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Fast Track Exit Scheme

January 30, 2014     by CS Smriti Sharma

With notification of Section 248-252 by the MCA vide Notification No. 16/2016 on 26th December, 2016, the process of striking off the name of the Company from the Register of Companies through the Fast Track Exit often called FTE, stands revised. The “Fast Track Exit” mode and now “Strike Off” mode was introduced by the MCA to give opportunity to the defunct companies to get their names struck off from the Register of Companies. The related rules, i.e., Companies (Removal of Names of Companies from the Registrar of Companies) Rules, 2016 were notified on 26/12/2016.

You may refer to our article containing the brief on Strike Off under the Companies Act, 2013 for applicable new provisions.

 

Fast Track Exit Scheme

Ministry of Company Affairs (MCA). MCA 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 under Section 560 of the Companies Act, 1956 in time bound manner. As per MCA circular No. 36/2011 dated 7 June 2011, following  are the main criteria for making an application under FTE:-

 

1.        Main criteria

  • The company applying under FTE should not have any asset and liability.
  • 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.

2.        Companies to whom FTE is not applicable:

The guidelines does not inter-alia cover

  • the listed companies,
  • companies that have been de-listed due to non-compliance of listing agreement or any other statutory Laws,
  • section 25 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 etc. or having management dispute or
  • company in respect of which filing of documents have been stayed by court or CLB or Central Government or any other competent authority.

3.        Documents Required:

Applicant is required to file an application in the prescribed Form FTE along with prescribed fee of Rs. 5,000/. The attachments to Form FTE are as follows:-

  • An affidavit sworn by each of the existing director(s) of the company to the effect that the company has not carried on any  business since incorporation or that the company did some business for a period up to a date (which should be specified)  and then discontinued  its operations and has not carried on any business since last one year, as the case may be An affidavit  should be sworn by each of the existing director(s) of the Company before a First Class Judicial Magistrate or Executive  Magistrate or Oath Commissioner or Notary. An Indemnity bond shall be duly notarized. In case of foreign nationals and  NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law.
  • Indemnity Bond, duly notarized, to be given by every director individually or  collectively, to the effect that any losses,  claim and liabilities on the company, will be  met in full by every director individually or collectively, even after the name of  the  company is struck off the register of Companies
  • Statement of Account prepared as on date not prior to more than one month preceding the date of filing of application  in Form FTE duly certified by a statutory auditor or Chartered Accountant in whole time practice, as the case may be.  It is to be attached to e-form shall not be older than 30 days preceding the date of application in e-Form  FTE.
  • Copy of Board resolution showing authorization for filing the application.

4.        Important Points/Conditions:

  • Litigation: Fast track exit mode does not mention anywhere that a Company against which litigation is pending cannot apply for striking off the name of the Company from the Register maintained by the ROC. Hence, a Company against which litigation is pending can apply under fast track mode. Further, details of pending litigations are required to be filled up in e-form FTE which has a reference in affidavit format too. Any pending litigations involving the company should be disclosed while applying under this Scheme;
  • NOC is not required from Income Tax / Sales Tax / Central Excise / other Govt authorities. But all directors need to confirm that there are no dues pending against Company with any such authorities. And MCA will send letter confirming that Income Tax has no objection for striking off the name of the said Company.
  • Objections: The applicant Company can reply to the objections raised by RBI, Income Tax Department or any other department. There is no time period specified by ROC for giving reply by the applicant Company. If RBI, Income Tax or the relevant Department is satisfied with the reply given by the applicant Company, ROC will allow the striking off name of such Company.

 5.        Brief Procedure:

The procedure for getting the name of a Company struck off under Fast Track Exit mode is as follows:-

  • A Company eligible to apply for striking off its name needs to apply to Registrar of Companies in Form FTE,
  • The Form FTE should be filed electronically on the Ministry of Corporate Affairs portal and by making payment of Rs. 5000/- as the ROC fees;
  • The Registrar of Companies shall examine the same and if found in order, shall give a notice to the Company under section 560(3) of the Companies Act, 1956 by e-mail on its  e-mail address intimated in the Form, giving thirty days time, stating that unless cause is shown to the contrary, its name be struck off from the Register and the company will be  dissolved;
  • The Registrar of companies shall put the name of applicant(s) and date of making the  application(s) under Fast Track Exit mode, on daily basis, on the MCA portal  www.mca.gov.in, giving thirty days time for raising objection, if any, by the stakeholders  to the concerned Registrar;
  • The Registrar of Companies shall send intimation of such Companies availing Fast Track Exit mode to the office of the Income Tax Department  giving thirty days time for their objection, if any;
  • The Registrar of Companies on being satisfied that the case is otherwise in order, shall strike its name off the Register and shall send notice under Section 560(5) of the Companies Act, 1956 for publication in the Official Gazette.

 6.        Stamp Duty

Stamp Duty is required to be paid on Affidavit and Indemnity Bond as per respective State Stamp Act. As per Delhi Stamp Act, affidavit should be on non-judicial stamp paper of Rs. 10/- and Indemnity Bond on non-judicial stamp paper of Rs. 200/- or franking of equivalent value for both.

7.        Points of consideration post Strike off

Following are the liabilities of directors after striking off the name of the Company by ROC:-

  • to pay and settle all lawful claims arising in future after the striking off the name of the Company.
  • to indemnify any person for any losses that may arise pursuant to striking off the name of the Company.
  • to settle all lawful claims and liabilities which have not come to notice even after striking off the name of the Company.

 ***


310 thoughts on “Fast Track Exit Scheme

  1. recently my pvt ltd company was struckoff by ROC, for not filling ROC docs, my company was formed 2011, recently i paid income tax, but not filed ROC, my question is how can i reactivate my pvt ltd, and is there any issue for me as a director in future? and there is some money in my back account, can i continue my bank account on my PVT LTD? pl advice me

    1. To revive the company, you have to file an application to NCLT under section 252 of the Companies Act 2013. As far as the directorship status is concerned, you will be disqualified to act as a director and for reappointment in any company for a period of 5 years pursuant to Section of 164(2) of the Companies Act, 2013.
      If the money is in the bank account of the Company, you may continue with that account subject to bonafide use for the Company’s business.

  2. Sir I have capital of RS 100000 and cash of 50000 and pl dr. Balance 50000… Sir please tell me how can I show it as nil balance sheet????

    1. In basic accounting there is no concept of NIL balance sheet, therefore, for FTE or Strike off, we prepare a balance sheet whereby the Capital on liabilities side is set off by loss incurred by the Company under the head Profit and Loss (Debit Balance). Meaning all the liabilities have been extinguished by the Company before proceeding with the strike off.
      In your case, till this cash balance is exhausted, you cannot file for strike off.

