Closure & Strike-off of Companies (Fast Track Exit)
If your company is no longer operational and you wish to close it in a legally compliant manner, opting for the Fast Track Exit (FTE) under Section 248 of the Companies Act, 2013 is the most efficient way. Our expert team at Advisorate ensures a smooth and hassle-free strike-off process, minimizing compliance burdens while ensuring full regulatory adherence.
What is Fast Track Exit (FTE)?
Fast Track Exit (FTE) is a simplified route for companies to voluntarily apply for closure and removal of their name from the Registrar of Companies (ROC). This process is suitable for companies that have either never commenced business or have ceased operations.
Eligibility for Strike-off Under Section 248
A company can apply for closure under FTE if it meets the following conditions:
- It has not commenced business since incorporation or has not carried out any business activity in the last two years.
- It has no outstanding liabilities.
- It has obtained consent from the majority of its shareholders.
- It does not fall under the list of companies excluded from FTE (such as listed companies, Section 8 companies, etc.).
Documents Required for Company Closure
To proceed with the strike-off, the following documents are required:
- Indemnity Bond (STK-3) – Signed by all directors affirming there are no outstanding liabilities.
- Affidavit (STK-4) – Declaration by the directors confirming the cessation of business.
- Statement of Accounts – Certified by a Chartered Accountant, not older than 30 days from the application date.
- Board Resolution & Special Resolution – Approving the company's closure.
- Consent of Creditors (if applicable) – If the company has creditors, their no-objection confirmation is required.
- Application Form (STK-2) – Official strike-off application submitted to the ROC along with the prescribed fee.
Step-by-Step Process of Company Closure
Board Meeting & Approval
Pass a board resolution approving the company's closure.
Shareholder Approval
Obtain shareholders' consent via a special resolution.
Settle All Liabilities
Ensure there are no outstanding dues or liabilities.
Prepare and Submit Documents
File STK-2 along with all necessary attachments to the ROC.
Public Notice Issuance
The ROC will issue a public notice, allowing objections (if any) to be raised within 30 days.
Final Approval & Strike-off
If no objections are received, the ROC will remove the company's name from the register.
Expected Timeline
Our Company Closure & Strike-off Services
- Expert Guidance: Our team ensures accurate filing, preventing unnecessary delays.
- End-to-End Compliance: We handle everything from documentation to final approval.
- Quick Processing: Speed up the closure process with our streamlined approach.
- Legal Protection: Avoid future liabilities by ensuring complete legal compliance.