• Defunct company can get its name struck off from the register of companies under a fast track exit scheme notified on June 7, 2011 applicable from July 3, 2011.

• A company will be called as "defunct company", which has nil asset and liability and has not commenced any business activity or operation since incorporation; or is not carrying over any business activity or operation for last one year before making application under the said Scheme (hereinafter referred to as FTES).

• Such defunct company shall make an application in the Form FTE, duly certified by a Chartered Accountant in whole time practice or Company Secretary in whole time practice or Cost Accountant in whole time practice; and annexed electronically on the Ministry of Corporate Affairs portal namely www.mca.gov.in accompanied by filing fee of Rs. 5,000/-; Besides the said Form shall be accompanied by:

— The Form FTE shall be accompanied by an affidavit annexed at Annexure A, 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;

— Form FTE shall further be accompanied by an Indemnity Bond, duly notarized, as annexed at Annexure B, 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;

— The Company shall also file a Statement of Account annexed as Annexure C, prepared as on date not prior to more than one month preceding the date of filing of application in Form FTE, duly certified by a statutory auditor or Chartered Accountant in whole time practice, as the case may be.

In case of foreign nationals and NRIs, Indemnity Bond and Affidavit may be notarized as per their respective country’s law.

• 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 authorised 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 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 there are any pending prosecutions for non-filing of Annual Returns under section 159 and Balance Sheet under section 220 of the Companies Act, 1956, only, 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 will be taken only after disposal of compounding application by the competent authority.

• In the case of 100% Government companies, where no Board exixts, an officer not below the rank of Deputy Secretary of the concerned administrative Ministry shall make the said application in Form FTE and in Annexure A, B and C in place of name and other details of the directors.

• The Registrar of Companies, shall examine the applications so received and if found in order, shall give a notice to the company under section 560(3) of the Companies Act, 1956 by email on its e-mail address intimated in the Form, giving thirty days time, stating that unless cause is shown to the contrary, its name be struck off from the Register and the company will be dissolved;

• The Registrar of Companies shall put the name of applicant(s) and date of making the application(s) under fast track exit mode, on daily basis, on the MCA portal www.mca.gov.in, giving thirty days time for raising objection, if any, by the stakeholders to the concerned Registrar;

• In case of company(s) like Non-Banking Financial Company(s), Collective Investment Management Company(s) which are regulated by other Regulator(s) such as RBI, SEBI, the Registrar of Companies, at the end of every week, shall send intimation to the concerned Regulator(s) and to the Income Tax Department, giving thirty days time for their objection, if any;

• The scheme is not applicable to the following companies namely:—

1. listed companies;

2. companies which are de-listed under Listing Agreement or any other statutory laws;

3. companies registered under section 25 of the Companies Act, 1956;

4. vanishing companies;

5. 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;

6. companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is pending in the court;

7. companies against which prosecution for non-compoundable offence is pending;

8. companies which have accepted public deposits which are either outstanding or which is in default in repayment of the same;

9. company having secured loan;

10. company having management dispute;

11. company in respect of which filing of documents have been stayed by any competent authority;

12. 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.