Registration Desk

Fast Track Exit

The quickest way to close the non - operational company is through a process called Fast Track Exit (FTE) under Companies Act, 2013.Sections 248 to 252 contains the details about the process of Fast Track Exit. These sections comes into effect from 26th December, 2016.

Details


1.

Who can file application for voluntary " Removal of name of Company from Registrar of Companies " u/s 248(2) of Companies Act, 2013?

(A)

A company who has failed to commence its business within ONE year of its incorporation.

(B)

A company which is not carrying on any business or operation for a period of TWO immediately preceding financial years and has not made any application within such period for obtaining the status of dormant company under section 455.

2.

Who is not allowed to file application u/s 248 (2) of Companies Act, 2013 ?

(A)

If any time in the previous three months, the company has changed its name.

(B)

If any time in the previous three months, the company has shifted its registered office from one State to another.

(C)

If the company has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business.

(D)

If it has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section or deciding whether to do so or concluding the affairs of the company, or complying with any statutory requirement.

3.

Procedure to File Application u/s 248(2)?

(A)

Extinguish all its liabilities, by a special resolution or consent of 75% members in terms of paid up share capital.

(B)

File an application in E-form STK -2 along with following attachments:

  • 1.  A statement of accounts showing of assets and liabilities of the Company made upto day to day, not more than 30 days before the date of application and certified by a CA.
  • 2.  Copy of Board Resolution authorizing the filing of this application.
  • 3.  Copy of special resolution passed or copies of consent obtained u/s 248(2) as applicable
  • 4.  Indemnity Bonds [ to be given individually or collectively by the director (s) ] in Form No. STK - 3
  • 5.  Affidavit in Form No. STK - 4
  • 6.  Details of all Directors along with DIN, Address, Contact No., Email-id

4.

ROC notice to more than 2 Lakh Companies for Strike off of Name

(A)

First step after receipt of notice should be, filing of an appropriate reply with concerned ROC by point out the facts of non operational or non filing of ROC forms, intent of the Company either closure of the Company or continue the business of the Company etc.

(B)

If Company wants to continue is business and revive itself then take the following steps:

  • 1.  File the suitable reply with the ROC by affirm the particulars for non filing of ROC forms for the period of (No. of years) years.
  • 2.  Get ready and file the pending ROC forms with additional fees.
  • 3.  Submit applications for the condonation of delay in filing of e-forms where ever mandatory.