 220,000 and 110,000 companies from the list of registered companies in 2017-18 and 2018-19, respectively. These “shell” companies now cease to be part of the universe of registered corporates.
More than 36% of registered companies have 'closed' down in India
More than 36 per cent (680,000) of registered companies in India have “closed” down as per the latest numbers provided by the ministry of corporate affairs (MCA) in Parliament. There are around 1.9 million companies registered with the government, the data shows.
While the percentage has moved up only marginally since 2017-18, it is a big jump from the 20 per cent share that closed companies occupied in earlier periods.
The reason for the jump is the inclusion of companies not filing financial statements or annual returns for two years into the category of “closed” companies. The government identified such companies and declared them defunct under the Companies (Removal of Names of Companies from the Register of Companies) Rules (along with amended Rules 2019), coined under Section 248(1) of the Companies Act, 2013.
Maharashtra and Delhi lead the pack of states in terms of absolute number, with 142,425 and 125,937 closed companies, respectively. This data was presented by Finance Minister Nirmala Sitharaman in a reply to a question in Parliament earlier this month.
Four states — Maharashtra, Delhi, Tamil Nadu, and West Bengal — constitute more than half the universe of registered companies. However, their shares of closed companies differ.
After the re-categorisation of non-compliant companies as “closed”, the share of closed companies in Maharashtra rose from nearly 15 per cent to 38 per cent. In Tamil Nadu, it rose from 24 per cent at the end of 2016-17 to 44 per cent in May 2019. The share of closed companies moved the slowest in West Bengal.
Apart from “closed” companies, the share of dormant companies, those under liquidation, and under the process of strike-off form less than 3 per cent of the universe.
Further, the MCA removed the names of nearly 220,000 and 110,000 companies from the list of registered companies in 2017-18 and 2018-19, respectively. These “shell” companies now cease to be part of the universe of registered corporates.
More than 36% of registered companies have 'closed' down in India
Business Standard (@bsindia) Tweeted:
#IndianRailways is set to get 700 MHz spectrum for signalling and WiFi services, but the #Centre is not happy to give it for free
"Why should govt lose out on revenue?" said a #telecom official
@manchandamegha @shinejac
Railways, DoT on different bandwidth over 700 Mhz spectrum allotment ( )
#IndianRailways is set to get 700 MHz spectrum for signalling and WiFi services, but the #Centre is not happy to give it for free
"Why should govt lose out on revenue?" said a #telecom official
@manchandamegha @shinejac
Railways, DoT on different bandwidth over 700 Mhz spectrum allotment ( )
EconomicTimes (@EconomicTimes) Tweeted:
A businessman’s story that’s so much more than a business story The VG Siddhartha mystery: A businessman’s story that’s so much more than a business story ( )
A businessman’s story that’s so much more than a business story The VG Siddhartha mystery: A businessman’s story that’s so much more than a business story ( )
Business Standard (@bsindia) Tweeted:
While Chidambaram is alleged to have framed policies supporting another commodity exchange, the two IAS officers are said to have helped create regulations beyond their jurisdiction to hurt FTIL
Bombay HC summons Chidambaram, two IAS officers in FTIL defamation case ( )
While Chidambaram is alleged to have framed policies supporting another commodity exchange, the two IAS officers are said to have helped create regulations beyond their jurisdiction to hurt FTIL
Bombay HC summons Chidambaram, two IAS officers in FTIL defamation case ( )
Taklu has an agenda but he also raises valid points. Auto industry is in the dumps, stock market is at a low, economic growth is negative, FII's fleeing India, budget was lacklustre . Is he being alarmist or are we on the cusp of a recession?
@Nilgiri ; @BlackOpsIndia ; @RATHORE ; @Bali78 ; @Milspec ; @randomradio ; @Falcon ; @vstol Jockey
Lol. In what world asking to use Indian currency for domestic audience is nationalism
I actually like lot of Shekhar Gupta analysis (yes I take with cognisance of his bias/agenda as needed too).
We will have to let this year play out, he is being bit too alarmist. FPI/FII volatility is to be expected in current climate...I wouldn't say they are exactly fleeing...and likely will return in droves once this current cycle (of NPA recovery, lower rural demand, formalisation jitters etc..with a somewhat connected feedback loop) is over given overall world climate is definitely cooling down overall and stays that way for a while (India is simply at an inflection point like no other country that is highly attractive). The timidity of policy (esp after sustained MPC overprediction of inflation) in last year leading up to election has also combined on top of this somewhat.
Govt after all has seen no reason to tinker with the SEBI regulations in the FPI and bond market just yet....even after RBI swapped significant USD for INR from the banks. It means there is an underlying structural force waiting to spring...govt will likely take a decision on it (regarding best policy for it to materialise) after calibrating to overall monsoon results and any oil price+trade war movements.