  3. Sir, how we can know the date of struck off of any company. As we want to open an LLP, the name we want is already reserved by some struck off company. as we want to know whether 20 years has been lapse since their strike off and if is so then this is discrepancy from the part of respective ROC to remove the name of company from database. so how we able to know their exact date of strike off?

    1. As per Section 248 of companies act 2013 Registrar of companies can suo moto strike off the name of the company provided that he has the grounds to believe that the company is not in operation. Similar provisions existed under the previous Act as well. To ascertain the exact date of strike off would be a little difficult considering the fact that you are checking whether 20 years have gone by from the date of strike off. The date is certainly available in the gazette notification but 20 years? You may try to search through the official gazette at egazette.nic.in or may liaise with the jurisdictional registrar of companies (ROC).

      1. Sir, we have a company which has been defunct since incorporation. No business has been carried out and assets & liabilities are NIL. We were thinking of de registering through the FTE route. On checking the master data, we realised that the company status (for e-filing) is Strike Off. Do we still need to apply for de registering through FTE? Please advise. Thank you for your reply in advance.

  4. Sir, in old FTE scheme i applied for strike off in the year 2009 and it is striken off from the ROC for efiling. Now i want to restore the same, whether i can apply for restoration ? Pl. reply asap.

    1. As per section 252, a Company, member, creditor or workman can apply for restoration of Company’s name before expiry of 20 years from the publication of strike off of the Company, under section 560(5), in the official gazette.

  5. Respected Sir,

    How to strike off a company not carrying any business since incorporation. But one of the Directors in not traceable.

    1. As per section 248 of the Companies Act, 2013 read with Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, every Director needs to provide Affidavit and Indemnity Bond for making Strike-off application. You may think of removal of the Director not traceable under the provisions of Companies Act, 2013 and then proceed.

      1. sir,
        on may 27 mca show under process of striff off status.how much time taken by mca in strike off.
        ya mujhe kuchh karna hoga.

  6. Dear Sir/Madamm,
    I have registered a pvt ltd company on Jun 2015. But we have not opened current account in the name of firm, not made any business transaction, also don’t have any assets and liabilities. I also not filled return filling since its incorporation. Now I am planing to strike out/ close the company name under Fast Track Exit. Can I directly go for FTE and closing a company is enough , or we need to do filing also? Since I didn’t opened even current account and not done filing, is there any fine I have to pay? How to process with FTE?

  7. Sir,

    if the company is having share capital 1.8 crore , reserve and surplus 2.1 crore and cash in hand can it go for fast track exit. As co. did not do any transaction for more than last 2 years.
    Also can Company distributes its Reserve among the shareholders of the Company in the meeting conducted for approval for FTE. If Yes, then How?
    Plz let me know .

    Thanks & Regards,
    Karan

    1. There must be a NIL balance sheet to go for strike off. You may go for Voluntary winding up under Regulation 59 of the Insolvency and Bankruptcy Code, 2016 or consult your legal consultant.

    2. Sir
      I have filled stk 2 but my company status shown on master data on mca that default in filing annual return and balance sheet for f.y. 2015-2016 but company had not carry any business transaction and this default is seen after filing stk 2 what I do whether to file annual return and balance sheet for that year or there is any other way to solve this issue kindly reply as soon as possible
      Thanks

  8. Our private company’s name was struck off from the RoC. If we want restoration of name, what are the director’s duties in that case?

    1. There are no specific duties prescribed under the Companies Act, 2013 to be performed by the Board of Directors at the time of restoration of name. However, in general parlance, following roles may be performed by the Directors:
      1. Director must organize all documents & collect information which is required to be submitted to NCLT.
      2. Director must co-ordinate and help the members, creditors or workmen to get restoration of the name of the company .
      3. Director to co-ordinate with NCLT and do such things as may be directed by the NCLT.

  9. Sir,

    A company incorporated in 2009, filed returns till 2010-11, now the company is filing for Strike Off under section 248.

    1. Would the directors still be under disqualification for non-filing of Annual returns after the Strike off?

    2. What would be the effective date for default to calculate the 5 year period? In this case, the default arises from 2013-14 non filing.

    3. If the disqualification continues, is there a procedure to apply for removal of disqualification?

    Please advice.

    1. 1. Director Disqualification cannot be removed by filling Form STK-2. Further Director(s) are not eligible for re-appointment and there office shall be vacated under section 167(1)(a).Therefore Director(s) cannot file any form on behalf of the Company.
      2. Effective date of disqualification shall be 30.10.2014.
      3. Apply for removal of Disqualification on part of Directors by filling Compounding application along with Form DIR-10 and then proceed for filling strike-off application.

    1. As per Section 248 of the Companies Act, 2013 read with Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, “Active status” on MCA site company can apply for strike-off if “the company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application for obtaining the status of a dormant company under section 455″, after extinguishing all its liabilities.

  10. Dear Team,

    According to my view term “vanishing company” means a company, registered under the Act or previous company law or any other law for the time being in force and listed with Stock Exchange which has failed to file its returns with the Registrar of Companies and Stock Exchange for a consecutive period of two years, and is not maintaining its registered office at the address notified with the Registrar of Companies or Stock Exchange and none of its directors are traceable.

    I read your article wherein its mentioned that “If there is pending prosecution against the company and its directors: If the pending prosecutions are only for non-filing of Annual Returns under section 92 and Balance Sheet under section 137 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”.

    Can you please clarify under which section or rule the above criteria is mentioned, since Vanishing Company definition starts with Company, registered under the Act or previous company law or any other law for the time being in force and listed with Stock Exchange, so basically only listed entities will be falling due of not applying for strike off for non-compliance of filing of annual returns and financial statements

    Thanks in advance

  11. Sir i want to close a company which is incorporated in the year 2000 and not filed annual filing from 2013 to till now and there is one open charge on the Company Now we want to close the same. please advise that if annual filing is compulsory to file or we can apply for strike off process without that

    1. As per the provisions of section 249 there is no restriction for the company to do the previous Annual Fillings. However, for Filling Strike off application the liabilities of the Company should be nil. You need to close the Charge (satisfy) on the company before applying for strike-off.

  12. Dear Sir,
    I want to close my company. Can I apply for FTE right now or will I have to wait for STK-2 to become available on MCA website?
    Also, for NIL balance sheet, how do I redeem the sharecapital or the share capital amount is to be shown in the balancesheet?

    1. Form STK-2 is now available on the MCA portal, sorry for late revert.Equity share capital cannot be redeem during the life time of the company and you need to show the same in the balance sheet.

  13. Dear Sir,
    If the Company have a accumulated profits from the last year, can a company pay a dividend to its share holder before apply under FTE?

