As of November 14, 2024, there are 27,75,567 registered companies in India, with 17,83,418 active companies. Over the past five years, a significant number of companies have failed to file their annual returns and audited financial statements. For instance, in 2022-23, 5,30,076 companies did not file financial statements, and 5,14,343 failed to file annual returns. The Ministry of Corporate Affairs (MCA) takes various actions against these defaulting companies, such as filing prosecutions under sections 92, 96, 99, and 137 of the Companies Act, 2013, or striking off companies under Section 248(1). In the last five years, 322 prosecutions were filed, and 1,39,136 companies were struck off for non-compliance. The term “shell company” is not defined under the Companies Act, but the government takes action against companies involved in fraudulent activities, including diversion and siphoning of funds, when violations are found.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 36
ANSWERED ON MONDAY, 25TH NOVEMBER 2024/
Agrahayana 4, 1946 (Saka)
Action Taken against Defaulter Companies
36. Shri S Venkatesan :
Will the Minister of CORPORATE AFFAIRS ……… be pleased to state:
a. the number of registered companies exists in the country as on date;
b. the number of registered companies which have not filed returns with Audited Statements during the last five years;
c. the details of action taken against such defaulting companies; and
d. the number of companies which were detected as Shell companies or indulged in money laundering?
ANSWER
Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.
(Shri Harsh Malhotra)
(a) The number of registered companies as on 14thNovember, 2024 is 27,75,567 and the number of active companies in India as on 14th November, 2024 is 17,83,418.
(b) The number of Companies who have not filed the Annual Returns and Audited Financial Statements during the last five years are shown below:
| Financial Year | No. of Companies who have not filed Financial Statements | No. of companies who have not filed Annual Returns |
| 2018-19 | 1,79,697 | 1,75,034 |
| 2019-20 | 2,18,237 | 2,19,854 |
| 2020-21 | 2,61,785 | 2,58,961 |
| 2021-22 | 3,70,886 | 3,70,021 |
| 2022-23 | 5,30,076 | 5,14,343 |
(c) & (d) : Registrar of Companies take action against the defaulting companies who fail to file their Annual Returns and /or Financial Statements by either filing prosecution under sections 92, 96, 99, 137 of the Companies Act, 2013 or by striking off the name of the companies under section 248(1) of the Companies Act, 2013 read with the Companies (Removal of names of companies from the Register of Companies) Rules, 2016. Further, total 322 prosecutions have been filed during the last five years against the defaulting companies and total 1,39,136 companies have been struck off for non-filing their Annual Returns and audited Financial Statements. There is no definition of “Shell Company” under the Companies Act. However, action is taken against companies for diversion, siphoning or fraud etc. as the case may be, whenever a contravention of the Companies Act, 2013 is found.
