55,000 Shell Companies Struck Off in 2nd Phase by MCA

Ministry of Corporate Affairs has struck off 55,000 companies in the second phase for non-filing of financial statements or annual returns for a continuous period of two years or more.

Highlights:

55,000 firms have been struck off in the second phase by the Ministry of Corporate Affairs, and 2.26 lakh firms were struck off in the first phase

  • The government doesn’t want the corporate companies to deal into money laundering, drug funding or any illegal activities
  • The companies have been struck off for non-filing of financial statements or annual returns for a continuous period of two years or more as part of the drive to curb illegal funds flow

In a crackdown on shell companies, the Ministry of Corporate Affairs has again struck off 55,000 shell companies in the second phase. In the first phase over 2.26 lakh firms had been struck off for non-filing of financial statements or annual returns for a continuous period of two years or more.

MCA said that these struck off companies were not only non-compliant firms but  also most of them were bogus. The government does not want the corporate companies to be misused for money laundering, drug funding or to be involved in any illegal activities.

The Serious Fraud Investigation Office (SFIO) and other enforcement authorities are investigating the issue and taking proper action against the companies. Along with 55,000 shell companies, many other companies have been sent notices and are under scrutiny. Most of these companies operate from a single room set-up.

The Government had identified 2.25 lakh companies and 7,191 LLPs in the month of June 2018 which did not file requisite financial statements for 2015-16 & 2016-17. Thes companies might get struck off during the ongoing fiscal year. These efforts by the government will help curb illicit funds flow and weed out shell companies.

To search for any struck-off company details visit InstaFinancials website, you can get reports on the financial statements of any company you want to check.

Reference Links:

  1. 55,000 shell firms struck off in 2nd phase, says Union minister
  2. Govt says 55,000 shell firms struck off in second phase
  3. 55,000 shell firms struck off in 2nd phase: Government

 

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