    1. As per sub-section(2) of section 248 of companies Act,2013, Without prejudice to the provisions of sub-section (1), a company may, after extinguishing all its liabilities, by a special resolution or consent of seventy-five per cent members in terms of paid-up share capital, file an application in the prescribed manner to the Registrar for removing the name of the company from the register of companies. You may give dividend and close the company. Don’t forget to check Dividend Distribution Tax.

  14. Can we go for Removal of Name from ROC as per New Rules Sec 248 of Companies Act,2013, if ROC send a notice on email id that we have not filed financial statement for more than 2 years and ROC is giving the Company a status of Dormant Company.But we are planning to Strike off the name of the company but due to notification of New rules & Non availability of New form.We are not able to file form and the same also send to then via e-mail.

  15. Sir
    Please advise company has received summon for non-filing of return for the previous 3 years. There has been no transaction for last 4 years although there are accumulated losses and loan from directors of the company. The loan is to be repaid by sale of Land & Building to directors. Whether company can apply for dormant company. (Land & Building is pledged with Bank since last 9-10 years). Loan is paid under OTS but NOC not received till date.
    Please advice

  16. I want to shut down LLP and it has not filed its Annual Return and Balance sheet of last year and now its penalty is too much. Is it mandatory to first file its Annual filing? Can we apply for Strike off directly?

  17. hello sir,
    i have pvt ltd co. want to close under FTE.
    we taken tin no from sales tax department for this we deposited amt and show under assets side as receivable. we submit the application for refund but yet to refund but we follow up the department .
    there for till the refund not received we have to open the bank a/c.
    my question is can we go for FTE mode for this situation.
    there is no any assets and liabilities except above .
    and company satisfied all requirement for FTE. plzz help me..

    1. • As per STK-3 the company should not have any assets and liabilities;
      • As per STK-4 the company should not maintain any bank account as on the date of filing strike off application i.e STK-2.

  18. sir, I query related to dissolution of company under FTE. I filed FTE form 04/10/2016 and received a mail from ROC for resubmission of from with in 30 days with following remark that company not eligible for FTE as per affidavit clause 6A. My affisavit clause 6A is- no Asset and liability except cash & bank representing capital & reserve surplus.
    sir, I not given a reply with in 30days and ROC will reject our application for striking off name of company under FTE mode.
    sir, i shown in statement of account is paid up capital and nagative profit.
    sir, please give a reply what will further i should do?
    thank you for reply in advance.

    1. First, resubmission of the form should be within the time bound, in case of delay you may write a letter to Registrar with a reasonable cause of delay in action.
      Secondly, for FTE Company assets and liabilities shall be NIL.

  19. Sir i want to close a company which is incorporated in the year 2006 not filed any annual filing till now. Now we want to close the same. I read the FTE circular i want to know what is the meaning of Compounding Application which is mandatory to file before applying under FTE Scheme.

    1. Any Company, which has not filed its statutory documents i.e. Balance Sheet and Annual Return, has been identified as defaulting Company. Such defaulting Companies can apply under FTE. Specific facts such as Show Cause notices, etc have to be looked at before advising. Nonetheless, Compounding application is not mandatory in case you are going for FTE.
      Compounding application is an application filed by the company to confess non-compliances. Compounding of offences is a short cut method to avoid legal proceedings (NCLT/Court/Registrar/Regional Director).

  20. If company has not filed ITR for last financial year but is making losses and there fore there is no income tax dues, can company still go for FTE without filing ITR?

      1. I think the circular says that there shall be no operation in the last year. So it does not matter whether you earned profit or loss, but the thing is you must not have any activity along with nil balance sheet. So please check that also.

  21. Sir, A private limited company which was strike off through FTE earlier, now want to re-open and restart the business again, is it possible ?

    1. As per sub Section (3) of sec 252 of Companies Act,2013, if a company or any member or creditor or workman thereof feels aggrieved by the company having its name struck off from the register of companies, the Tribunal on an application made by the company, member, creditor or workman before the expiry of twenty years from the publication in the Official Gazette of the notice under sub-section (5) of section 248 may, if satisfied that the company was, at the time of its name being struck off, carrying on business or in operation or otherwise it is just that the name of the company be restored to the register of companies, order the name of the company to be restored to the register of companies, and the Tribunal may, by the order, give such other directions and make such provisions as deemed just for placing the company and all other persons in the same position as nearly as may be as if the name of the company had not been struck off from the register of companies.

      It is concluded from above that company can restore its name and re-start its business after obtaining approval from NCLT. The application for restoration is to be made before the expiry of twenty years from the publication of Notice of Strike off and dissolution.

  22. Sir, I had applied for FTE on 28 June 2016 but due to some error the Form has come for resubmission ,can i apply with same attahments means date etc same now again or we have to prepare all attachments Indemnity Bond,Affidavit etc again.

  23. Dear Sir,

    A company has filed for closure under FTE, but because of some errors ROC has asked to resubmit. Now the directors and shareholders do not want to close the company, rather they want to continue, and later convert to LLP. Kindly let me know if this is possible. Also inform me of the procedure in brief.

    Thank you.

  24. Dear Sir/Madamm,
    I have opened a company I 2010 but no current acc.no assets and libalities
    Had formed even not a single penny transction I made through this company now I got goverment job wanna know can it effect my posting more also let me know how can I close it asap.
    Please help

    1. You will have to refer to Terms & Conditions of your Government Job.
      If your Company is not into operations since the date of its incorporation, you can close the Company any time through FTE (Fast Track Exit) mode.

  25. I have opened a company in 2011 under LLP ACT, 2008… The activities been for 4 to 5 months there after company shut down … But didnt file any of the ROC… Nw i wnt to go FTE…
    What would be the way

    1. As per Section 560 of Companies Act, 1956, ‘LLP’ is not covered under the definition of ‘Defunct Company’ since it is not registered under Companies Act, 1956. Therefore, LLP cannot go for FTE (Fast Track Exit). However, it may apply for Winding Up.

  26. Hello sir/ Maam
    A company received a show cause notice from roc for non filing its annual returns and balance sheet. and that company is non operative from the date of incorporation, can it possible that we file the FTE form directly without making any reply of the notice ?

  27. In case of FTE, out of two directors one of the director is Italian. Affidavit and indemnity bond notarized as per their respective country’s law will be OK or not? In this case stamp duty is required to be paid? And if yes, what is the process? Thank you.

