Parliament Question: Closure of companies

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO. 382 ANSWERED ON MONDAY, 03rd FEBRUARY, 2026 Closure of Companies 382. Dr. V. Sivadasan: Will the Minister of Corporate Affairs be pleased to state: (a) the number of companies that were closed, struck off, liquidated or voluntarily exited from the country during the last five years, year-wise and category-wise; and (b) the reasons for closure, liquidation or exit of these companies, including financial distress, insolvency, regulatory non-compliance or relocation abroad? ANSWER THE MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND MINISTRY OF ROAD TRANSPORT AND HIGHWAYS. (SHRI HARSH MALHOTRA) (a): Ministry of Corporate Affairs (MCA) administers the provisions of Companies Act, 2013 (the Act), Limited Liability Partnership Act, 2008 and Insolvency and Bankruptcy Code, 2016. There is no definition for “Closed company” under the Act. However, Ministry takes action under section 248(1) for striking off such companies which are not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455 of the Act or the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A of the Act. Further, under section 248(2) of the Companies Act, 2013 such companies which voluntarily seek removal of their name from the Registrar of Companies after extinguishing all their liabilities are struck off by following due process. Details of Struck -off companies under section 248(1) of the Companies Act in last five years on account of non-compliance of provisions of the Companies Act, 2013 are at Annexure- A. Details of Struck -off companies on the application of the Companies under section 248(2) of the Companies Act, 2013 in last five years on the application of the company are at Annexure- B. Details of closed companies (other than Strike off) through Amalgamation, Conversion & dissolution) are at Annexure - C. (b): There are various reasons for closure, liquidation, exit of companies including inter alia change in economic scenario, technological innovations, business strategy, merger, demerger amalgamation, financial distress, etc. The reasons differ from company to company. 1Details of Struck -off companies under section 248(1) of the Companies Act, 2013 for PQ No 382 to be answered in Rajya Sabha on 03/02/2026- Annexure – A. Sl. No. Year Action under section 248(1) of the Companies Act,2013. 1 2020-2021 217 2 2021-2022 28,305 3 2022-2023 68,893 4 2023- 2024 - 5 2024-2025 - Total 97,415 2Details of Struck -off companies under section 248(2) of the Companies Act, 2013 for PQ No 382 to be answered in Rajya Sabha on 03/02/2026- Annexure- B. Sl. No. Year Action under section 248(2) of the Companies Act, 2013. 1 2020-2021 12,487 2 2021-2022 33,923 3 2022-2023 13,169 4 2023- 2024 16,464 5 2024-2025 15,837 Total 91,880 3Details of closed companies (other than Strike off) through Amalgamation, Conversion& dissolution) for PQ No 382 to be answered in Rajya Sabha on 03/02/2026 – Annexure-C). Year 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 [till 30 Nov] Amal Conver Dis Ama Conve Dis Ama Conve Dis Ama Conve Dis Ama Conve Dis Ama Conve Dis gama ted to sol lgam rted to sol lgam rted to sol lgam rted to sol lgam rted to sol lgam rted to sol Category ted LLP ved ated LLP ved ated LLP ved ated LLP ved ated LLP ved ated LLP ved Total number of Companies 1,691 1,409 135 1,954 1,646 241 2,192 290 246 2,930 2,200 445 2,723 2,151 591 1,282 1,012 266 **** 4