Fast Track Exit mode is introduced by Ministry of Corporate Affairs for giving the opportunity to non-operating companies for getting their names struck off from the records of Ministry of Corporate Affairs. Fast Track Exit mode is an easy mode of closing non-operating companies at cheaper cost with lesser formalities under section 560
These are the business entities who can not apply for fast-track exit scheme by the Government of India.
- companies that have been de-listed due to non-compliance with Listing Agreement or any other statutory Laws,
- companies registered under section 25 of the Companies Act, 1956 or Section 8 of Companies Act 2013
- vanishing companies : a company, registered under the Companies Act, 1956 and listed with Stock Exchange which, has failed to file its returns with Registrar of Companies and Stock Exchange for a consecutive period of two years, and is not maintaining its registered office at the address notified with the Registrar of Companies or Stock Exchange and none of its Directors are traceable.
- companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court; companies, where the order has been issued by the Registrar and reply thereto, is pending or where prosecution if any, is pending in the court;
- companies against which prosecution for a non-compoundable offense is pending in court; companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;
- the company having secured loan;
- the company having management dispute;
- the company in respect of which filing of documents have been stayed by court or Company Law Board (CLB) or Central Government or any other competent authority;
- the company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.
Which are companies eligible for FTE?
- Companies which has Nil Assets and Liabilities and
- shall have ‘active’ or ‘dormant’ status on its Master Data.
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