Fast Track Exit Mode to get struck off when you are doing no business

FAST TRACK EXIT MODE

Winding up of Company is not easy way to get struck off from the Register of Companies registered as per Companies Act, 1956.

If you are a company registered long ago or a few years back with no or less operations of business, then, you should take this opportunity i.e. FTE. Fast Track Exit Mode means to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956.

Why to opt for FTE?

·        an easy mode of closing non-operating companies

·        at cheaper cost

·        with lesser formalities

Who can file FTE:

·        Companies which are not operating or not carrying on any business since last one year from the date of application or,

·        Companies which are not operating or not carrying on any business since incorporation and, Company having Nil assets & liability can apply for FTE scheme e.g. Balance Sheet has one side 1Lakh Capital and other side Loss Rs. 1Lakh

·        Any companies which has not file the statutory documents can file for FTE.

Who cannot file FTE:  

·        Listed companies,

·        companies that have been de-listed due to non-compliance of listing agreement or any other statutory Laws,

·        section 8 companies,

·        vanishing companies,

·        companies under inspection/investigation,

·        companies against which prosecution for a non-compoundable offence is pending in court,

·        companies having outstanding public deposits or secured loan or dues towards banks and financial institutions or any other Government Departments 

cannot apply for FTE scheme.

A Company which has not paid income tax / sales tax / central excise / other Government dues cannot make application under fast track exit mode. NOC is not required from Income Tax / Sales Tax / Central Excise / other Government authorities but directors have to confirm that there is no pending action these authorities.

Procedure for filing FTE:

·        The Companies want to opt for Fast track exit Scheme shall file an application in Form FTE with Registrar.

·        Affidavit, Indemnity Bond & Statement to accounts will be attached with application form.

·        And statement to accounts will be certified by Chartered Accountant in practice or auditor of the Company.

·        The company shall disclose pending litigations if any, involving the company while applying under FTE.

·         The Registrar of Companies shall examine the same and if found in order, shall give a notice to the Company by e-mail on its e-mail address intimated in the Form, giving thirty days time, and inform in mail that if nothing will object the FTE then Company will be dissolved and its name will be struck off from the registers.

·         In case companies are regulated by other authorities, after FTE mode Registrar will inform those authorities about the FTE of company and Registrar will also intimate Income Tax department regarding FTE of company giving period of 30 days for their objection.

·        After passing the time of 30 days Registrar will strike of the name of company.

·         Stamp duty will be paid on Affidavit & indemnity bond as per Stamp act

·        If any of the stakeholders raises objection, the applicant Company can reply to that. There is no time limit for company to reply for objection.

·        Directors are liable to pay the liabilities, to indemnify any person for the losses and to settle all lawful claims. 

It take around 3-4 months to get the company name strike off from the register and complete the fast Track exit mode. However the process is yet simple with less formalities.

In case of further discussions, please contact CS NEha Seth at +91 9871903449 or drop us email at csnehaseth@gmail.com