Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Fast track exit (fte) mode under companies act 2013

Kunal Bijlani (Head of Finance) (30 Points)

02 June 2014

Hi Friends, can anyone please guide me if Fast Track Exit (FTE) Mode is still available under companies Act 2013?

If yes, can a loss making company that has not traded in 2 years with unpaid Unsecured Loans (from Shareholders) apply? (no Secured Debt or Bank lending)

Thanks in advance for your help.

Reply
Follow
Share

7 Replies

akanksha (CA Final Student) (325 Points)
Replied 02 June 2014

No such companies cannot apply. The assets and liabilities should be nil. Specially the loans.

1 Like

Aakansha Jain (Company Secretary in Practice) (32 Points)
Replied 02 June 2014

I think you can go for FTE mode still. The only thing is that u need to clear the loans outstanding, close the bank account with nil assets & liabilities.

And attached herewith the circular for the same which is still applicable

Attached File : 1223841 1322770 circular 36 2011 07jun2011.pdf downloaded: 1274 times

1 Like

Kunal Bijlani (Head of Finance) (30 Points)
Replied 02 June 2014

Originally posted by : Aakansha Jain
	I think you can go for FTE mode still. The only thing is that u need to clear the loans outstanding, close the bank account with nil assets & liabilities. And attached herewith the circular for the same which is still applicable

Thanks a lot Aakansha.

In the circular you posted it mentions in section 1(e) that FTE is not available to companies that: (ix) have secured loans and

(xii) dues to Income Tax..financial institutions, etc

...it does not anywhere mention that companies with outstanding 'unsecured loans' can not apply...or am I reading this wrong?

Aakansha Jain (Company Secretary in Practice) (32 Points)
Replied 02 June 2014

You r correct, u need to make your balance sheet nil before applying FTE.

Suggested to pay all debts & close the Bank Account of the company.

veena (Working in Consultancy Firm) (46 Points)
Replied 12 September 2014

Please confirm if a company can go for FTE if it hasn't filed annual filing forms from incorporation (2006) till date. Or is it required to file all the forms before filing FTE. Company does not have assets & liabilitiees, and has not done any business.