According to official data, country has more than 18 lakh registered companies but only 62 per cent of them were actively functioning at the end of October. The majority of active companies were engaged in business services. Latest data from the corporate affairs ministry showed that there were a little over 18.10 lakh registered companies at the end of October. In terms of total registered companies, nearly 62 per cent of them were active last month.
With more than 6.46 lakh companies shuttered and many others undergoing various regulatory processes, including liquidation, the total number of active entities stood at 11.16 lakh during the period. Entities are required to get registered under the Companies Act, which is implemented by the ministry, to function as companies.
Among the total number of registered companies, 6.46 lakh entities were shut down and 39,736 companies were in the process of being deregistered. The ministry, in its information bulletin for the month of October, said “Out of the 6, 46,882 closed companies, 10,574 companies were liquidated/ dissolved; 6, 00,048 companies were declared defunct.” At October end, Maharashtra had the highest number of registered companies (3.59 lakh), followed by Delhi (3.26 lakh), and West Bengal (1.98 lakh).In terms of economic activities, 3.57 lakh active companies were engaged in business services while 2.23 lakh firms were into manufacturing.