MCA - Fast Track Exit mode for defunct companies
THERE are a number of companies, which are registered under the Companies Act, 1956, but due to various reasons, they are inoperative since incorporation or commenced business but became inoperative or defunct later on. Such companies may be desirous of getting their names struck off from the Register of Companies maintained by Registrar of Companies.
As per section 560 of the Companies Act, Registrar of Companies may strike off the name of companies on satisfying the conditions therein. As per present practice, a company desirous of getting its name struck off has to apply to Registrar of companies in e-form 61. All pending statutory returns are required to be filed along with e-form 61.
To give an opportunity for fast track exit by a defunct company, for getting its name struck off from the register of companies, the Ministry has decided to modify the existing route through e-form – 61 and has prescribed new Guidelines.
‘Defunct Company' is one which has nil asset and liability and
++ has not commenced any business activity or operation since incorporation; or
++ is not carrying over any business activity or operation for last one year before making application under FTE.
Any defunct company desirous of getting its name strike off the Register under Section 560 of the Companies Act, 1956 shall make an application in the Form FTE, annexed electronically on the Ministry of Corporate Affairs portal namely www.mca.gov.in;
If pending prosecutions are only for non-filing of Annual Returns under section 159 and Balance Sheet under section 220 of the Companies Act, 1956, such application may be accepted provided the applicants have already filed the compounding application. However, steps for final strike of the name of the company will be taken only after disposal of compounding application by the competent authority.
The Company shall also file a Statement of Account in Annexure C, 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.
MCA General Circular No. , Dated : June 7, 2011