    1. Yes, public company can file FTE form but following co. cannot file FTE Form
      1. Listed Companies
      2. De-listed Companies due to non- compliance of Listing Agreement or any other statutory Laws
      3. Section 8 Companies
      4. Vanishing companies
      5. Companies where investigation / inspection ordered and yet to be taken up or pending
      6. Companies where order u/s 234 has been issued by ROC and reply is pending
      7. Companies where prosecution for a non-compoundable offence is pending in court
      8. Companies accepted deposits which are outstanding or default in repayment
      9. Company having secured loan
      10. Company having management dispute
      11. Company for which filing of docs have been stayed by court or CLB or CG or any other competent authority
      12. Company having dues of Income tax / sales tax / central excise / banks / financial institutions / CG / SG / other local authorities
      13. Companies not having active / dormant status on MCA portal

  28. Dear sir,

    Thanks for reply and one more clarification is that we have share capital of Rs.100000, cash of rs.20000 and p & L debit balance of rs.80000 in last year audited balancesheet. Then should i show same in Statement of Accounts or Nill Balancesheet in Statement of Accounts. Please clarify my doubt sir.

    Thanks in advance

    1. Profit and Loss debit balance shall be shown as negative balance on the Liability side under Reserves & Surplus and cash on the Asset side. Total of Assets and Liabilities balances at Rs. 20,000. You have to show all the details as it is. You cannot show Nil Balance Sheet.

  29. I have incorporated a pvt ltd company on June 2013. Carried out business transaction till FY 15-16. But made a huge loss. We have also not filed annual returns till date. Both the Directors want to close the business. Can we use fast track exit in this situation. If yes, can we get your expert consultancy in doing the same. The company was incorporated in Kolkata. Your early reply is solicited.

    1. Since the company was carrying business transactions till FY 15-16, thus it is not possible to file application under fast track exit scheme because it is a pre condition to filing application under this scheme that the company must not be carrying on business for at least last one year.

  30. Sir,
    1. Is it require to show share capital in statement of account or share capital to be paid before applying for strike off under FTE scheme?
    2. Which section is applicable either section 248 or section 560 at present?
    3. If one of the director is not available to sign the affidavit and Indemnity Bond, then how to proceed further?
    Please reply as soon as possible
    Thanks in advance.

    1. the reply to your query is as follows:
      1. You have to show share capital and Profit & Loss Account (Debit Balance).
      2. Section 560 read with General Circular No. 36/2011
      3. It is mandatory to sign Indemnity bond by all the directors of the company to file form.

  31. I incorporated a company in January 2012 with a total paid up capital of 10000(all paid up). Till date no business has been started. No pan card obtained/registered, no bank account. what shall be my total expenses for winding up/closing the company.

  32. Hello Sir, I have a company that has Share Capital and Reserves on the Liability side and Bank Balance on the Asset side. How should i proceed in FTE? Also can i distribute the entire bank balance amongst the shareholders in their shareholding ratio before the procedure of FTE? Please advise

  33. One of my client is a private limited company. the roc records of the company have been last filed for 2008. The directors now want to close down the company.So can i file FTE without filing the statutory forms upto 2016?

      1. Sir,
        As per FAQ available on MCA portal,
        Can a company identified as defaulting company apply under FTE?

        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.

        So please confirm whether CO. will has to file Statutory forms dues for the F.Y. between 2006 to 2010, before applying under FTE?

        1. YES, company can go for FTE by passing Board Resolution, complying with the FTE condition i.e ASSET& LIABLITIES shall be NIL, NObusiness transaction during the last one year.
          NO, need to make the default good.

  34. we want to apply for FTE, PUC is 1 Lakh and Share Premium account is 5 Lakhs, Rs 6 lakhs is accumulated loss is shown in asset side of B/s , can we file FTE with Share Premium account, please suggest how do we make Share Premium account NIL

    1. You can go for FTE by showing the amount of accumulated loss in liabilities side as a deduction under the head ‘Reserves & surplus’. By this, liabilities and assets will become nil. Please note that now provisions of Companies Act, 2013 are applicable and the companies are struck off under Section 248 of the Companies Act, 2013.

  35. hello sir,
    I have a doubt regarding the directorship of a struck off company.will the director ship be counted for the maximum limit of memebership?

    1. No, the directorship in a struck off company shall not be counted for the maximum limit of membership because the company ceases to exist after its name is struck off from the register of companies.

  36. I HAVE PRIVATE COMPANY. I OPTED FTE SCHEME BUT MY COMPANY HAS CASH BALANCE THEN HOW TO NIL CASH. EITHER I PAY SHAREHOLDER TO DIVIDEND OR I CAN PAY CASH DIRECTLY.

    1. If the company has very limited cash balance than you can pay necessary liabilities like professional fees / consultancy fees for FTE, it might just achieve its target. Further, the company may pay dividend.

      1. Answer to Query No. 3
        • As per MCA guidelines, a company shall have nil assets and nil liabilities for filing FTE application.
        • As per IAS 32, redeemable preference shares are treated as a liability.
        CONCLUSION:
        A company having redeemable preference shares can not apply for FTE.

  37. Sir, if the company is having cash and bank balance in books as well as in real then how the company can use its balance to make it nil so that it can go for FTE.

    1. Fast Track Exit Mode is available only for those companies having no assets and liabilities. Else voluntary winding up procedure has to be followed. However, if the company has very limited cash which it might just use it to meet its expenses like professional fees / consultancy fees for FTE, it might just achieve its target.

  38. I have a pvt ltd co with paid up of 15 Lac. Liability of 16 Lac.( to group co/directors and advance 20 yrs old) Not payable. No assets except bank bal of 5000/- Loss 26 lacs. Co is not in business since last 20 yrs. All uptodate filings done. How can i file In FTE. what will be Income tax liability if any.

    1. For FTE, Companies assets & liabilities shall be NIL. Your company can go for FTE with some prior adjustments and documentations. In your case, Company can go with FTE if the Director creditors will waive off the amount receivable from the Company. NOC to the Company for FTE may be obtained.

  39. Dear Sir
    Please guide me with regard to resolution to be submitted for FTE as the section in Companies Act, 2013 is yet not notified . So resolution as per Companies Act, 1956 will work out.

      1. Dear Sir,

        Can u pls suggest how can we get our Official
        Gazette of company dissolved., we already submitted FTE in 2013

          1. How to see the publication of strike off in egazette it is mention under which ministry/organisation we have a which has been strike off in 2015

  40. There is a Private company want to opt FTE mode to close it but problem is that company taken unsecured loan from its one member (not a director) who is foriegner, now the time company is unable to pay its unsecured loan taken from its foriegner member (except unsecured loan there is no Liabilities),
    Q. whether it will be fall under the criteria company not allowed to opt FTE process for its company having management dispute.

    Your support will be neeful for us

    Thanks

    M.N.7817998658

      1. Dear Sir,

        1.In your earlier reply i have noted that there should be nil assets and liability. Before approval of Striking off from ROC how can i reduce capital?
        2.below is the position
        Eq capital – 1,00,000
        p&l – (50000)
        (debit balance)
        Unsecured loan – 50000
        total cr side=1,00,000

        debtors- 50,000
        loans & adv- 50,000
        total dr side= 1,00,000

        can i writeoff above liabilities & assets.?

