What is FTE or Fast Track Exit Mode Scheme under Companies Act, 2013?

Author
By Sakshi Shah on February 18, 2019

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. Under FTE, there are lesser formalities and a cheaper cost to remove the name of the company from the register of MCA.

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 Companies can apply for strike off under FTE?

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.

  • Form STK-2 can be downloaded from the MCA Portal
  • A list of specified documents need to be attached with the form duly attested by the directors of the company [Read More: Which documents are required to make application for strike off under FTE ?]
  • Any pending litigations involving the company must be reported under the FTE process
  • A director authorised by the board should sign Form STK-2 with a digital signature
  • A whole time practising Chartered Accountant or Cost Accountant or Company Secretary should certify Form STK-2
  • The applicant should file Form STK-2 electronically on the MCA Portal by paying the prescribed fee

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. Form MGT-14 can be downloaded 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?

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 NameDescriptionAmount
Form STK-2Application by company to ROC for removing its name from register of CompaniesRs. 5000
Form MGT-14Filing of Special Resolution passed by ShareholdersRs. 300

Note:

  • A form can be filed using the PayLater option. Under the Paylater option, payment can be made within the time limit of 5-7 days based on the due date of the paylater challan
  • In addition to the above fees, Late Fee or Penalty can also be charged