Defining the Shell Companies in India Parlance

The purpose of this article is Defining Shell Companies in Indian parlance. Though there have been significant actions taken on the Indian companies by their regulators, tax authorities and the company registration offices, in reality there is no clear definition of what shell company is ?

Neither the Companies Act 2013, nor Companies Act 1956 nor any other Act has defined this term. There is however, a little bit of research done by one of the Indian forensic accounting firm (private firm) called Indiaforensic Research Foundation has done efforts to define the different types of Shell Companies in its certification program Certified Anti Money Laundering Expert

Typically shell companies are incorporated for three different motives such as to avoid taxes. The Shell companies may also be incorporated with the objective of manipulating the prices of the shares. In Indian parlance, it includes creating layers of companies and using them for changing the colour of money from white to black or from black to white as the need be.