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.
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.
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/-
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 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|
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
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.
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.