        1. For writing off your asset side, recover the amounts from debtors & for liability pay your unsecured loan. Because as per sub section-2 of section 248 of Companies Act,2013, without prejudice to the provisions of sub-section (1), a company may, after extinguishing all its liabilities, by a special resolution or consent of seventy-five per cent members in terms of paid-up share capital, file an application in the prescribed manner to the Registrar for removing the name of the company from the register of companies on all or any of the grounds specified in sub-section (1) and the Registrar shall, on receipt of such application, cause a public notice to be issued in the prescribed manner:
          Provided that in the case of a company regulated under a special Act, approval of the regulatory body constituted or established under that Act shall also be obtained and enclosed with the application.
          It is concluded from above that outside liability should be zero to apply for Striking off the name of company.

  41. Sir, we formed a Pvt ltd company with 2 directors on 2014. From 2014 to 2015 March we didn’t done any business and not filled any Income Tax Return. On 2016 April 6th we received a payment of Rs 3.5 Lacs after deducting TDS . My question is whether we can close the company in FTE mode now.

    1. There are two main criteria:-
      •The company applying under FTE should not have any asset and liability.
      •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.

  42. The company was registered in Pune and Directors are residing in Delhi. Whether Stamp Paper & Notary of Delhi State are valid for affidavit and bond for filling FTE form

  43. Sir,
    I filed the FTE form & it was marked with resubmission. “it is found that in the SOA current asset, loans and advances of Rs.2,72,980/- has been shown”

    I had 3lakh as capital & the amount of 272980 was cash balance and rest was debit balance of pl a/c.

    If iI need to show nill assets & liabilities what shall I put against the capital of 3 lakh, or shall I have a balance sheet of no assets and no liabilities & capital.

    1. Yes, all the documents (affidavits, indemnity bond) are required to be executed by all directors. However in case of death of a Director documents may be executed by one Director. Death Certificate, Letter to ROC, NOC on behalf of deceased Director (by his relative e.g. spouse, parents) may be attached with the Form FTE.

  44. Sir Please define Business operations and Activities… for instance if i have cash balance in asset side so i paid audit fee and maintenance cost, whether these expenses constitute business operation and activities

  45. WHAT IS TH TIME LIMIT WITHIN WHICH ROC HAS TO APPROVE OR NOT APPROVE THE APPLICATION FILED UNDER FORM FTE?

  46. A form of fte has been sent for resubmission with the remarks that pls furnish documents that how each and every account is nil in compare with last B/S filed with mca portal. So sir can we file an optional attachment by saying that it has not carried out any activities during the whole year without giving any supportive evidence and will this optional attachment be helpful.sir plz reply urgently.

  47. In a Company there are 2 directors one is additional and other is regular.

    who is authorize to file FTE form?
    Can additional director Digitally sign the Eform FTE.

    1. Yes, company can be opt for FTE Scheme as both the conditions of FTE are satisfied i.e Company has nil assets & liabilities and it has not commenced any business activity or operation since incorporation

    1. A company dissolved under section 560 can be restored on the Register of Companies by a Court order within 20 years of it being striked off.
      An application for restoration can only be made by the company, member or creditor.

    1. Yes you can file form FTE as both conditions (mentioned below) of FTE are satisfied. The conditions are:

      1. Company should have nil asset & liabilities.
      2. the Company should have not commenced any business activity or operation since incorporation.
  48. A pvt company is there having share capital, security premium account, Dr balance in P/L A/C and cash balance.Thus, the Balance Sheet tallies.Now what could be the probable ways that cash balance is either withdrawn or reduced to zero, so as to proceed further for strike off??

  49. Sir
    Thanks for the information.
    Can a LLP registered on 2014 can also opt FTE Scheme…if not…is their any slimier scheme exists for llp…??

  50. Sir, The company had an MOU with another company and the it is now cancelled and the amount already paid on registration will be received in future only. Also they have an FD. How to apply for stikeoff? Company is not carrying on any business for last 1 year.

  51. A private limited company incorporated in 2013 with 2 directors. NIL filing done till 2014 and no further filings. There has been no activity with the company so far and not even bank account as well. One of the director is willing to close to avoid further complication, but the other director is not ready. The another director is threatening that some fraud has happened in company’s name and is avoiding communication.
    Question:
    1. what should the director (one who is willing to strike off the company) should do in such situations.?
    2. can this situation be brought infront of company law board..?
    3. One of the director is employed in some other private limited company (some non executive job). will there be any issues ..? how to handle this.?

    Your help is much appreciated .

    Thank You

    1. Answers to the questions put by you
      1. The approval of all the directors is mandatory in case Company wants to go to FTE.
      2. yes, this type of situation can be brought before CLB as there are some management disputes.
      3. No there will not be any issue if he is employed in some other Company as he is doing non-executive job.

  52. Sir,
    I HAVE A PUBLIC COMPANY HAVING 4 DIRECTORS WHICH WANTS TO GO FOR FTE AND OUT OF THOSE ONE DIRECTOR IS NOT TRACEABLE & AS PER PROVISIONS AFFIDAVIT 7 INDEMNITY BOND IS REQUIRED BY EACH DIRECTOR. SO, I WANTED TO KNOW IS THERE ANY WAY TO SOUGHT THIS PROBLEM OR CAN WE GO FOR FTE BY USING AFFIDAVITS OF ONLY 2 DIRECTORS.

  53. I have incorporated public Limited company with paid up capital of Rs 7 lakhs ,but said was never bought in by subscribers , and as per previous Companies act public limited companies were required to take certificate of commencement of business now as no capital was brought in by subscribers no commencement certificate was issued by ROC . and company formation expenses were paid by first director from his personal account so FTE benifit can be availed for public limited company

    1. As per the provisions of the Companies Act, 1956, FTE Scheme is an opportunity to non-operating companies (whether public or private) for getting their names struck off at cheaper cost.
      There are some categories of Companies described in the Act, (also mentioned in the blog above), who cannot go for the FTE.

  54. Hey, there is a private company. We want to apply for its strike off under FTE but from the two directors on board, one director is not reachable. what should be done in such a case?

  55. company has not done activity by which it can earn income. Co. has credit opening balance in p&l a/c and also has cash. so such was used for current year expenses and entire fund is over do we can go for fte. co.’s assets and liabilities are nil.

  56. Sir,if a company has not filed annual accounts(i.e,balance sheet & p/l) since incorporation can the company go for FTE.

    1. Any Company, which has not filed its statutory documents i.e. Balance Sheet & Annual Return has been identified as defaulting Company. Such defaulting Company can apply for FTE provided it satisfies all other conditions.

