Procedure to windup a limited company under Fast Track Exit Scheme (FTE)
- Affidavit from all the existing Directors ( Rs 100 Stamp paper min)
- Indemnity Bond from all Directors or collectively ( Rs 100 Stamp paper is recommended)
- 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.
- Form FTE duly filled
Filing Fee for eForm FTE - Rs 5000
- Applicant company should have NIL Asset and Liability.
- Applicant should not have carried on any business since incorporation OR is not carrying any business activity for preceeding one year
Which companies cannot apply for FTE Scheme ? ( Just an illustrative list)
- Listed Companies
- Companies that have been de-listed
- Section 25 Companies
- Companies under Inspection/ Investigation pending in any court
- Companies having outstanding public deposits or Secured Loan
- Companies having dues towards income tax, sales tax, central excise,banks and FI’s or CG/ SG/or any local authority
Source: General Circular No.36/2011 dated 7 June 2011 issued by Ministry of Corporate Affairs, Government of India
Closing a company is more cost sensitive than forming a company and this scheme will surely help the small defunct companies.