Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Aviation Law
 Bangladesh Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Pakistan laws
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscribe now and receive free articles and updates instantly.


Published : June 11, 2016 | Author : Deepti Bajpai
Category : Company Law | Total Views : 2609 | Unrated

Deepti Bajpai
Currently pursuing, BA, LLB (Hons), IV Year, Dr. Ram Manohar Lohiya National Law University, Lucknow

Fast Track Exit (“FTE”)

Registrar may strike off the name of a ‘defunct company’ from the register subject to certain conditions under the FTE mode. Procedure for FTE is given under Section 560 of the Companies Act, 1956 (“CA,  1956”).

GuidelinesforFTEmodefordefunctcompaniesunderCA, 1956 were notified vide General Circular Number 36/2011 dated June 07,2011. Theseguidelines havebeen implemented with effect from 3rd July,2011. The corresponding provisions for FTE in the Companies Act, 2013 are section 248 and 252. They have not been notified by the MCA.

Definition of a defunct company

Any company will be called as “defunct company” for the purpose FTE, which has nil asset and liability and
A. has not commenced any business activity or operation since incorporation; or
B. is not carrying over any business activity or operation for last one year before making application under FTE.
Any defunct company which has active status or identified as dormant by the MCA, may apply for getting its name strike off from the Register of Companies.

The FTE mode is not applicable to the following:

a. listed companies and companies that have been de-listed due to non-compliance of Listing Agreement or any other statutory Laws,
b. companies registered under section 25 of the CA, 1956;
c. vanishing companies;[1]
d. companies which are subject to investigation or inspection;
e. companies against which prosecutions are pending the court;
f. companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
g. company having secured loan ;
h. company having management dispute;
i. company in respect of which filing of documents have been stayed by any competent authority;
j. company having dues towards taxes or banks and financial institutions or any other authority.

Procedure to be followed by Applicant

Board resolution
Any defunct Company has to pass a board resolution for applying for the FTE and authorize one of the directors to sign any documents and affidavits.

Closing bank accounts
The Company shall close all bank accounts as the same has to be declared in the affidavit to be attached to the Form.

Application – Form FTE

a. Any defunct company shall then make an application in the Form FTE, annexed electronically on the MCA portal namely www.mca.gov.in accompanied by filing fee of INR 5,000/-.
b. If Form FTE is not being digitally signed by director /Manager/ Secretary, a physical copy of the Form duly filled in, shall be signed manually by a director authorized by the Board of Directors of the company and shall be attached with the application Form at the time of its filing electronically.

Form shall also be certified by a Chartered Accountant /Company Secretary/ Cost Accountant.
If the director’s name in not present in the database of directors of MCA, the application shall be accompanied by a certificate from Chartered Accountant/ Company Secretary /Cost Accountant, certifying that the applicants are present directors of the company. In such cases, the applicants shall not be asked to file Form 32 and Form DIN 3.

Pending litigations

Company is also required to disclose pending litigations against the Company. If the pending prosecutions are only for non-filing of Annual Returns under and Balance Sheet, such application may be accepted provided the applicants have already filed the compounding application. However, steps for final strike of the name of the company will be taken only after disposal of compounding application.

The Form shall be accompanied by
a. Affidavit.
Form shall be accompanied by an affidavit, which should be sworn by each of the existing director(s) of the company before a First Class Judicial Magistrate/Executive Magistrate/ Oath Commissioner/ Notary, to the effect that the company has not carried on any business since incorporation or that the company did some business for a period up to a date (which should be specified) and then discontinued its operations, as the case may be.[2]

b. Indemnity Bond
Form shall further be accompanied by an Indemnity Bond, duly notarized, to be given by every director individually or collectively, to the effect that any losses, claim and liabilities on the company, will be met in full by every director individually or collectively, even after the name of the company is struck off the register of Companies.[3]
Please note: Stamp Duty is required to be paid on Affidavit and Indemnity Bond as per respective State Stamp Act.

c. Statement of Account
Company shall also file a Statement of Account, prepared as on date not prior to more than one month preceding the date of filing of application in Form, duly certified by a statutory auditor/ Chartered Accountant.[4]

Procedure to be followed by the Registrar

On receipt of application he shall give a notice under Section 560(3) giving thirty days time, stating that unless cause is shown to the contrary, its name be struck off from the Register and the company will be dissolved.