      1. Sir,
        Does the Striking off of a company helps a director to come out of the disqualification under section 164(2)(a) of Companies Act 2013

        1. Once a director comes within the ambit of section 164(2) then he shall not be eligible to be re-appointed as a director or appointed in any other company for a period of five years from the date on which the said company fails to do so.

  57. Sir,
    if the company is having share capital, reserve and surplus and cash in hand can it go for fast track exit. As co. did not do any transaction for more than last year.

    please reply.

    1. Company cannot go for fast track exit because Company is having share Capital, reserve & surplus & cash in hand so Company should set off all the funds before applying for fast track exit.

      1. If the company is having share capital, reserve & surplus and cash in hand, can it go for Fast Track Exit , as Company did not do any transaction for more than last year.

        In connection with the above question: Can company distributes its reserve & Surplus to the shareholders in Board meeting in which FTE is approving.

  58. We want to close a Private Company through Fast Track Exist mode as the company a defunct company.Can we close the company through this mode? and is this scheme still in operation?

  59. Dear Sir/Ma’m,

    One of Private Limited Company

    Liability side
    Paid up capital of Rs. 50 Lacs

    Assets Side
    Cash on Hand of Rs. 20 Lacs

    And there is no other liability and Asset of the Company and also Nil Profit and Loss Account of the company.

    there is no due of any regulatory authority.

    In this such circumstance, Can Company apply for winding up through Fast Track Exit Mode?

    How to take step against the Cash on hand in Assets side because Company winds up through FTE, i.e.”Nil Asset and Liability” its mandatory but in this case, Cash on hand is availed in Assets Side how to take action against the same.

    Please give your opinion.

    Thanks,

    Ketankumar Savaliya

    1. Before going through the FTE scheme Company must have a nil Balance Sheet i.e. no asset & liabilities. Company must have to set of all its fund before going for the fast track exit scheme for winding up of the Company.

    2. Please confirm how to pay back share capital to shareholders? so as to show NIL Assets and Liabilities.. there is only one way of returning the capital it is reduction. u/s66. Please confirm if there is any other way. This will make the FTE totally meaningless.
      thanks

      1. In basic accounting there is no concept of NIL balance sheet, therefore, for FTE or Strike Off, we prepare a balance sheet whereby the Capital on liabilities side is set off by loss incurred by the Company under the head Profit and Loss (Debit Balance). Meaning all the liabilities have been extinguished by the Company before proceeding with the strike off.

  60. sir
    How should we have to make statement of affairs. Do we have to show share capital?? If we show share capital and we have to show something in assets side to make balance sheet tally. If we do so, then there will be mismatch in Form FTE and Statement of affairs as the form don’t allow to put value in any items of SOA except Capital item. Kindly Suggest what to do???

  61. Mam,
    Can you provide me information about procedure of Closing a LLP incorporated on May 2015. Is it necessary that one year must have been lapsed from the formation of LLP? Can we opt for filing form 24 without going for winding up proceedings?

      • YES, it is necessary that one year must have been lapsed from the date of formation of LLP for winding up.
        E-form 24 is required to be filed for striking off the name of the LLP. (Rule 37 (1) (b))
        One cannot proceed with Form 24 because form 24 is to be filed where the Company is not carrying its operations from the last one year or more.
  62. I have company incorporated in 2011. Since then no operations started. Now want to close the company. Can you please advise how much it will cost and is there any govt charges to be paid.

    1. A company can be closed down under FTE subject to the condition that its assets and liabilities are Nil and it has not commenced business after incorporation or at least one year has elapsed after the last business transaction. The scheme is still operational. If the requisite conditions are satisfied, the winding up takes 5 to 6 months. Fees for filing FTE form is Rs. 5000/- over and above the professional fees if you avail such service.

  63. I had incorporated a company on September 2014, which i want to close down, as i read your article. The company has not done any business since incorporation and it doenst not have any aseets and liabilities. The company has not filled any forms also since incorporation. Please guide me. How much time will it take ?

  64. Sir,
    One of the directors is having directorship in a company, which is struck off by MCA. However, the name of that struck off company needs to be removed from the directorship of that director.
    Please let me know whether the same can be done or not and if yes, how can it be done. since I did not get any specific e-form on MCA website for doing the same.

    1. There is no need to remove name of company from the director’s record as the status of such company shall be shown as ‘Struck Off’ if and when it is struck off in the records of MCA. No form is required to be filed for this purpose.

  65. I founded my company in Dec, 2012. I have filed the IT returns but not filed the ROC’s until last month (ie. Nov 2015). No business transaction has occurred and it has 0 assests and liability. The questions I have are,
    – How much is the fine for the ROC filing delay ?
    – Can i apply for FTE ? And approximately how long will it take ?

    1. You should go for FTE because there is no business transaction has occurred &Company has no assets & liabilities.

      Preparation of Application under FTE shall not take much time, if done efficiently, it can be filed with the MCA in 3 to 6 working days. Once the form is filed and user clarifications(some queries are raised by MCA after examining the application), if any, addressed properly, the status of FTE changes to ACTION INITIATED FOR STRIKE OFF. Once this status appears, there is nothing further you have to do about it. The Ministry generally takes 1 to 2 months to approve the form thereafter. Lately, it has been our experience that the Ministry is taking too much time for approval and in few cases, more than 6 months.

    1. A company can be wound up under FTE subject to the condition that its assets and liabilities are Nil and it has not commenced business after incorporation or at least one year has elapsed after the last business transaction. The scheme is still operational.

  66. Sir,

    One of the directors is having directorship in a company, which is struck off by MCA. However, the name of that struck off company needs to be removed from the directorship of that director.

    Please let me know whether the same can be done or not and if yes, how can it be done. since I did not get any specific e-form on MCA website for doing the same.

  67. In one of your replies you have mentioned that the company can not pay its shareholders for the shares subscribed by them without following the proper procedure of winding up; then how any suplus left be distributed under the fast Track Exit Mode.

    1. The basic condition for opting Fast Track Exit is ‘Nil Balance Sheet’, i.e., the capital of the company is equal to the liabilities of the company. So, if the Company has any surplus, it does not qualify for FTE.

  68. I have a pvt ltd co,closely held by family mambers,
    Assets have been sold’
    no liabilty or debtores
    no buisnes
    audited balansheet avaiable
    wants to close under FTE
    How long it will take
    what are the expenditure involved.
    how long it will take
    in the mean time funds can be disbursed among directors ?

  69. I wanted to know if we need to file the previous Income Tax Returns before applying for FTE. Further, can I also know the consequences for non filing of the same?

  70. With respect to the requirement of a nil balance sheet,is it compulosry to have it audited?what if the company has current assets,bank balance and share capital?if we have to clear it off as mentioned in one of the comments,wont it be a requirement that such a balance sheet needs to be audited before being certified by the authorities?

