Company closure procedure - Take the fast track exit from your busine How to close a limited company -Fast track closure | Page 3

act into force.
liquidation of company
Fast track Exit
This is the most awaited procedure that got active again on 5 th April 2017. This procedure
was introduced in Section 248 of Companies Act 2013.
Fast Track exit can be done in two ways:
Suo Moto by Registrar
The registrar may strike off the name of Company on its own if:
Company has failed to commence any business in a year of its incorporation
The company is not carrying out any business or Activity for preceding 2 financial
years .
The Registrar sends a notice (STK-1) of his intention to remove the name and seeks the
representation of Company in 30 days.
Voluntary Removal of Name using Form STK 2
Once the form is filed, the Registrar has power and duty to satisfy him that all amount due
by the company for the discharge of its liabilities and obligations has been realized. ROC
can also issue a show cause notice in case of default in filing returns or other obligations.
After above formalities, ROC issues a public notice and strike off the name of Company
after its expiry.
Companies that cannot file for voluntary strike-off:
A company cannot fill the form STK 2 at any time in the previous 3 months if the
company has:
Has changed its name or shifted its registered office from one State to another;
Has made a disposal for value of property or rights held by it, immediately
Has engaged in any other activity except the one which is necessary or expedien t for
the purpose of making an application under that section, or deciding whether to do
so or concluding the affairs of the company or complying with any statutory
requirement;
Has made an application to the Tribunal for the sanctioning of a compromise .
closing a ltd company
liquidation of company