Company closure procedure — Take the fast track exit from your business

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Company closure procedure — Take the fast track exit from your business

About (FTE) Fast Track Exit in the New Companies Act, 2013

It is a fast process to close a company without adopting a lengthy procedure for company closure by passing special resolution, applying to high court, appointment of liquidator and so on…… which may take not less than six months and also it is a very expensive process which cannot be affordable to small companies and companies which are  sick companies.

Closing an Ltd Company :  
The Ministry has issued Guidelines for Fast Track Exit Mode to give the opportunity to the defunct companies to get their names struck off from the register under section 560 of the Companies Act, 1956.

The most important benefits of Fast Track Exit Scheme are as below;
1. Neither an inoperative Companies which are not generating any revenue nor doing its annual filing are have got a new option to close the company without paying huge additional fees.
2. It is a short process in which a company can be closed without huge documentation.
3. It is a time-saving procedure.
WHO SHALL GO FOR FAST TRACK EXIT : 
The small companies which are
· Inoperative
· Not doing any annual or other filings with Registrar of Companies
· Operating in loss and lost hope of making profit
· The company do not have any object or continue with it
Companies not eligible to file form FTE:
(i) listed companies;
(ii) Companies that have been delisted due to non-compliance of Listing Agreement or any other statutory Laws,
(iii) Companies registered under section 25 of the Companies Act, 1956 or section 8 of Companies Act 2013
(iv) Vanishing companies;
Who are eligible to apply under for Fast Track Exit Scheme:
1. Companies having assets and liabilities as NIL
2. Company is inoperative since the date of Incorporation or 1 Year or more
3. The company has closed down its bank account.

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