Centre set to remove 3,300 firms from official records

THE MINISTRY OF corporate affairs (MCA) will soon strike off names of 3,300 companies from the official records after the registrar of companies (RoC) received requests for the removal of their names.

The RoC had issued public notices in April inviting objections to the proposed removal of these companies. The process is being carried out under Sections 248 to 252 of the Companies Act, which outline the legal framework for striking off company names — either by the RoC on its own or voluntarily by the company.

Of the 3,300 companies slated for removal, 700 are based in Maharashtra, nearly 500 in Delhi, over 350 in Karnataka, and more than 200 each in Gujarat, Uttar Pradesh, and West Bengal, among other states.

In the case of a voluntary strike-off, a company may pass a special resolution or secure the consent of at least 75% of its members before filing an application with the RoC to have its name removed from the official registry.

Under Section 248(1) of the Companies Act, the RoC also has the authority to act suo moto — without a company’s request — to strike off names. Alternatively, companies may apply for removal under Section 248(2) of the Act.

The typical grounds for striking off a company include: failure to commence business within one year of incorporation, failure to receive subscription money within 180 days of incorporation, or non-operation of business for two consecutive financial years.

As of the end of FY25, India had 1,850,932 active companies out of a total of 2,852,449 registered companies nationwide.

Source : https://www.business-standard.com/industry/news/corporate-affairs-ministry-to-remove-3-300-firms-from-official-records-125050400231_1.html