Ways For Closing A Company India With Fast Track Mode Essay

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How to Close a Company in India with Fast Track Mode A company may go for closure when it becomes increasingly difficult for a company to pay its debts due to loss, ceasing trading or going into receivership or liquidation etc. Basically in India most of the companies are register under the private limited companies in the starting and after some months or year when they are not showing any growth in the Business, that time they want to shut down the operations and close the company so they need not to maintain the company returns & another things. But it’s not easy to close a Company in India. In India there are 2 ways for closing a company in India:- a) Fast Track Exit –it is most popular and best way to close a Company in India. b) Voluntary Winding up – it’s a long way and a traditional method to close a company in India. So, now we discussed about the Fast Track Exit method which is very popular. Recently Ministry of Corporate Affairs issued Guidelines regarding the Fast Track Exit method. Two Main Criteria for eligibility are: • The company applying under FTE should not have any asset and liability(nil). • The company should not have commenced any business activity or operation since incorporation or at least one year must has been passed since last business activity or operation. Fast Track Exit Mode (FTE) This is introduced by Ministry of Corporate Affairs for giving opportunity to non-operating companies for getting their names struck off from the records of

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