Stringent regulations targeting shell companies soon

The Indian Ministry of Corporate Affairs is considering taking action to prevent non-genuine entities from incorporating companies too easily. To do this, they may introduce new measures such as limiting the number of companies one person can incorporate and using a phone app to verify the registered office of a company. This decision comes after reports that some people have been incorporating thousands of companies and then selling them to other entities looking to set up shop in India. The ministry plans to consult with the Institute of Company Secretaries of India to discuss imposing a limit on the number of companies one person can incorporate. Additionally, the government’s upgraded V3 portal is expected to have new measures in place to make it harder for shell companies to operate.