THINGS TO KNOW BEFORE YOU REGISTER- FAST TRACK EXIT OF THE COMPANY
One of the speedy way to close down a company being non–operational over a period of time is fast can proceed for closure under this criteria:
1. Within one year of its incorporation if a company fails to commence its business;
2. Subscribers to MOA has not paid the subscription amount within 180 days and no declaration filed to this effect;
3. When a company voluntarily wants to close, it can after clearing all its liabilities, by obtaining the consent of at least 75% or more shareholders in terms of paid-up capital;
4. Not able to carry any business for a period of two years as per new rule and has not sought to call itself a dormant company.
The Fast track scheme is for faster disposel of companies. Under Fast track scheme a defunct company can proceed for strike off their name from register in relatively less time, subject to the following conditions:-
1. A company applying for exit under fast track scheme should not have any asset or liability.
2. The Company is not carrying any business activity or operation from last 1 year before making the application under Fast Track Scheme.
3. The company fails to commence any business within one year of its incorporation.
4. Subscribers to MOA has not paid the subscription amount within 180 days and no declaration filed to this effect.
Procedure of Fast Track Exit of the Company
Step - 1 : Hold board meeting pass board resolution for strike off company and authorise a director to file application and sign all required documents.
Step - 2 : Apply to registrar of company in STK-2 .
Step - 3 : The Form STK-2, should be filed electronically on the Ministry of Corporate Affairs portal namely www.mca.gov.in and by making payment of Rs. 5000/- as the ROC fees.
Step - 4 : Filing of application for Increase in Authorised Capital in SH-7
The authorised director must file an application in Form SH-7 with the pertinent ROC with attachments such as a copy of the revised MOA & AOA, Special Resolution, and so on, once the shareholders' permission is acquired through the passing of the special resolution in the EGM. The company's authorised capital has increased as a result of the approval of the SH-7.
Step - 5 : Any pending litigations involving the company should be disclosed while applying under this Scheme..
Most frequent questions and answers
Ministry has issued Guidelines for “Fast Track Exit (FTE) Mode” to give opportunity to the defunct companies to get their names struck off from the register.
Ther are two main criteria:-
1. The company applying under FTE shouldn have any asset or liability.
2. The company should not have commenced any business activity or operation since incorporation or at least one year must has been passed since last business activity or operation.
Yes, any company, which has been identified as dormant by MCA can apply under FTE.
Yes, applicant is required to file form FTE along with the prescribed fee of Rs. 5000/-.
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.