Press Information Bureau

Government of India

Ministry of Corporate Affairs

04-August-2011 18:30 IST

De-Registration of Inactive Companies

                The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that whether Government has enumerated or identified such registered companies which are inactive, dormant and have been in such mode for at least ten years.                          

Replying to a written question the minister said that the The Ministry had announced two schemes, namely

(i) ‘Easy Exit Scheme, 2010’ (w.e.f.     26.05.2010 to 31.08.2010) and

(ii) ‘Easy Exit Scheme, 2011’ (w.e.f. 1.1.2011 to 30.04.2011)

for those companies which were not carrying on  any business activity or operation on or after 1st April, 2008.

From 03.07.2011, the Ministry has come out with Guidelines for ‘Fast Track Exit Mode’ for simplified exit of defunct companies, which have not commenced their business since their incorporation or are not carrying on any business for the last  one year.           

As per present policy of the Ministry, such companies, which have not filed their Annual Returns and Balance Sheets for last three consecutive years or more are identified as dormant companies.

The details are as per Annexure attached.

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ANNEXURE

LIST OF COMPANIES WHO HAVE BEEN DORMANT FOR LAST THREE YEARS STATE WISE AS ON 31^ST JULY, 2011

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De-registration of inactive companies enabled through Easy Exit schemes and Fast Track Exit guidelines identifying dormant firms. De-registration is pursued via administrative schemes: two Easy Exit Scheme rounds and Guidelines for a Fast Track Exit Mode to simplify exit for companies that never commenced business or have been non-operational. Companies failing to file Annual Returns and Balance Sheets for three consecutive years are designated dormant companies, and a state-wise list as of 31 July 2011 records the national aggregate of such dormant companies.