.jpg)
Shocking! 2 lakh private companies closed in five years; Central government reveals in Lok Sabha
New Delhi, December 3, 2025: An important revelation depicting the shock to the business sector in the country was made in the Lok Sabha today. A total of 2,04,268 private companies have closed in the last five years (2020-25). This figure was presented by the Central Government in the reply of Union Corporate Affairs Minister Nitin Gadkari. Most of the companies have been removed from the registered register due to merger, change of business or voluntary cancellation.
Year-wise breakdown of companies closed
Companies closed in the year2024-2520,3652023-2421,1812022-2383,4522021-2264,0542020-2115,216
Since 2021-22 till now, 1,85,350 companies have been removed from the registered list. The highest number of these 82,125 companies were closed in 2022-23 due to the campaign against dormant companies. Such companies have been closed down voluntarily as per regulatory provisions due to long-term non-operation or due to voluntary closure.
No scheme for employees
The government clarified that there is no special scheme proposed for rehabilitation or repatriation of employees of closed companies. Also, there is currently no scheme for special tax concessions for industries in rural or backward areas. Instead, the focus is on phasing out tax concessions and simplifying the tax structure.
Strict action on shell companies
Although there is no clear definition in the Companies Act regarding shell companies (dormant companies used for money laundering), if any suspicious activity is detected, the Enforcement Directorate (ED) and the Income Tax Department are immediately informed. For this, the minister said that there is a plan to strengthen inter-agency coordination.
Measures to boost investment
To make it easier to do business and attract investment, corporate tax rates have been drastically reduced. Attractive tax options have been made available for existing and new companies. However, the closure of lakhs of companies has raised concerns in the industry. Economists believe that the economic slowdown, regulatory challenges and market competition have led to this increase.
The revelation has created a stir in the business community, with opposition parties demanding that the government take action in this regard. For more information, visit the official website of the Ministry of Corporate Affairs.
New Delhi, December 3, 2025: An important revelation depicting the shock to the business sector in the country was made in the Lok Sabha today. A total of 2,04,268 private companies have closed in the last five years (2020-25). This figure was presented by the Central Government in the reply of Union Corporate Affairs Minister Nitin Gadkari. Most of the companies have been removed from the registered register due to merger, change of business or voluntary cancellation.
Year-wise breakdown of companies closed
Companies closed in the year2024-2520,3652023-2421,1812022-2383,4522021-2264,0542020-2115,216
Since 2021-22 till now, 1,85,350 companies have been removed from the registered list. The highest number of these 82,125 companies were closed in 2022-23 due to the campaign against dormant companies. Such companies have been closed down voluntarily as per regulatory provisions due to long-term non-operation or due to voluntary closure.
No scheme for employees
The government clarified that there is no special scheme proposed for rehabilitation or repatriation of employees of closed companies. Also, there is currently no scheme for special tax concessions for industries in rural or backward areas. Instead, the focus is on phasing out tax concessions and simplifying the tax structure.
Strict action on shell companies
Although there is no clear definition in the Companies Act regarding shell companies (dormant companies used for money laundering), if any suspicious activity is detected, the Enforcement Directorate (ED) and the Income Tax Department are immediately informed. For this, the minister said that there is a plan to strengthen inter-agency coordination.
Measures to boost investment
To make it easier to do business and attract investment, corporate tax rates have been drastically reduced. Attractive tax options have been made available for existing and new companies. However, the closure of lakhs of companies has raised concerns in the industry. Economists believe that the economic slowdown, regulatory challenges and market competition have led to this increase.
The revelation has created a stir in the business community, with opposition parties demanding that the government take action in this regard. For more information, visit the official website of the Ministry of Corporate Affairs.
Year-wise breakdown of companies closed
Companies closed in the year2024-2520,3652023-2421,1812022-2383,4522021-2264,0542020-2115,216
Since 2021-22 till now, 1,85,350 companies have been removed from the registered list. The highest number of these 82,125 companies were closed in 2022-23 due to the campaign against dormant companies. Such companies have been closed down voluntarily as per regulatory provisions due to long-term non-operation or due to voluntary closure.
No scheme for employees
The government clarified that there is no special scheme proposed for rehabilitation or repatriation of employees of closed companies. Also, there is currently no scheme for special tax concessions for industries in rural or backward areas. Instead, the focus is on phasing out tax concessions and simplifying the tax structure.
Strict action on shell companies
Although there is no clear definition in the Companies Act regarding shell companies (dormant companies used for money laundering), if any suspicious activity is detected, the Enforcement Directorate (ED) and the Income Tax Department are immediately informed. For this, the minister said that there is a plan to strengthen inter-agency coordination.
Measures to boost investment
To make it easier to do business and attract investment, corporate tax rates have been drastically reduced. Attractive tax options have been made available for existing and new companies. However, the closure of lakhs of companies has raised concerns in the industry. Economists believe that the economic slowdown, regulatory challenges and market competition have led to this increase.
The revelation has created a stir in the business community, with opposition parties demanding that the government take action in this regard. For more information, visit the official website of the Ministry of Corporate Affairs.
