The Ministry of Corporate Affairs (MCA) recently established C-PACE, or Centre for Processing Accelerated Corporate Exit, to bring efficiency into the strike off process of companies.
GS III: Indian Economy
Dimensions of the Article:
- About C-PACE (Centre for Processing Accelerated Corporate Exit)
- New Rules and Impact
About C-PACE (Centre for Processing Accelerated Corporate Exit):
- C-PACE is an initiative established to centralize the process of striking off companies from the MCA Register.
- It is located at the Indian Institute of Corporate Affairs in Gurgaon, India.
- C-PACE operates through the Registrar of Companies (RoC) and has functional jurisdiction over processing and disposal of applications.
- The center functions under the supervision of the Director General of Corporate Affairs (DGCoA).
Objectives and Benefits:
- C-PACE aims to reduce the burden on the registry and streamline the process of striking off companies’ names from the register.
- It facilitates hassle-free filing and ensures timely and process-bound removal of company names.
- The establishment of C-PACE is part of the Ministry of Corporate Affairs’ (MCA) efforts to promote ease of doing business and ease of company exit.
New Rules and Impact:
- As per the new rules issued by the MCA, applications for the removal of a company’s name under Section 248 of the Companies Act will be made to the registrar at C-PACE.
- The implementation of C-PACE is expected to expedite the voluntary winding-up process, reducing the timeline from two years to six months.
- Section 248 of the Companies Act allows for the removal of a company’s name from the RoC if it hasn’t conducted any business or operations for two consecutive financial years and hasn’t applied for dormant company status under Section 455 within that period.
-Source: Economic Times