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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.
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One Person Company in India must at the end of each financial year file an annual return with the Ministry of Corporate Affair and Income Tax Return with the Income Tax Department to maintain compliance. For newly incorporated One Person Company, the Annual Return is due within 18 months from date of incorporation or 9 months from the date of closing of financial year, whichever is earlier. In India, normally the financial year starts on April 1st and end on 31st March. So One Person Company's annual return would be due on September 30th.
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:-
Following are the main criteria for making an application under FTE:-
COMPANIES TO WHOM FAST TRACK EXIT SCHEME IS NOT APPLICABLE:
Important Points/Conditions under Fast Track Exit Scheme:
Rajput Jain & Associates offer some of the most customized solutions for our clients related to the Fast Track Exit mode. Under this scheme the companies which have become defunct can easily exit from the industry. Our team of experienced Chartered Accountants and other consultants are proficient in assuring our client with the required solutions. Irrespective of the capital which is authorized.
What is Fast Track Exit mode?
Fast Track Exit mode is introduced by Ministry of Corporate Affairs for giving opportunity to non-operating companies for getting their names struck off from the records of Ministry of Corporate Affairs. Fast Track Exit mode is an easy mode of closing non-operating companies at cheaper cost with lesser formalities under section 560.
What is defunct Company?
Defunct Company means a Company registered under the Companies Act, 1956 (hereinafter referred to as "the Act") which is not carrying over any business activity or operation:
What is Vanishing Company?
Vanishing Company means a Company which fulfills following conditions:-
Which Companies can apply under fast track exit mode?
Following Companies can apply under fast track exit mode for striking off its name from register of Registrar of Companies:-
However, all companies which want to apply shall have ‘active’ or ‘dormant’ status on MCA portal.
Why Fast Track Exit mode is best Choices for company closer?
Following Case Fast Track Exit mode is best Choices for company closer:
Which form is required to be filed with ROC for making application under fast track exit mode?
Form FTE is required to be filed with ROC for making application under fast track exit mode.
Which documents are required to be attached to the e-form FTE?
Following documents are required to be attached to e-form FTE:-
What is the process for filing application under fast track exit mode?
Following is the process for filing application under fast track mode:-
What process ROC will initiate after filing application under fast track exit mode?
ROC will initiate following process after filing application under fast track:-
Is there any stamp duty required to be paid on any documents?
Stamp Duty is required to be paid on Affidavit and Indemnity Bond as per respective State Stamp Act. As per Bombay Stamp Act, (Maharashtra) affidavit should be on non-judicial stamp paper of Rs. 100/- and Indemnity Bond on non-judicial stamp paper of Rs. 200/- or franking of equivalent value for both.
Is there any Attestation / Notary required on Affidavit and Indemnity Bond?
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.
How many directors etc. are required to sign various documents required to be filed with Registrar of Companies?
Signatures of Managing Director / Director / Secretary etc. is required as follows:-
|Sl. No.||Name of the document||Signature requirement|
Digital Signature Certificate (DSC) of any one of the following who is authorized to sign as per Board Resolution:-
Certified True Copy signed by any one of the following:-
Signed before authorities as mentioned in answer to below Question by all existing directors of the company.
Signed before authorities as mentioned in answer to below Question by all existing directors of the company.
|5||Statement of Accounts||
The fast track exit mode is silent on how many directors should sign the Statement of Accounts. So, it is advisable to take signatures of 2 directors, including Managing Director, if any. It is also required to be signed by Secretary, if any.
To be certified by any one of the following:-
Is Director Identification Number (DIN) mandatory for filing application with ROC?
DIN is not mandatory for Managing Director or Director of the Company making application under fast track mode. Details of Managing Director or Director can be filled up for inserting Permanent Account Number (PAN) or Passport Number instead of DIN.
Is DSC of Director is mandatory for filing online application with ROC? Or can a Company file application with ROC without having DIN and DSC of any of its directors?
DSC of Director is not mandatory for filing online application i.e. e-form FTE with ROC. If DSC is not available take the print out of e-form FTE and obtain manual signature of director authorized to sign it as per Board Resolution and attach the same to e-form FTE.
Which information is required to fill up the application (Form FTE) and other documents required to be attached to it?
Following information is required to fill up the application (e-from FTE):
1. Information for Affidavit / Indemnity Bond:-
2. Information for Affidavit / Indemnity Bond:-
Can a Company against which litigation(s) are pending can go for the fast track exit mode?
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.
Can a Company pending income tax / sales tax / central excise / other Govt dues go for the Fast track exit mode?
No. A Company which has not paid income tax / sales tax / central excise / other Govt dues cannot make application under fast track exit mode. Format of affidavit mentioned in the form FTE and e form FTE requires confirmation from directors that there are no dues as mentioned above are pending.
Whether NOC from Income Tax / Sales Tax / Central Excise / Other Govt authorities required for filing application with ROC?
No. 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.
Is email address appearing in Master Data needs to be updated before filing application under Fast Track Exit Mode?
There is no need to update Master Data with current email address. The email address mentioned in e-from FTE will not be pre-filled by MCA. It can be typed by the applicant.
In case status of the Company is non-active on MCA portal, can it make active and apply under fast track exit mode?
If the ROC has sent notices to the Company under Section 560 (1) or 560 (2) or 560 (3) of the Act, then such Company needs to make an application to the Registrar of Companies, in writing, that it proposes to strike off the name of the Company by following the procedure under Fast Track Exit mode and submit the documents requisite under fast track exit mode. Further procedure will be initiated by the Registrar in this regard.
What are the liabilities of directors after striking off the name of the Company by ROC?
Following are the liabilities of directors after striking off the name of the Company by ROC:-
Whether Companies having some current assets or bank balance can apply under Fast track exit mode?
No. There is requirement of having NIL Balance Sheet.
Private Limited Companies are those types of companies where minimum number of members is two and maximum number is two hundred. A private limited company has the limited liability of members but at the same time it has many characteristics as those of a partnership firm. A private limited company has all the advantages of partnership namely flexibility, greater capital combination of different and diversified abilities, etc., and at the same time it has advantages of limited liability, greater stability and legal entity. In this sense, a private limited company stands between partnership and widely owned public company. Identifying marks of a private limited company are name, number of members, shares, formation, management, directors and meetings, etc., The maximum number of directors shall have to be mentioned in the Articles of Association. In the grand of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary to the other public company.
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