FM has even said the 25% corporate tax rate could be extended to all companies soon (not just those below some revenue size)...that kind of thing simply is not done if govt is not confident of some upcoming numbers.
But let's see.
A recession is over due and it's required to clean up the rot. Stock market is still not low;it's still less than 10% down from the peak. In 2009, Sensex fell from 22000 to 8000. Auto market is certainly in pathetic condition. But IT industry is doing pretty good. So overall economic condition is complicated and will take a while to stabilize.
Only IT companies are good bhai Employees are not. Before 2014 below 10% hike was considered as under performing. Today even top performing guys are not getting 8%. Automation is taking place of a lot of employees and each year 1000s of experienced professional are losing their jobs.
Agreed. But that’s the ruthless world we live in. Unless we update our skill set regularly we will loose our jobs. Unfortunately most people became complacent after becoming managers and completely missed out the writing on the wall. Most of these people are going to loose their jobs over next few years unless they acquire new skill sets.
Old grudge with Modi, some 1st Vibrant Gujarat Summit long. You only shared that caravan article I guess, profile of Modi detailing the incident, before 2014 elections.
India GDP Growth: India May Be In The Midst Of A Structural Slowdown, Warns Kotak’s Sanjeev Prasad
Read what you said and what I replied. Proper context matter.
Decide yourself if its alarmist to say a storm is coming!
US China trade war , inability to attract trade war affected companies , global slowdown in demand , JNU commie FM , volatile policies like that of EV ,BS6 etc probable reasons
Business Standard (@bsindia) Tweeted:
Bharti Airtel reports Q1 consolidated net loss of Rs 2,866 crore
Bharti Airtel reports Q1 consolidated net loss of Rs 2,866 crore ( )
Bharti Airtel reports Q1 consolidated net loss of Rs 2,866 crore
Bharti Airtel reports Q1 consolidated net loss of Rs 2,866 crore ( )
ET RISE (@ET_RISE) Tweeted:
Trade tensions between the US and China have given India an opportunity to ramp up #exports to both countries. India is only major Asian economy that’s growing its export share during trade war ( )
Livemint (@livemint) Tweeted:
Maruti Suzuki reported its worst drop in domestic sales in 18 years. The company's June quarter sales dropped 19%. It was the worst reported since 2001-01 Livemint on Twitter ( )
India Today (@IndiaToday) Tweeted:
The action is being seen in the backdrop of charges of alleged financial irregularities against the two brothers.
Enforcement Directorate raids former Ranbaxy group promoters ( )
Business Standard (@bsindia) Tweeted:
#UttarPradesh sets August 31 deadline for mills to settle farmers' Rs 8,200 crore sugarcane arrears, writes @virendrajourno
UP sets August 31 deadline for mills to settle Rs 8,200 crore cane arrears ( )
Forbes India (@forbes_india) Tweeted:
Worldwide trends show that declining car sales are not restricted to a particular country—and worryingly, they're here to stay: Auto slowdown takes global turn | Forbes India | By @sarda_pranit
#ElectricCars Forbes India on Twitter ( )
EconomicTimes (@EconomicTimes) Tweeted:
This debt of Rs 3,537 crore is over the Rs 6,547 crore Coffee Day Enterprises had Holding companies of VG Siddhartha had Rs 3,500cr debt
Trade tensions between the US and China have given India an opportunity to ramp up #exports to both countries. India is only major Asian economy that’s growing its export share during trade war ( )
Livemint (@livemint) Tweeted:
Maruti Suzuki reported its worst drop in domestic sales in 18 years. The company's June quarter sales dropped 19%. It was the worst reported since 2001-01 Livemint on Twitter ( )
India Today (@IndiaToday) Tweeted:
The action is being seen in the backdrop of charges of alleged financial irregularities against the two brothers.
Enforcement Directorate raids former Ranbaxy group promoters ( )
Business Standard (@bsindia) Tweeted:
#UttarPradesh sets August 31 deadline for mills to settle farmers' Rs 8,200 crore sugarcane arrears, writes @virendrajourno
UP sets August 31 deadline for mills to settle Rs 8,200 crore cane arrears ( )
Forbes India (@forbes_india) Tweeted:
Worldwide trends show that declining car sales are not restricted to a particular country—and worryingly, they're here to stay: Auto slowdown takes global turn | Forbes India | By @sarda_pranit
#ElectricCars Forbes India on Twitter ( )
EconomicTimes (@EconomicTimes) Tweeted:
This debt of Rs 3,537 crore is over the Rs 6,547 crore Coffee Day Enterprises had Holding companies of VG Siddhartha had Rs 3,500cr debt