Shell Companies:

Description

Context:

  • Government has identified 2,38,223 companies as shell companies between 2018-2021.

About Shell Companies:

  • There is no definition of the term “Shell Company” in the Companies Act.
  • It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership, benami properties etc.

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