Fast Track Exit Mode

Startup @ Rs. 15000/- (all inclusive)

Fast Track Exit Mode

Fast Track exit mode is one of the methods through which a company can be dissolved without following the lengthy process of winding up. It is an easy way to close those companies that are not having any assets or liabilities.

It requires a lot of time to register a company but at the same time, there are a number of companies which registered under Companies Act but because of various reasons they want to exit business or have become inoperative or started off the business but later became defunct; for all such and many other companies who are closing down their business, the Ministry of Corporate Affairs introduced the method of Fast track Exit which can now simplify the exit work for companies.

As per Section 248 of the Companies Act 2013, the Registration of Companies may strike off the name of the company once it fulfils all the conditions mentioned in the section. The current procedure for getting the name of the company struck off from the list requires an application to be sent to the Registrar of the Companies along with a filing fee of Rs. 5000. The following documents should be attached along with FTE:

  1. Affidavit by each director of the company
  2. Indemnity Bond by directors, this can be done individually or collectively
  3. Statement of Accounts (not old than one month preceding the date of filing of application)
  4. Special Resolution by the company
  5. Statement regarding pending Litigation

This act came into effect on 3rd July 2011 and since then it has helped many companies seamlessly follow the exit policy.

Common Questions


Following are the companies that can apply for Strike off under FTE:
  • Companies that have:
    1. zero assets and zero Liabilities
      not commenced any activities or operations since its incorporation or has not carried on any activities or operations for at least a period of one year before making an application under FTE.
  • Dormant Companies- means a company whose incorporation was done for a future project and currently there are no significant accounting transactions in the company.
  • Defaulting companies- means those companies that have not filed their annual return and financial statements for at least a period of two years.
No, a listed company cannot apply for Strike off under FTE. Also Company which are delisted for noncompliance of any statutory provision under listing agreement are not eligible for strike off under FTE mode.
The company is required to make an application to Registrar of Companies (ROC) inPrescribed form along with the necessary documents.
Yes, ROC has the power to strike off the name of the company,if ROC has sufficient reasons and information that the company is not doing any business operations or activities.

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Timeline

Once we apply for strike off, it takes 3-4 months to get companies name struck off from Records of Register of Companies, subject to time taken by government in processing the documents.