FAST TRACK EXIT SCHEME FOR CLOSING OF DEFUNCT COMPANY

Ministry of Company Affairs (MCA). MCA has issued Guidelines for “Fast Track Exit (FTE) Mode” to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956 in time bound manner. As per MCA circular No. 36/2011 dated 7 June 2011.
One Person Company in India must at the end of each financial year file an annual return with the Ministry of Corporate Affair and Income Tax Return with the Income Tax Department to maintain compliance. For newly incorporated One Person Company, the Annual Return is due within 18 months from date of incorporation or 9 months from the date of closing of financial year, whichever is earlier. In India, normally the financial year starts on April 1st and end on 31st March. So One Person Company’s annual return would be due on September 30th.

What You Will Get In This Offer

• Financial Statement
• Statutory Audit Report under Companies Act, 2013
• Tax Consultancy by a Chartered Accountant
• Income Tax Return Filing
• Annual ROC Filing
• Free tax due-diligence check
• OTHER: Every Private limited shall comply with

Other Services

• ESI Return
• EPF Return
• TDS Return
• FCRA Return
• VAT-TIN Return
• Service Tax Return
• Central Excise Return
• Works Contract Return
• Business Tax Registration
• Salary Return
• NRI Tax Return
• Investor Return Filling
• Corporate Tax Returns
• Business Return Filling
• Corporate Filings
• Change Directors
• Company Annual Filing
• Registered Office Change
• Change in Name of Company

Documents Required Under Fast Track Exit Scheme

Applicant is required to file an application in the prescribed Form FTE along with prescribed fee of Rs. 5,000/. The attachments to Form FTE are as follows:-

• An affidavit sworn by each of the existing director(s) of the company 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 and has not carried on any business since last one year, as the case may be.
•       An affidavit 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. An Indemnity bond shall be duly notarized. In case of foreign nationals and NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law.
• Board resolution showing authorization for filing the application.
• On affidavit for each director Rs. 10/-
• Indemnity Bond, duly notarized, 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
• Statement of Account prepared as on date not prior to more than one month preceding the date of filing of application in Form FTE duly certified by a statutory auditor or Chartered Accountant in whole time practice, as the case may be. It is to be attached to e-form shall not be older than 30 days preceding the date of application in e-Form FTE.
• Stamp required is as under (Value of stamp duty is based as applicable in Delhi):-
• On Indemnity Bond for each director Rs. 200/- for other states relevant stamp act need to be cross verified for applicable stamp duty.

Following are the main criteria for making an application under FTE:-

Main criteria of Fast Track Exit Scheme
 
• The company applying under Fast Track Exit Scheme should not have any asset and liability.
• The company should not have commenced any business activity or operation since incorporation or at least one year must has been passed since last business activity or operation.
• Company need not require regularizing its filling of Annual form.
• Company should have active status on Ministry of Company Affairs (MCA) portal.
• If any stock/machinery it may be written off.

Information Required Fast Track Exit Scheme
 
• Date of Board meeting, CIN and PAN,
• Whether the company is listed or not,
• Details of director(s), Managing Director, manager, secretary of the company,
• Brief description of main objects of the company as per Memorandum of Association,
• Brief about main business last carried out.
• Whether there are litigation(s) pending against or involving the company,
• Information and Documents on any changes in Directorship or Shareholding in the company,
• Copy of DIN Letter/Pan Card/Passport/duly self-attested by the director & attested by PCS.

COMPANIES TO WHOM FAST TRACK EXIT SCHEME IS NOT APPLICABLE:

Main criteria of Fast Track Exit Scheme

• Listed Companies
• De-listed Companies due to non- compliance of Listing Agreement or any other statutory Laws
• Section 25 Companies
• Vanishing companies
• Companies where investigation / inspection ordered and yet to be taken up or pending
• Companies where order u/s 234 has been issued by ROC and reply is pending
• Companies where prosecution for a non-compoundable offence is pending in court.

Information Required Fast Track Exit Scheme
 
• Company for which filing of docs have been stayed by court or CLB or CG or any other competent authority
• Company having dues of Income tax / sales tax / central excise / banks / financial institutions / CG / SG / other local authorities
• Companies not having active / dormant status on MCA portal
• Company having secured loan
• Company having management dispute
• Companies accepted deposits which are outstanding or default in repayment
Important Points/Conditions under Fast Track Exit Scheme:
• Litigation: Fast track exit mode does not mention anywhere that a Company against which litigation is pending cannot apply for striking off the name of the Company from the Register maintained by the ROC. Hence, a Company against which litigation is pending can apply under fast track mode. Further, details of pending litigations are required to be filled up in e-form FTE which has a reference in affidavit format too. Any pending litigations involving the company should be disclosed while applying under this Scheme;
• NOC is not required from Income Tax / Sales Tax / Central Excise / other Govt authorities. But all directors need to confirm that there are no dues pending against Company with any such authorities. And MCA will send letter confirming that Income Tax has no objection for striking off the name of the said Company.
• Objections: The applicant Company can reply to the objections raised by RBI, Income Tax Department or any other department. There is no time period specified by ROC for giving reply by the applicant Company. If RBI, Income Tax or the relevant Department is satisfied with the reply given by the applicant Company, ROC will allow the striking off name of such Company.

Ishtar Traders and Consultants LLP offer some of the most customized solutions for our clients related to the Fast Track Exit mode. Under this scheme the companies which have become defunct can easily exit from the industry. Our team of experienced Chartered Accountants and other consultants are proficient in assuring our client with the required solutions, irrespective of the capital which is authorized.
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