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What is FTE or Fast Track Exit Mode Scheme under Companies Act, 2013? (Discontinued in 2016)

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Sakshi Shah

Form MGT-14
Form STK-2
FTE
MCA
Start & Run Business
Winding Up

To simplify the process of strike off of non-operating companies, MCA i.e. Ministry of Corporate Affairs introduced a scheme called FTE i.e. Fast Track Exit Mode. The Fast Track Exit Scheme is for faster disposal of the companies. It gives an opportunity to the defunct companies to struck off from the register under the Companies Act, 2013.

Which Companies can apply for strike off under FTE?
All the companies are not directly eligible for the application of FTE. Read to know whether you can apply for Strike off under FTE
Read More
Which Companies can apply for strike off under FTE?
All the companies are not directly eligible for the application of FTE. Read to know whether you can apply for Strike off under FTE
Read More

The objective of FTE Scheme is to provide an option to the inoperative companies to strike off their name with least documentation. The process is simple, easy and quick.

Which Form do I file for making application under the Fast Track Exit Mode?

To make an application under FTE, the applicant has to file Form STK-2 for removal of the name of the company.

Note: A Special Resolution needs to be passed by the shareholders of the company and is to be attached in Form STK-2, thus Form MGT-14 must filed too. You can download Form MGT-14 from the MCA Portal and needs to filed electronically on a payment of Rs.300/-

What is the process for strike off of a company under FTE i.e Fast Track Exit Mode?
The procedure for making application to strike off the Company's name under FTE.
Read More
What is the process for strike off of a company under FTE i.e Fast Track Exit Mode?
The procedure for making application to strike off the Company's name under FTE.
Read More

How much Fee do I need to pay for making application under the Fast Track Exit Mode?

Under FTE, there are two forms that need to be filed by the applicant. The applicant should file the form electronically on the MCA Portal along with payment of prescribed fee.

Form Name Description Amount
Form STK-2 Application by company to ROC for removing its name from register of Companies INR 10,000
Form MGT-14 Filing of Special Resolution passed by Shareholders INR 300

Note:

FAQs

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:
1. A Company has failed to commence its business within one year of its incorporation; or
2. A Company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455 of the companies act, 2013

How old can be the Statement of Accounts which is required to be attached to the application?

Statement of Accounts certified by a chartered accountant to be attached to e-form shall not be older than 30 days preceding the date of application in e-Form STK-2.

How long does it take to Strike off of a company?

It usually takes at least 3 months for a company to be officially dissolved, but the length of time can vary considerably if the process is complex. Generally, however, a company will cease to exist no less than 3 months of the winding-up notice being advertised in the Gazette.

Got Questions? Ask Away!

  1. Hey @Sofiyah_Valiante ,

    Following companies can apply for strike off under FTE:

    1. A company that has not commenced any business for one year from its date of incorporation. OR
    2. A company that has not carried any business activity for a period of two immediately preceding financial years and has not made any application to attain the status of a dormant company under Sec 455 of the Companies Act 2013

    The following companies cannot apply for strike off under FTE:

    1. Listed companies
    2. Vanishing companies
    3. Companies registered under Section 25 or Section 8 of the Companies Act 2013
    4. De-listed companies due to non-compliance of listing agreement or any other statutory laws
    5. Companies where investigation or inspection has been ordered but prosecutions are pending in court
    6. Companies where prosecution for an offence is pending in court
    7. A Company having an outstanding loan secured or unsecured
    8. A Company having management dispute
    9. Companies accepted deposits which are outstanding or default in repayment
    10. Companies whose application for compounding is pending before the competent authority. It may be for compounding the offences committed by the company or any of its officers in default
    11. The Company for which filing of documents have been stayed by court or Company Law Board (CLB) or Central Government or any other competent authority;
    12. Company with pending dues of income tax or sales tax or central excise or banks and financial institutions or government departments or local authorities
    13. Companies, where notice u/s 234, 206 or 207 of the Companies Act, 1956 has been issued by ROC and reply is pending
    14. If at any time in the previous 3 months the company:
    • Has changed its name or shifted its registered office from one state to another
    • Has made a disposal for value of property or rights held by it immediately before carrying on business for earning a profit in the normal course of trading
    • It has made an application to the Tribunal for sanctioning of a compromise or arrangement and the matter has not been finally concluded
    • It has engaged in an activity other than the one which is necessary for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company or complying with any statutory requirement
    • Is being wound up under Chapter XX of this act or under the Insolvency and Bankruptcy Code, 2016

    Hope I have resolved your query!