The company registrar has struck off 94,000 companies from around 250,000 because they failed to file their annual reports and accounts, it emerged on Tuesday.
Speaking after discussion of the matter by the House Trade Committee, DISY MP Maria Kyriacou, a former company registrar herself, said companies were required by law to submit the information.
If a company is struck off, creditors cannot claim their dues.
According to Kyriacou, some 65,000 objections have been filed mainly by banks, the tax department, but also the companies themselves.
The company registrar had said he would start removing dormant companies from the registry.
The warning included companies which failed to pay the annual €350 levy.
Kyriacou said the department needed more staff and an upgrade of its equipment to enable it to do its job faster.
MPs heard that it would take six years for the department to digitise all the company information.
Kyriacou said the main reason for the delay in filing their annual reports was the economic collapse in 2013.
The DISY MP suggested giving them more time to update their accounts.