The unmaking of shell companies

As the government looks at measures to stop the practice of using shell companies as conduits for money laundering and tax evasion, a key legal challenge facing enforcement agencies relates to piercing the corporate veil behind which such companies operate. A release from the Prime Minister’s Office points out: Of 1.5 million registered companies in India, only 600,000 file their annual returns. The challenges are in gathering data and distinguishing genuine business transactions from those that are not.

Incorporating a company in India does not require a person to disclose the beneficial ownership of the firm’s shareholders. “This makes it easier