Liquidation and winding up of companies is a process of dissolution of the company. It is the traditional way of ending the corporate entity’s existence. This process can be voluntary as well as initiated by the Tribunal. Chapter XX Section 270-319 deals with process of winding up of a company. This is a lengthy process and involves lot of time and effort. We fully assist in the process end to end be in winding up of company or any other mode of exit which is applicable on company. There are some quick modes of exit also available as an alternate to winding up.

  • Quick Modes of Exit of company other than winding up and obtaining Dormant Status


Fast Track Exit Scheme: Eligible companies may opt for FTE scheme which is a time and cost effective way to defunct companies. Under this scheme company applies in FORM-FTE and registrar puts the name of the applicant on the MCA portal for 30 days to invite objections if any by the stakeholders. Fast Track exit is available for start-ups as well under Insolvency and Bankruptcy Code, 2016 to exit within 90 days.

Strike Off: Under section 248 a company can get strike off by ROC or initiated suo-moto by itself. An application in FORM – STK-2 is required to be filed by the company with supporting documents including Indemnity Bond, affidavits, approvals, statement of accounts etc. There are a series of check w.r.t the necessary compliance applicable on the company and application for strike-off is approved only after that.

Dormant Company: Newly introduced concept in the Companies Act, 2013 in accordance with widely accepted best practices around the globe to allow companies to obtain Dormant status thereby giving flexibility for any future projects if it does not have any “any significant accounting transactions”. Registrar is entrusted with suo-moto power to strike off the company if it is not carrying out any business and has not sought for Dormant status under section 455 of the Companies Act, 2013.

Annual Return of Dormant Company – In FORM – MSC-3 the company is required to file “Return of Dormant Company” within 30 days from the end of each financial year failing which the company can be strike off.

Change in director, allotment of securities may go on even in the dormant status for company. To resume active status a dormant company must file an application in FORM –MSC-4 accompanied by prescribed documents.