FAST TRACK EXIT (FTE) AS PER COMPANIES ACT, 2013.

[Durga Bansal]

Dear Friends,

Greetings of the Day!

Whether the rules have been published in the official gazette w.r.t. FTE as per sections 248 to 252 of the Companies Act, 2013? If a pvt. company was incorporated in 2001 and no directors details have been filed since its incorporation and no annual return has been filed since its inception then whether the company can file the FTE form directly with the ROC or whether it has to file the directors details and annual returns first and then only it can go for the FTE? 

What may be the estimated cost in the entire process?

What is the difference between FTE as per Companies Act, 1956 & the Companies Act, 2013?

Thanks & Regards,

CS DURGA BANSAL

[Peer Mehboob]

Please note that e-form FTE has been withdrawn w.e.f 26/12/2016, only resubmission is allowed. E-form FTE is no longer available for fresh filing. However, corresponding e-form under CA, 2013 i.e. STK-2 is under development, so you have to wait till STK-2 is introduced. 

There is a difference between the provisions of striking off under Companies Act, 1956 and removal of name of companies under Companies Act, 2013:

1. Sec.560 was the only section for provisions of striking off of the company by ROC. This section has been replaced by Sec.248 to Sec.252 of the Companies Act, 2013.

2. Sec.560 used to empower ROC only for striking off the defunct company. However, subsequently, Fast Track Exit Scheme, 2011 was introduced for the company desirous for getting its name struck off could apply under this scheme. This scheme was applicable for defunct companies and dormant companies. 

However, in the new notified provisions of Sec.248 to Sec.252, the provisions of earlier FTE scheme has also been added. Now, as per Sec.248 ROC suo moto can initiate action to strike off a defunct company or the defunct company after distinguish its liabilities and passing of Special Resolution can apply for removal of its name from Registrar of companies by filing form STK-2 alongwith requisites attachement in the manner as prescribed.

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[Durga Bansal]

Thank you so much for your response sir. Can you please tell me what will be the procedure for FTE if no directors detail is filed with ROC. Also no annual return was filed since its inception in 2001. 

Whether as per section 560 of companies act, 1956 mere a certificate from a practicing professional w.r. t. the directors as the "following persons are directors of the company on the date of passing of the resolution" will be sufficient? Also, whether the company is not required to file the annual returns for the earlier years?

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D*Bansal*

[Peer Mehboob]

As I told you, now no fresh filing under FTE is possible. You have to go for STK-2, when it will be introduced by MCA. However, if director is not having registered Digital signature, copy of duly filled form STK-2 signed by authorised director shall be attached with the form STK-2. Regarding annual filings, company may go for striking off its name by filing STK-2. However, ROC may ask for filing the same but you can proceed.

details of directors of the your company would have been available on MCA Portal. that is sufficient for filing form and Sec.560 is no more effective as on date, please proceed for striking off with the new notified provisions of Sec.248 to Sec.252 of the Companies Act, 2013.

[Durga Bansal]

ok sir, thanks a lot.