The Right to Disconnect Bill: Could This Change India’s Work-Life Culture for Good?
December 9, 2025
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- Sun, 14 December 2025
Over the last five years, more than 2.04 lakh private companies in India have shut down — a total of 2,04,268 firms.
These closures occurred for various reasons: many companies were amalgamated, converted, dissolved, or struck off under the Companies Act, 2013.
Over the years, the yearly breakdown of shut-downs shows swings: in 2024–25, 20,365 firms closed; in 2023–24, 21,181; 2022–23 saw a spike with 83,452 closures; 2021–22 had 64,054; and 2020–21 recorded 15,216 closures.
In addition to closures, a large number of companies have been formally removed from government records. Between financial years 2021–22 and July 16, 2025, a total of 1,85,350 companies were struck off — meaning they were officially deregistered because they either ceased operations or voluntarily applied for removal.
During the current fiscal year (up to July 16), 8,648 companies alone were struck off.
When asked whether there was any plan to rehabilitate employees from these now-defunct companies, the government responded that there is currently no proposal under consideration.
Also noteworthy is that the term “shell company” does not have a legal definition under the Companies Act, the government added.
With so many closures and deregistrations, authorities have flagged the need for stronger coordination with agencies like the Enforcement Directorate and the Income Tax Department to check for potential misuse of defunct or dormant companies.
[Credits for header image: G2learning hub
This content is for informational purposes only and does not constitute legal, financial, or investment advice. This has been constituted based on third-party sources. We do not assume any liability for actions taken based on this information.]
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