MCA Guidelines for Fast Track Exit mode for defunct companies under section 560 of the Companies Act, 1956

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The Ministry of Corporate Affairs has introduced Fast Track Exit mode for defunct companies under section 560 of the Companies Act, 1956. This scheme is launched to give an opportunity for fast track exit by a defunct company, for getting its name struck off from the register of companies. Such companies may make anapplication to the Ministry of Corporate Affairs in the eForm FTE, accompanied by filing fee of Rs. 5,000/-

General Circular No. 36/2011, Dated the 7 th June, 2011

F. No. 2/3/2011-CL V

Ministry of Corporate Affairs

Subject: Guidelines for Fast Track Exit mode for defunct companies under section 560 of the Companies Act, 1956

Sir,

There are a number of companies, which are registered under the Companies Act, 1956, but due to various reasons they are inoperative since incorporation or commenced business but became inoperative or defunct later on. Such companies may be desirous of getting their names strike off from the Register of Companies maintained by Registrar of Companies.

2. As per section 560 of the Companies Act, 1956, Registrar of Companies may strike off the name of companies on satisfying the conditions therein. As per present practice, a company desirous of getting its name struck off, has to apply to Registrar of companies in e-form 61. All pending statutory returns are required to be filed along with e-form 61.

3. In order to give an opportunity for fast track exit by a defunct company, for getting its name struck off from the register of companies, the Ministry has decided to modify the existing route through e-form – 61 and has prescribed the new Guidelines. The Guidelines for “Fast Track Exit mode” for defunct companies under section 560 of the Companies Act, 1956 are enclosed herewith.

4. These Guidelines will be implemented w.e.f. 3^rd July, 2011.