Over one-third of registered companies out of business

While authorities step up their clampdown on companies suspected of being used as a conduit for illegal activities, the number of active firms stood at little over 11.30 lakh as on October 31.

The corporate affairs ministry, which is implementing the Companies Act, has so far struck off the names of around 2.24 lakh entities that have not been carrying out business activities for long.

"The total number of companies registered in the country as on October 31, 2017, stood at 17,04,319... there were 11,30,784 active companies as on October 31, 2017," the ministry said in a report for the month of October.

According to the report, out of the total, 5.35 lakh companies were closed down, 1,123 were assigned dormant status, 5,957 were under liquidation and 31,666 were in the process of being struck-off, among others.

"Out of the 5,34,674 closed companies, about 10,443 companies were liquidated/ dissolved; 4,92,735 companies were defunct (and hence struck-off); 19,984 companies were amalgamated/ merged with other companies; 6,719 companies were converted to LLP (Limited Liability Partnership) and 4,793 companies were converted to LLP and dissolved," it noted.

Among the active companies, the maximum were into business services with the number of such entities touching 3.34 lakh, followed by manufacturing (2.30 lakh), trading (1.50 lakh) and construction (1.03 lakh).

In the report, the ministry said a total of 7,556 companies were registered this October compared to 6,542 firms in the year-ago period.