If you want to close your business, it can be done by making an application to ROC for closure of defunct company. Provided that, it should be at-least a year old and the creditors of the company should be willing to let you close the company. In such conditions you can avail the Fast Track Scheme, introduced by the Ministry of Corporate Affairs. A Fast Track scheme is the easy route for winding up a company without much legal complications and time consuming. Instead of going for winding up of Company, where you need to appoint someone or Court would appoint an Official Liquidator and the process would go on for months.
Ministry has issued Guidelines for "Fast Track Exit (FTE) Mode" to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956 in time bound manner.
There are two main criteria:-
· The company applying under FTE should not have any asset and liability.
· The company should not have commenced any business activity or operation since incorporation or at least one year must has been passed since last business activity or operation.
The guidelines does not inter-alia cover the listed companies, companies that have been de-listed due to non-compliance of listing agreement or any other statutory Laws, section 8 companies, vanishing companies, companies under inspection/investigation, companies against which prosecution for a non-compoundable offence is pending in court, companies having outstanding public deposits or secured loan or dues towards banks and financial institutions or any other Government Departments etc. or having management dispute or company in respect of which filing of documents have been stayed by court or CLB or Central Government or any other competent authority.
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