The Narendra Modi government has found a smart way to tackle
the problem of shell companies by geo-tagging. The government is prepared to
act tough on black money. The Ministry of Corporate Affairs (MCA) might ask
companies to geo-tag the location of their registered offices in the statutory
filings with the RoC. Geo-tagging will help the government identify cases in
which one building houses hundreds of shell companies. However, many companies operating from one address is not a
violation in itself. There is no limit on companies that can be registered at
the same address. Consultants typically house the registered offices of
companies for which they handle compliances, a practice common in Singapore and
Mauritius as well. But the government believes a large number of such companies
are used merely for money laundering. Geo-tagging will help the government pin
down such shell companies.
The Narendra Modi government has found a smart way to tackle
the problem of shell companies by geo-tagging. The government is prepared to
act tough on black money. The Ministry of Corporate Affairs (MCA) might ask
companies to geo-tag the location of their registered offices in the statutory
filings with the RoC. Geo-tagging will help the government identify cases in
which one building houses hundreds of shell companies.
However, many companies operating from one address is not a
violation in itself. There is no limit on companies that can be registered at
the same address. Consultants typically house the registered offices of
companies for which they handle compliances, a practice common in Singapore and
Mauritius as well.
But the government believes a large number of such companies
are used merely for money laundering. Geo-tagging will help the government pin
down such shell companies.