Fte mode

Let there is a A Private Limited company. The Company has been incorporated in the year 2011. The Status of the Company is "ACTIVE" as per the MCA portal. The Company has not started any business since incorporation. Now the Company is willing to Strike Off its name from the ROC under Fast Track Exit Mode (FTE) mode.

There are two Directors in the Company. The two Directors are also the only two Members (Subscribers to the Memorandum) of the Company. First Director are the Subscribers of 8000 Shares (8000*Rs.10) and another Director are the subscribers of 2000 Shares (2000*Rs.10). But the members had never paid the subscripttion amount.

One of the conditions of the FTE is Nil Assets and Liabilities of the Company. Can the Company go for FTE mode.

did the members paid in the subscriptttion capital

Read more at: /forum/closing-a-private-ltd-company-206115.asp#.UMwKavJ34iU

Dear Sondip,

The Company will have to show a NIL Balance Sheet, that is, 1Lac Capital and 1 Lac you can write it off as loss on the assets side. Also, that an indemnity bond and affidavits have to be prepared by the DIrectors and file the requisite form along with requisite fees.

As regards subscripttion amount, I presume that your question relates to payment of subscripttion money by the subscriber to the Memorandum.

To my knowledge, the subscripttion money should be paid by the subscriber who subscribes to the Memorandum, immediately on incorporation of the Company, for the reason that minimum paid-up capital should be in existence upon incorporation of the company to ensure compliance with the companies act, 1956, which prescribes min. paid up capital for pvt. / public companies.

Further, share allotment cannot be made unless the share application / subscripttion money is received from the applicant / subscriber.

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Sourav Chatterjee

Riddhi Thakkar

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