Inviting objections

The Registrar shall put the name of applicant and date of making the application on the MCA portal www.mca.gov.in, giving thirty days time for raising objection, if any, by the stakeholders to the concerned Registrar.

Notice to tax and other relevant authorities

The Registrar shall inform Income Tax Department about companies availing FTE mode and ask for objections within thirty days. RBI, SEBI, etc have to be notified in case of Non-Banking Financial Company and Collective Investment Management Company.

Striking off name

The Registrar of after expiry of such time mentioned above shall strike its name off the Register and shall send notice under section 560(5) of the CA, 1956 for publication in the Official Gazette and the applicant company shall stand dissolved from the date of publication of the notice in the Official Gazette.

Restoration order

Under section 560(6) an application for restoration can be made by any aggrieved company, member or creditor. A company dissolved under FTE can be restored on the Register by a Court order within 20 years of it being striked off.

[1] “vanishing company” means a company, registered under the CA, 1956 and listed with Stock Exchange which, has failed to file its returns with Registrar and Stock Exchange for a consecutive period of two years, and is not maintaining its registered office at the address notified with the Registrar or Stock Exchange and none of its Directors are traceable.
[2]Annexure-A, Guidelines for FTE mode for defunct companies under CA,1956,please see: http://www.mca.gov.in/Ministry/pdf/Circular_36-2011_07jun2011.pdf
[3]Annexure-B, Guidelines for FTE mode for defunct companies under CA,1956,please see: http://www.mca.gov.in/Ministry/pdf/Circular_36-2011_07jun2011.pdf
[4] Annexure C, Guidelines for FTE mode for defunct companies under CA,1956,please see: http://www.mca.gov.in/Ministry/pdf/Circular_36-2011_07jun2011.pdf


1 2 3 4 5
Rate this article!     Poor

Most viewed articles in Company Law category
Globalization & its impact on Indian Economy: Developments and Challenges
Winding Up of a Company
Retrenchment under Industrial Dispute Act, 1947
Dissolution of partnership firm
Articles of Association & Alteration of Articles
ADR Mechanism in India
Which employees do not fall under the ambit of Industrial Dispute Act, 1947
Demerger under Company Law
Directors & Their Liabilities
Corporate Personality
Position of a promoter in establishing a Company
Prevention of oppression & mismanagement
Appointment, Disqualification And Liabilities Of Directors of A Company: A Legal Perspective
Remuneration of Directors
Position of Directors In A Company
Corporate Social Responsibility
Most recent articles in Company Law category
Applicability of Limitation act on Insolvency and Bankruptcy Code
Insider Trading laws in India in comparison with the laws in US and UK
How to convert One Person Company to Private Limited Company
Risk Management and Corporate Management
Procedure for declaration and payment of interim dividend by the board of directors
Holding first Meeting of Board of Directors of a Company Under Companies Act 2013
One person company
Payment of compensation for loss of office of MD or WTD or Manager
Appointment of a director other than a retiring director in the General Meeting
Principle of Lifting the Corporate Veil
Banking Ombudsman Scheme 2006
Articles of Association
Distinction between Companies Act 1956 and Companies Act 2013
Role of Proxy Advisory Firms In Corporate Governance
Need For Corporate Social Responsibility
Fast Track mergers

Article Comments

there are no comments...

Post Your Comments


Your comments

Note : Your email address is only visible to admin, other members / users cannot see it.

You can use following FXCodes

BOLD : [b]
Italic : [i]

[b] Legal Services India [/b] is a [i]nice website[/i].
[url= http://www.legalservicesindia.com/article/ ]click here to visit.[/url]

Legal Services India is a nice website.
Click here to visit


Note : Currently, user comments are moderated and will be posted only after approval.

Please login or register a new free account.

Random Pick
Clear cut view about prevalent pathetic condition of politics in india

» Total Articles
» Total Authors
» Total Views
» Total categories

Law Forum

Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers


India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3