What are shell companies? Govt to lay down guidelines by Jan-end

The government will come up with a proper definition of what a shell company is by the end of this month.

According to sources, the Prime Minister’s Office (PMO) had in February last year constituted a special task force to tackle malpractices by shell companies. The task force will lay down specific guidelines to validate the clampdown on shell companies. The definition of shell firms is expected to be inserted in the Companies Act, securities laws, and also in the Income-Tax (I-T) Act, wherever applicable.

The Centre is working on recommendations from multiple enforcement agencies and regulatory bodies, sources said.