MCA Cracks Down: Over 2 Lakh Companies Shut Down in 5 Years

MCA Company Closures: Financial Year‑wise Trend

According to data from the Ministry of Corporate Affairs, the number of companies struck off in recent years is in sharp contrast to the trend of the government going from large‑scale clean‑up campaigns to a more organized, constant compliance enforcement strategy. It is a clear indication of the government’s focus on transparency (more transparent and more compliant), the government wants to make companies in the corporate ecosystem still in business.

Financial Year‑wise Company Closures

Trend Analysis

The data shows a sharp increase in company closures during FY 2021–22 and FY 2022–23, when regulatory crackdowns were particularly acute. This is when authorities did a massive strike‑off against non‑compliant, inactive, and shell companies that failed to comply with laws. This uptick is a product of a policy‑driven clean‑up to solidify India’s corporate registry.

Following this phase, closures have moderated significantly. In FY 2023‑24 and FY 2024‑25 we see a significant decrease from bulk clean‑up exercises to continuous monitoring and enforcement. The regulator has instead adopted a more systematic approach to ensure that the compliance of a company is met.

For FY 2025‑26, the figures are provisional, as final data is yet to be officially released. Early patterns indicate a more stable and controlled strike‑off activity than in previous peak years which supports the policy shift towards consistent enforcement rather than sudden crackdowns.

The continuing change of behavior reflects the regulator’s continued focus on corporate discipline and an active, transparent business environment. That enforcement is strong and ongoing and there’s no bigger crackdown than a big regime.

Therefore, companies need to make statutory filings timely, accurate and comply with regulatory requirements to avoid the risk of being struck off under Companies Act, 2013.