“Fast Track Exit (FTE) Mode” is a scheme framed by the Government to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956 in time bound manner.
There are two main criteria:-
The Guidelines will be implemented with effect from 3rd July, 2011.
Yes, any company, which has been identified as dormant by the Ministry of Corporate Affairs, can apply under FTE. Such companies need not to file Form 61 for normalizing, as currently, companies in dormant stage is barred from filing any forms. Once form 61 is filed, the DG of ROC would convert the status of the company to active for a period of 21 days, which essentially means we need to file for Fast exit within 21days from the date form 61 is approved.
Any company, which has not filed its statutory documents i.e. Balance Sheet and Annual Return for any of the financial year 2006-07, 2007-08, 2008-09 and 2009-10, has been identified as defaulting company. Directors of such companies are debarred from filing any document till they make the default good. Such defaulting companies can apply under FTE.
Following companies are not entitled to opt for FTE scheme:
The Company desirous to get its name struck off from the Register shall file an application in the prescribed Form FTE online with the Registrar. The form shall be accompanied with
Yes, applicant is required to file an application in the prescribed Form FTE along with prescribed fee of Rs. 5,000/-
In such case, the application shall be accompanied by certificate from a CA/CS/CWA in whole time practice along with their membership number, certifying that the applicants are present directors of the company. In such cases, the applicants shall not be asked to file Form 32 and Form DIN.
In all cases, certification by a practicing professional (i.e. CA/CS/CWA) is mandatory.
If the pending prosecutions are only for non-filing of Annual Returns under section 159 and Balance Sheet under section 220 of the Act, such application may be accepted provided the applicants have already filed the compounding application. However, steps for final strike of the name of the company will be taken only after disposal of compounding application by the competent authority.
Foreign nationals and NRIs may get their Indemnity Bond and Affidavit notarized as per their respective country’s law.
List of applications filed under FTE will be available on the portal. In case any stakeholder has any objections to the Striking off the name of any company, he/she may raise such objection by email/letter with the concerned ROC Office within 30 days from the date of filing Form FTE by the company.