Proceedure for closing an inoperative private company

Fast Track Exit Mode for Defunct Companies

Initially Ministry had issued Easy Exit Schemes to give an opportunity to the defunct Companies to get their name strike off from the records of ROC. And it was founded that there are numerous Companies which are yet desirous of getting their names strike off from the Register of Companies maintained by Registrar of Companies. Presently the procedure for striking the name of the Company is very detailed and time consuming, the Company has to file all its pending statutory returns and apply under form 61.

FTE Guidelines in Brief:

The FTE Guidelines is an improvement over the previous Easy Exit Scheme (EES) and will provide an opportunity to the defunct companies to Fast Track Exit with minimal compliance.

The Defunct Company desirous of getting its name strike off from the Register of Companies has to apply online in form FTE along with a fee of Rs. 5000/- and file Affidavit, Indemnity Bond by every directors and Statement of Accounts as on date not prior to more than one month preceding the date of filing of application.

Effective date:- The Fast Track Exit Guidelines for fast exit of Defunct Companies will be effective from 3^rd July, 2011.

Salient Features of FTE Guidelines:

FTE Guidelines are applicable to a defunct company. For the purposes of the FTE Guidelines, any company will be called as "defunct company", which has nil asset and liability and

has not commenced any business activity or operation since incorporation; or
is not carrying over any business activity or operation for last 1 year before making application under FTE.

Any defunct company which has active status or identified as dormant by the MCA may apply for getting its name struck off from the ROC.