Defining "Shell Companies"

As it is widely known now, in a major crack down the Indian Government had de-registered 226,000 companies from the registry of the Indian companies due to irregular or no filings of statutory returns and non-compliance with certain compliance requirements.

As a consequence, such companies ended up defunct companies and directors thereof were disqualified and no more eligible to act as directors.

In this backdrop, a Parliamentary panel has identified the eminent need to incorporate “Shell Co