    1. Nil Balance sheet does not mean company with nil Share Capital. But if the company has current assets and bank balance as well, it should go for Voluntary winding up through the High Court route.

  71. Our is a 100% subsidiary of a foreign company and we have share capital of Rs. 10Lac and we have sufficient balance in bank to refund. Whether we can pay the money to shareholder and make balance sheet NIL and go for FTE mode.Please note company is Foreign Subsidiary company.

  72. The Company wants to strike off U/S 560 of CA 1956. There is unsecured loan given by directors and directors agreed to waive of the said loan. Could you please tell me what will be implication under Income Tax with supporting provision/judgement.

    Regards
    Raman Jha
    9899285491

  73. Our company has received a share application money amounting to 2.5 crores and shares were not allotted within 180 days. Hence the application money needs to be refunded. Company does not have any source to refund, the share application money is under the liabilities side of balance sheet. Can we go for FTE?

    1. Hello sir/ Maam
      please help me in this regard.
      a company receives a notice from roc for filing its annual returns and balancesheet. company fulfill all its requirements, can it is possible to a pass resolution on a date for FTE before the date of compliance with the requirement of notice.

  74. Our company is looking to wind up 2 subsidiaries. Out of which one has received share application money amounting to 2.5 crores but shares were not allotted within 180 days. Hence, as per the provisions, the company has to refund the share application money. Now there is no source for the company to refund the application money and the same is reflected in balance sheet. Can we go for FTE? please advise

  75. Is FTE is applicable under Companies Act, 2013? We have a Pvt. Ltd. Company incorporated in 2007,but it is not in operation, so we decided to dissolve the company. Can we go for FTE method?? Please advice

  76. Hi. I have a company incorporated in Feb-14. It is having a bank account with nil balance. Is it necessary to close the bank account before filing for FTE. Kindly reply asap. Thanks

    1. Essential requirements for a company to go into FTE is that the Company should have a nil balance sheet and a statement of accounts certified from a CA should be attached. If these two things are present then the company can move forward with the FTE Process.

  77. heloo! i just wanted to know if accounts has nt been filed to ROC since incorporation thats 3 years back is it compulsory to still file along with the application form of FTE?

    1. wanted to know if returns has not been filed since incorporation i.e since 3 years then is it compulsory to file along with the FTE form?

  78. If a company has not filed its balance sheets and annual returns for more than 14 years and currently is in under dormant status, and it also have CHARGES that are showing on portal and wants to go for FTE then is it mandatory to file all the earlier balance sheets and annual returns or they can directly file the CH-4.
    Pls reply as early as possible.

    1. Before going for FTE, the company though does not have to file its previous returns, but will still have to satisfy all its charges. Without satisfying the existing charges, a company cannot go for FTE.

  79. Sir,
    One of the Director of our company is NRI. So, how can a notary & stamping of his Affidavit & Indemnity Bond to be done?
    Do we have to first get it stamped and then send these documents there for notary?
    Or a POA holder of that director can sign the affidavit & indemnity bond on his behalf & can get notorised them here only.
    Pls reply as early as possible.

    1. In case a Director is NRI, Indemnity Bond and Affidavit may be notarized as per their respective country’s law. And yes, a POA can sign the affidavit & Indemnity bond in favour of such Director and get a written letter from director authorizing the same to POA holder.Please note that the POA is to be notarized as per the home country law and after the documents has arrived in India, it is to be stamped here.

  80. Hello,
    I have registered a private limited company in nov 2013 but The company has not been operative.Even I haven’t opened a bank account for it.Can I opt for fast track mode to close my company.Do I have to pay any other cost other than 5000/-.plz help me in this regard….

  81. if co. has not filed its balance sheet and annual returns for more than 10 years,because it had not been transactions And currently having dormant status then if company want to go IN FTE then is it mandatory to filr all the earlier balancesheets and annualreturns.

    1. No, it is not mandatory to file the earlier balance sheets and annual returns.

      What is important is that there should have been no transactions in the company for the last 1 year before it approaches with the FTE application.

  82. Thanks for the informative article. I need your advice here, I have registered my company in May 2011 and till now no ROC filling has done so far,no annual returns and no balance sheet filling as well, my company current account has no transaction from last 8 months, I want to close my company with less penalty , please advice me the best way to close down either in fast exit or something else. Thanks Anand

    1. The important point to be noted for FTE is that the company shall not be involved in any business operations for at least 1 year before applying for FTE. Please ensure that the bank transaction you are talking about is not business related. If it is not, then you can go for FTE and close down the company immediately.

  83. I have a company which was formed with paid up capital of Rs 37.50 Lacs but afterwards the capital was not actually brought in by the promoters and there is no transaction in the bank Statement. Now i want to wind up that company under FTE. Pls advise.

  84. For nil balance sheet, i have losses more than capital. i.e. i have paid up capital of Rs. 1 lac and losses of Rs. 1.10 lacs. What to do for making it nil. and ROC require waiver letter for it. Please suggest

  85. Dear sir/mam,
    May I kindly ask you how to closed company bank account by transferring money to foreign holding company? that is the only asset pending under our balance sheet.
    If this has done then we can go ahead under FTE scheme to strike of the company as there will be NIL asset and liabilities.
    Thanking you in advance!

  86. My Co Paid up Capital Rs 1 Lakh, Loss Rs 1.60 Lakh & Liability Rs 0.60 Lakhs Hou to make Assets & Liability Nil.
    N M Bansal
    09322338652

  87. I started a company with share cap.of 1 lack in the year 2012 December but till to day i have not opened any bank a/c and no business activity. I want to close company with fast track. what is the procedure?

  88. As Basic Condition says there should not be one year of Operation.,.. but in our case the company has sold all its assets and patents to different company, our client are no more into operations… can we go for FTE

    Plz let me know its very urgent

    1. As long as the conditions stated above are satisfied (nil assets/liabilities & no operations since one year of last activity), the company can go for FTE.

  89. This is a well-thought-out article, not just another copy-paste garbage that we mostly find in the web. By religiously responding to individual queries you are doing a great service which will surely be rewarded with the business you rightfully deserve.

  90. Sir, we have INR 100,000 share capital i.e. subscriber contribution as liability and equal amount in bank, company is inoperative since incorporation, how to file statement of accounts and repay the subscriber contribution. thanks

  91. is it necessary to right off capital by showing a debit balance of p/l by equal amount? is it not possible to right it off from assets?

  92. sir,

    our company is having capital of Rs.1,00,000/- & cash on hand of Rs.80,000/- & Rs.20,000/- as profit & loss a/c dr. balance & company is not having any business operations since incorporation.

    can our company go for filing fast track exit mode or else we have to show entire thing as misc. expenditure to the extent not written off

    please advise me.

    regards

  93. Hello all,
    I have quest, Company X is incorporated in 1990 and its current status as per MCA web portal is dormat.

