If you are not doing any business in the private limited or the business is incurring continuous losses it is better to close such private limited and look for a fresh start.A private limited company thus needs to be windup properly when there is no transactions or directors of company are not willing to continue its operations.If you want to close your Private Limited Company, is should be at-least a year old and the creditors of the company should be willing to let you close the company. Then, you can close your company through Fast track scheme. A Fast Track scheme is the easy route for the Directors to close their company without much legal complications and time consuming. Instead of going for Winding-up of Company, which you need to appoint or Court would appoint an Official Liquidator and the process, would go on for months. In order to avoid all these lengthy legal formalities, you can use the option of Fast Track Exit Scheme to close your Private Limited Company.
The Fast Track exit scheme was introduced by the Ministry of Corporate Affairs (MCA)in order to make the winding up procedure more smooth and easy for inactive companies that have NIL assets and liabilities to close down or Wind up.
The Fast track Exit Scheme provides a cost effective way for winding up of a Private Limited company provided that the Company should be eligible for the Fast Track Exit Scheme. It is actually cheaper to wind up a company and incorporate again when the time is right. Startup setup can help you to wind up the Company at an affordable price.
A Company can dispose off the winding up of a private limited Company in about 90 days whereas other modes are very longer and time consuming.Hence, closing a company under fast track exit scheme is faster and easier.
A company is a legal entity and a juristic person established created under the Companies Act. Therefore, a company required regular maintenance of Compliance throughout its lifecycle. Fast track exit used can be used close a company that is not active and avoid compliance responsibilities.
The Companies that is not carrying out any activity or a business since its incorporation can be easily and quickly wounded up through Fast Track Exit scheme.
Winding up of a company is defined as a process by which the life of a company is brought to an end and its property is administered for the benefit of its members & creditors. An Administrator, called a liquidator is appointed and he takes control of the company, collects its assets, pays its debts and finally distributes any surplus among the members in accordance with their rights.
A company may wound up its affairs, if it is unable to carry on its business, or if it was formed only for a limited purpose, or if it is unable to meet its financial obligation.
There are three modes for Winding up of a Company-
For the purpose of applying for the FTE scheme, a defunct company means a company which has:
A defaulting Company is a company which does not file the annual returns and/or annual financials for any financial year(s).Such a company can apply for FTE provided it fulfils other conditions.
Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.
FTE is an easy mode of closing non-operating companies at cheaper cost with lesser formalities as compared to earlier Schemes for Exit of non-operating companies.Fast Track Exit Mode (FTE) is introduced by Ministry of Corporate Affairs for giving opportunity to non-operating companies for getting their names struck off from the records of Ministry of Corporate Affairs.
FTE scheme helps in speedy disposal of striking off of names of dormant or inactive or defunct Company from the register of Registrar of Companies with smooth and steady ways with lesser formalities and time Credibility.
The Companies which are eligible for FTE scheme are
Just log on to our website and provide your Contact details, our team experts will revert you as soon as possible and guide you in the process.
Winding up of a Company will be carried out by Start Up Set up under Fast track exit(FTE) mode.
An Expert reviews the Business Activity to assure whether the Company is eligible for closure through Fast Track Exit Mode.
For closure of a Private Ltd Co, Our team of experts will have to prepare essential documents like Board Resolutions, Statements of Accounts, etc. All the documents will be sent by us for your Confirmation along with timely follow ups.
All the documents related to Fast Track Exit will be submitted by our team to Registrar of Companies to strike off the name from the register.
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