Need immediate solution

This query is : Resolved

rajan pandya (Querist)
Follow

26 January 2015 Dear Friends,

we have started a company under new companies act 2013 now WE want to close it we have not carry a single transaction during the year we only have bank cash including 50000/-(bank)we want to close it how we can?
can u please tell me process ,fees ,time etc.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
Follow

26 January 2015 Have you filed INC-21 which is to be filed withing 6 months of incorporation ? Or else you can try for Fast Track Exit Scheme.Guidelines available on MCA site.

Message likes : 1 times

rajan pandya

rajan pandya (Querist)
Follow

28 January 2015 Thank you Sir,

AS per the fast track exit mode the company must have nil balance sheet & we have current assets. Now what to do further?

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

03 August 2024 To close a company that was incorporated under the Companies Act, 2013, and has not carried out any transactions during the year, you can opt for the **Fast Track Exit Mode** (FTE) or the **normal process**. Given that you have a balance of ₹50,000 in the bank and no transactions, the Fast Track Exit Mode is likely the more suitable route.

### Fast Track Exit Mode (FTE) Process

**Eligibility Criteria for FTE:**

1. **Nil Transactions:** The company must not have carried out any business or commercial activity since its incorporation.
2. **No Pending Liabilities:** There should be no outstanding liabilities or dues.
3. **Nil Balance Sheet:** The company should have a nil balance sheet, or if there are assets, they should be less than ₹1 lakh.
4. **All Returns Filed:** All statutory returns and annual filings should be up to date.

**Steps to Close the Company Using FTE:**

1. **Hold a Board Meeting:**
- **Pass a Board Resolution:** Approve the proposal to close the company and authorize a director to sign the necessary documents.

2. **File an Application with the Registrar:**
- **File Form STK-2:** The application for striking off the company is made using Form STK-2. This form should be filed online with the Registrar of Companies (ROC).
- **Documents Required:**
- **Affidavit:** An affidavit from the directors declaring that the company has not carried out any business and has no pending liabilities.
- **Board Resolution:** A copy of the resolution passed by the board of directors.
- **Statement of Assets and Liabilities:** Although the balance sheet shows nil transactions, this statement should confirm the current financial status.
- **No Objection Certificate (NOC):** Obtain a no-objection certificate from the tax authorities and other relevant departments confirming no dues.
- **Bank Closure Certificate:** Proof that the company’s bank accounts are closed.

3. **Publication of Notice:**
- The ROC will publish a notice in the official gazette and in a local newspaper about the proposed strike-off. This is to give a chance for any objections.

4. **Receive the Certificate of Strike-Off:**
- If no objections are raised within the specified period, the ROC will issue a certificate of strike-off, effectively closing the company.

**Fees:**

- The filing fee for Form STK-2 is nominal, usually around ₹5,000. However, check the latest fee structure on the [MCA website](https://www.mca.gov.in/).

**Timeline:**

- **Processing Time:** The entire process can take anywhere from 2 to 6 months, depending on the ROC’s processing speed and any potential objections.

### Normal Process for Closure (If Not Eligible for FTE)

If your company doesn’t meet the criteria for FTE or if there are any issues:

1. **Hold Board Meetings and File Forms:**
- **File Form 23AC and 23ACA:** File these forms to present the company's accounts for the last financial year.
- **File Form 21:** Apply for the company’s dissolution using Form 21.

2. **Dissolution by Tribunal (if necessary):**
- If the Fast Track Exit Mode is not suitable, you may have to apply to the National Company Law Tribunal (NCLT) for dissolution under Section 248 of the Companies Act, 2013.

### Summary

1. **Check Eligibility:** Ensure you meet the criteria for the Fast Track Exit Mode.
2. **File STK-2:** Submit the necessary documents and Form STK-2 to the ROC.
3. **Complete Formalities:** Follow up on the ROC notice and obtain the strike-off certificate.

If you need more detailed assistance or if any issues arise, consider consulting with a company secretary or legal advisor to ensure compliance with all regulations and to handle any specific concerns.