What is the process for strike off of a company under FTE i.e Fast Track Exit Mode?

Author
By Sakshi Shah on February 18, 2019

FTE i.e. Fast Track Exit Mode is the fastest way to strike off the name of a non-operative company from the register of companies under the Companies Act 2013.

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

The process of filing an application under FTE is as follows:

  1. The applicant company is eligible to make an application if it falls under any of the specified conditions. [Which Companies can apply for strike off under FTE?]
  2. The company can apply for strike off by filing Form STK-2 electronically on the MCA Portal [Which information needs to be filled in Form STK-2 for strike off under FTE?]
  3. A director authorised by the board must sign Form STK-2 with a digital signature. It also must be certified by a Chartered Accountant or Cost Accountant or Company Secretary in whole time practice.
  4. The company must attach various documents duly signed by the directors and attested by a professional to Form STK-2. [Which documents are required to make application for strike off under FTE?]
  5. The company must pay a ROC Fees of Rs.5000 on filing Form STK-2
  6. The registrar of companies would undertake the following actions:
    • The registrar shall examine the application. If the application is valid, he shall send a notice to the registered email of the Company. The notice would mention that the name of the company would be struck off from the register of companies. The Company has a time limit of 30 days for raising an objection.
    • The registrar shall then list the name of the applicant company and the date of making the application under FTE on the MCA Portal. The stakeholders can raise an objection within a period of 30 days.
    • The registrar shall also intimate the regulating authorities of Income Tax, VAT, GST, Excise, Service Tax etc. The concerned authorities can raise an objection within a period of 30 days.
  7. If the registrar does not receive any of the above objections, he would strike off the name of the company from the register, He will also issue a notice for publication in the Official Gazette.
  8. The Company would be DISSOLVED from the date of publication in the Official Gazette.

FAQs

1. What are the liabilities of directors of the company after the company is struck off from the register of MCA?

  • To pay off the losses that may arise to a person after striking off the name of the company
  • To pay all the liabilities and lawful claims that may arise after striking off the name of the company

2. What shall the company do if an objection is raised for striking off its name from the register of MCA?

When a company applies for strike off under FTE, any of the stakeholders or concerned authority like Income Tax, Excise, SEBI, RBI or any other government department can raise an objection.

The company can reply to the objections raised. If the objecting party is satisfied with the reply, the ROC would strike off the name of the company. There is no specified time limit for submitting reply against an objection.