Who can apply?
(i) Has not commenced any business activity or operation since incorporation; or
(ii) Is not carrying over any business activity or operation for last one year before making application under FTE.
(iii) Defunct company which has active status or identified as dormant.
Who can’t apply?
The fast track exit mode is not being extended to the following companies namely:-
i. Listed companies;
ii. Companies that have been de-listed due to non-compliance of Listing Agreement or any other statutory Laws,
iii. Companies registered under section 25 of the Companies Act, 1956;
iv. Vanishing companies;
Listed with Stock Exchange which, has failed to file its returns with 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.
v. Companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;
vi. Companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court;
vii. Companies against which prosecution for a non compoundable offence is pending in court;
viii. Companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;
ix. Company having secured loan;
x. Company having management dispute;
xi. Company in respect of which filing of documents have been stayed by court or Company Law Board (CLB) or Central Government or any other competent authority;
xii. Company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.
Process:
1) Application under FTE.
2) Either Director will sign or Authorised Professional will digitally sign.
3) If the applicant name is not available in the database of directors maintained by the Ministry, the application shall be accompanied by certificate from a Chartered Accountant in whole time practice or Company Secretary in whole time practice or Cost Accountant in whole time practice along with their membership number, certifying that the applicants are present directors of the company.
4) Disclose pending litigations if any, involving the company while applying under FTE.
5) Pending prosecutions are only for non-filing of Annual Returns under section 159 and Balance Sheet under section 220 of the Companies Act, 1956, such application may be accepted provided the applicants have already filed the compounding application.
6) 100% Government companies, if no Board is in existence, an officer not below the rank of Deputy Secretary of the concerned administrative Ministry may be authorized to enter his name and other details in Form FTE.
Docs Involved:
i. An affidavit.
i. An Indemnity Bond.
iii. Foreign nationals and NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law.
iv. A Statement of Account annexed at Annexure C, 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,
v. Resolution.
Registrar of Companies in respect of striking off the name of company shall be final.
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