With government strengthening rules and regulations to check the existence of shell companies, it has emerged that almost a third of the companies registered with the Ministry of Corporate Affairs (MCA) have shut down.
It also emerged that almost half of them wrapped up in the past year alone.
As per data from the Ministry of Corporate Affairs, there were 1.7 million companies as of January 31, 2018.
But, now 538,000 or about 32 per cent have opted to close down.
It is also noteworthy that most of these companies had gone defunct under Section 248 of the Companies Act 2013.
With the new companies law the compliance norms have been made stringent.>