Procedure of Fast Track Exit Scheme

1.           Procedure of Fast Track Exit Scheme :-

Ø   Convene Board Meeting to Pass a Board Resolution for name strike off the Register under Section 560 of the Companies Act, 1956

Ø  The company shall disclose pending litigation's if any, involving the company while applying under this Scheme.

Ø   Under Fast Track Exit Scheme shall be accompanied by an affidavit annexed at Annexure- A, which should be sworn by each of the existing director(s) of the company before a First Class Judicial Magistrate or Executive Magistrate or Oath Commissioner or Notary, to the effect that the company has not carried on any business since incorporation or that the company did some business for a period up to a date (which should be specified) and then discontinued its operations, as the case may be;

Ø  Under Fast Track Exit Scheme shall further be accompanied by an Indemnity Bond, duly notarized, as annexed at Annexure B, to be given by every director individually or collectively, to the effect that any losses, claim and liabilities on the company, will be met in full by every director individually or collectively, even after the name of the company is struck off the register of Companies;

Ø  Under Fast Track Exit Scheme shall further be accompanied by Statement of Accounts as on one month prior to the date of making the application. It has to be prepared by the Statutory Auditor of the Company or any CA in Full time practice.

Ø  In case of foreign nationals and NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law.  

Ø  Under Fast Track Exit Scheme, the Form FTE, shall be certified by a Chartered Accountant in whole time practice or Company Secretary in whole time practice or Cost Accountant in whole time practice;

The application received by the ROC pursuant to the FTE Guidelines will be processed by ROC and key steps of the process are as under:

Ø       ROC shall examine the application and if found in order, shall give a notice to the company under section 560(3) of the Act giving time of 30 days stating that unless cause is shown to the contrary, its name be struck off from the Register and the company will be dissolved;

Ø  The name of applicant and date of making the application under the FTE Guidelines shall be displayed on the MCA portal www.mca.gov.in giving time of 30 days for raising objection, if any, by the stakeholders to the concerned ROC;  

Ø      In case of company like Non-Banking Financial Company, Collective Investment Management Company which are regulated by other Regulator namely RBI, SEBI, respectively, the ROC, at the end of every week, shall send intimation of such companies availing of the FTE Guidelines during that period to the concerned Regulator and also an intimation in respect of all companies availing of the FTE Guidelines that period to the office of the Income Tax Department giving time of 30 days for their objection, if any.  

    

Ø  The Registrar of Companies immediately after passing of time as above and on being satisfied that the case is otherwise in order, shall strike its name off the Register and shall send notice under sub-section (5) of section 560 of the Companies Act, 1956 for publication in the Official Gazette and the applicant company shall stand dissolved from the date of publication of the notice in the Official Gazette.