Press Information Bureau

Government of India

Ministry of Corporate Affairs

08-September-2011 14:58 IST

Defunct Companies

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that the total number of defunct companies, (those that have not filed their Annual Returns and Balance Sheets for the last three consecutive years or more) as per MCA records is 1,62,144.

Total number of defunct private limited /limited companies closed down under the Easy Exit Scheme, 2010 (EES, 2010) are 15,667.

Nil, as there is no provision of Fee under the Easy Exit Scheme, 2010.

The Ministry has announced another scheme/ guidelines after closure of Easy Exit Scheme, 2010, for enabling quick and hassle free closure of companies, namely:

(i) Easy Exit Scheme, 2011 (w.e.f 01.01.2011 to 30.04.2011)

(ii) Guidelines for Fast Track Exit Mode (w.e.f 03.07.2011)

The minister was replying to a written question on the details regarding number of defunct companies upto the current year 2011; the number of defunct private limited/limited companies closed down under the Easy Exit Scheme, 2010 (EES,2010);the amount of revenue accrued by the Government in the current year; and the concrete steps taken by the Government in this regard.

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ST/-

Company closure schemes enable streamlined exit for defunct companies; no fee under Easy Exit Scheme, fast track measures introduced. Defunct companies are those failing to file Annual Returns and Balance Sheets for three consecutive years. A number of companies were closed under the Easy Exit Scheme, 2010, which imposed no fee. The Ministry announced further closure mechanisms-Easy Exit Scheme, 2011 and Guidelines for Fast Track Exit Mode-to provide expedited, less burdensome routes for company closure and administrative removal from the register.