Business Plan - Venture Care Closing a ltd company Guide on Fast Track Exit | Page 2

The above type of companies (given in the last slide) which does not choose Fast Track Exit
Scheme, could suffer following consequences:
There is a very strong possibility that, for the companies which are inoperative and not
carrying on any mandatory annual compliances under Companies Act, 2013, could receive
notice from Registrar of Companies, under which jurisdiction the Registered office of the
company falls, for not complying with annual filing.
In such a situation, Directors of the company shall have to appear before the court and
explain the reason for non-filing of documents with Registrar of companies.After that,
the company will have to complete their annual filing and other compliances and present a
proof of such filing to the court. On non-complying with the directions of the court,
directors may have to suffer huge penalties, imprisonment, etc.
PROCEDURE TO BE FOLLOWED FOR FAST TRACK EXIT SCHEME:
The Company shall file an application in prescribed form FTE online with the Registrar of
with fees of Rs. 5000/-
ATTACHMENTS:
 In affidavit 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;
 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 duly certified by CA in practice or auditor of the company.
 Board resolution showing authorization for filing the form.
 In case, the application in Form FTE, is not being digitally signed by any of the director
or Manager or Secretary, a physical copy of the Form duly filled in, shall be signed
manually by a director authorized by the Board of Directors of the company and shall
be attached with the application Form at the time of its filing electronically;
 In case, the applicant name is not available in the database of directors maintained by
the Ministry, the application shall be accompanied by certificate from a Chartered
Accountant in whole time practice or Company Secretary in whole time practice or
Cost Accountant in whole time practice along with their membership number,
certifying that the applicants are the present directors of the company. In such cases,
the applicants shall not be asked to file Form-32 and Form DIN-3.
 The company shall disclose pending litigations if any, involving the company while
applying under FTE.
 If the pending prosecutions are only for non-filing of Annual Returns and Balance
Sheet 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