IndiaToday
With many small businesses struggled to continue during the pandemic, over 10,000 companies have been closed down in the country till February in FY21, the Ministry of Corporate Affairs (MCA) said on March 8.
The MCA does not maintain any record of the companies which have gone out of business. However, a total of 10,113 registered companies have been struck off the official Register of Companies under section 248 (2) of the Companies Act, Minister of State for Finance and Corporate Affairs Anurag Thakur said.
Section 248(2) of the Act provides the Registrar of Companies with powers to remove a company from the records if they fail to start operations within one year of registration or fail to show any operation for the two immediately preceding financial years.
On March 8, Thakur clarified the ministry has not run any drive to strike off companies on its own during the current financial year.
He in fact outlined the steps taken by the government to help and support a higher number of companies get incorporated. He stressed that the government’s decision to amend the definition of micro and small companies will bring more businesses into the formal economy.