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Which Companies can apply for strike off under FTE?

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Sakshi Shah

FTE
Start & Run Business
Winding Up
Last updated on May 5th, 2021

Companies have an option to strike off their name from the register of ROC in a quick and easy way under the FTE (Fast Track Exit) Scheme.

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

Which Companies cannot apply for strike off under FTE ?

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

FAQs

Can a Company against which there are pending litigations apply for strike off under FTE (Fast Track Exit Mode)?

The company against which there are pending litigations can apply for strike off under the Fast Track Exit Mode. However, the company must disclose the pending litigations in Form STK-2

Can dormant company apply for strike off?

As per Section 248(1)(C), a Company that has made an application to ROC for obtaining ‘Dormant’ status cannot apply for strike off. Therefore the company needs to obtain ‘Active’ status first to apply for strike off.

Can a company still trade when dissolved?

 When a company is dissolved, it ceases to exist. It cannot still be trading.


Got Questions? Ask Away!

  1. Hey @Joe_Fernandes ,

    Here’s a brief process for filing an application under FTE ?

    1. Companies who can apply for strike off under FTE The eligible company can make an application if it falls under any of the specified conditions.
    2. The company can apply for strike off by filing Form STK-2 electronically on the MCA Portal Fill in the information in Form STK-2. Read to know about 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 the documents should be duly attested by a professional to Form STK-2. Here is an article to help you with the list of documents to be attached with Form STK-2.
    5. The company must pay a ROC Fees of Rs.5000 on filing Form STK-2 The registrar of companies would undertake the following actions:
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. The Company would be DISSOLVED From the date of publication in the Official Gazette.

    Hope this helps!