More than 400 companies fail to start business in Telangana

Hyderabad: More than 400 companies have approached the Telangana Registrar of Companies (RoC) to remove their names from the list of RoC citing several reasons. The RoC, Josekutty V.E, said 438 companies have filed applications under Section 248(2) of the Companies Act 2013 either on grounds that they have failed to commence business within one year of their incorporation or they have not been conducting any business or operation for a period of two immediately preceding financial years.

The said companies have not made any petition within such period to obtain the status of a dormant company or they have obtained the status of a dormant company but do not wish to continue their registration as companies, according to the RoC. Companies that submitted their applications to the RoC include those from pharmaceutical, advertising, infra, Information Technology (IT), oil and minerals, granite, healthcare, finance, securities, hotels and resorts, energy, and hospitality industry. Aliens Hirises Private limited, Axiom Healthcare Private Limited, and Janata News Media Network Private limited are a few prominent business houses among the 438 companies.

It may be noted that both the Telugu states had ranked first and second in the ease of doing business (EoDB) index for 2017, with 98.3 per cent and 98.28 per cent, respectively. The department of industrial policy and promotion (DIPP) had announced the rankings in 2018 and now with 438 companies urging the RoC to drop their names from the list may hamper the EoDB in Telangana. "It is the responsibility of the state government to try and find out why these companies were unable to run their operations in the state," an entrepreneur from Telangana said.