    The company has availed a Secured loan in 2001 which has been satisfied by the company during the year 2005 but the company has not filed the returns for satisfaction of loan.

    The MCA Web portal is still showing the charges registered under company.

    Can we now file under FTE.

    Note: The company does not have any asset and liabilities as on date.

    Kindly reply.

  94. Maam, I was told that the scheme ends Dec 31, 2014 at 12:00 PM by my auditor. But unfortunately, one of my current accounts is dormant and it requires 3 days to activate it as I am right now in a different state. My auditor is sort of pressurizing me that I should travel and do it by tomorrow morning. Even if I take a flight, I can’t reach the base branch before 7PM tomorrow. Please let me know what is the last date for filing under the Fast Track Exit Mode.

  95. Plz let me know that how can a company having 100000 capital & 87000 current assets & 13000 P&L debit balance, file FTE form . Do i have to show whole 100000 as P&L debit balance or any other method is there.

    1. Please note a company can make application under Fast Track Ext Scheme only when:
      • The company applying under FTE should not have any asset and liability.
      • 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.

  96. Dear sir,

    I am a director of the company(Incorporated in 2011) which has not filed any annual returns.Now we are planning to opt for FTE Scheme.Is there any need to do all annual filings before going for FTE Scheme.

  97. Nice Blog,

    Can you please let me know whether CLSS for FTE is still in existence.MCA is denying to grant immunity for FTE application under CLSS with 25% of fees to be paid(refer 6(xi) general circular 34 dated 13/08/2014.Reply soon.

  98. We could not make the break even for last two years, and stopped the operations and have no clients left.
    We are facing a loss and got a notice form RoC, should we go for FTE but its costing us nearly 25k form an authorized CA, but we are not left with that amount to apply what can be the best solution we can do..
    The minimum fee for FTE is 5k, and that need to be submitted,

    Should we go for FTE or ignore notice, and
    what can be the legal effects for the same.

    1. At the outset, you must note that Notice from RoC should not be ignored at all. By ignoring, you might end up paying a lot more than what you have to at this point of time.

      My advice is that you should go for FTE. We can help you to reduce the cost significantly if you are willing to do some work yourself.

  99. Hi.. We want to close company by filing FTE Scheme. Company has not worked from last 5 years and not filed any ROC returns and ITR from 2002. Further, DIN 3/ DIR 3 not filed by company. No director details available on ROC, Status of company is Dormant as per ROC site.
    What should be the correct way to proceed with closure of company with FTE scheme.

    1. Dear Yogesh,
      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 No. GNL-1 for normalizing. Further Directors of such companies are debarred from filing any document till they make the default good. Such defaulting companies can apply under FTE.
      For Further Information, Please follow the following link:-
      http://www.mca.gov.in/MCA21/faq_fte.html

  100. Kindly guide once affidavit and indemnity bond executed by director within how many days one have to file FTE form at roc website as client have come to me today and papers are notarised on 10/10/14 (will it will b invalid as 30 days have passed)
    Please reply urgently if possible

    1. 30 days being lapsed after notarization of the affidavit bond and indemnity bond doesn’t nullifies its validity. An affidavit is good as long as the person taking the oath believes the statement is still of fact or the truth. So for filing an application for FTE, it can include an affidavit and indemnity bond executed and notarized before 30 days or more. It is only the statement of account which should not be older than 30 days.

      1. Dear sir/ I have one query, in FTE asset and liabilities should be nil then how to show incorporation exp stationary exp and other general exp coi on 05/03/2014 under company act 1956

  101. A company incorporated on 1-12-2010, did no business. Just opened a bank account. Did not filed any return. Now withe CLSS scheme being there please confirm:
    1. Do we need to file the pending returns before applying under Fast track exit scheme?
    2. If no, then why CLSS mentions about making of application under fast track exit scheme in clause 6(xi)b
    3. If we are file an application under FTE do we need to apply before 15-11-2014 or we can file application even after 15-11-2014.

  102. Thank you so much for your reply ..
    Just one confirmation – the Banks in India will take the signed documents for franking right?

  103. One Query – two of my Directors are NRIs. How notary & Franking of Affidavit & Indemnity Bond to be done? whether I have to first get it stamped and then send the documents there for notary or here the banks will do frnaking afterwards? please suggest a fastest mode..

    1. Indemnity bonds shall be duly notarized. In case of foreign nationals and NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law. And within 3 months of the document reaching India, the same shall be stamped in India according to the process prescribed in the Stamp Act.

  104. i want to apply for fast track exit scheme and company not doing any business activities from last year but company have assets so plz tell me any other way for FTE without sales assets of the company.

    1. One of the conditions preceding the FTE application is that the company should be having NIL assets and liabilities. In your case it is advisable to sell all the assets and utilize the money on various expenses of the company.

  105. I am one of the director and the other director resighned long time ago. Hence at present only one director. Company has not done any buisness since its incorpotration.No Assests and liablities right now. No balance sheet and annual return ever filed.

    How to proceed under FTE scheme-2014
    Please advise

  106. Hello.
    The company is a private limited company incorporated since 1996 and has last filed annual returns for 2010-11.
    No operational activity since then.

    Does the company need to File the ROC return before filing ROC return?
    Also, if yes, then Can at a later stage after filing of FTE 2014, ROC ask for filing the annual returns from 2011-12 and so on?

  107. Dear all
    Company incorporated on 25/03/2014 can apply for FTE having nil asset liabilities and not doing any business since incorpotion

    1. Yes, both conditions required for eligibility under FTE are satisfied i.e. The company applying under FTE should not have any asset and liability.
      The company should not have commenced any business activity or operation since incorporation

  108. is FTE mode stll applicable under Companies Act,2013 and what is the procedure for the same plz rply asap……

  109. Hi
    As new companies act 2013 is applicable now, so draft to be attached in FTE forms will also be changed or we can attach same drafts with same lines mentioning section 560 of companies act 1956. ?? pls clarify any body as MCA has not given any new form , no changes made in form or attachements. So what to do ?

  110. Shweta, Sorry for delayed reply.

    As you know, as per MCA circular no. 36/2011, a general statement is given that :
    “The company shall disclose pending litigations if any, involving the company while applying under FTE.”

    In that scenario, I think you can apply for FTE with appropriate clause in the affidavit disclosing the fact on pending FEMA compounding matter.
    .
    Malleshwari

  111. One query… can a company whose FEMA compounding is in process under RBI can apply under Fast track exit Scheme.??
    Thanks

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    1. Dear Sir,

      I want to apply for fast track exit. there is 150000 capital in the liability side of balance sheet and there is 130000 cash in hand and 20000 loss in the asset side of balance sheet.
      Please tell me what can i do with 130000 cash in hand??

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