Now Reading: Over 6.6 lakh Indian companies missed annual filings in FY25
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Over 6.6 lakh Indian companies missed annual filings in FY25
More than 664,000 eligible companies failed to file annual returns and 662,349 missed financial statements in 2024-25, government data tabled in the Lok Sabha shows. The non-filing rates reached 37.7% and 37.5%,…
The Story in Brief
More than 664,000 eligible companies failed to file annual returns and 662,349 missed financial statements in 2024-25, government data tabled in the Lok Sabha shows. The non-filing rates reached 37.7% and 37.5%, respectively, up from about 23% five years earlier. Yet action was initiated against just 277 companies for missing annual returns and 291 for missing financial statements.
Lawyers cited inactive firms, financial stress, rising compliance demands, portal problems, audit delays and limited support for smaller businesses. The number of eligible companies rose 58% to 1.76 million in five years. The Ministry of Corporate Affairs database had 3.15 million registered companies as of June 2026, including 2.12 million classified as active, according to its portal.
The Indian Opinion
It is tempting to blame small businesses alone, or to treat every non-filer as a fraudulent shell. Neither claim fits the available evidence. Some firms may be dormant or winding down, while others face genuine cost, technology and compliance burdens. But an enforcement count in the hundreds against more than 6.6 lakh defaulters makes the registry harder to trust. The useful test is whether the ministry can publish a clear clean-up plan and sharply increase action against persistent non-filers.
Source: livemint.com
This story was synthesised by AI from the source linked above.
