Government establishes the Accelerated Corporate Exit Processing Centre

Pritipalit

2 years ago

The Ministry of Corporate Affairs (MCA) has taken a significant step forward by centralizing the strike-off process of companies through the establishment of the Centre for Processing Accelerated Corporate Exit (C-PACE). This move aims to reduce the burden on the Registry, maintain a clean registry, and provide stakeholders with more meaningful data. C-PACE will also simplify the filing process and ensure timely and process-bound striking off of company names from the Register, benefiting stakeholders. The establishment of C-PACE is part of MCA’s efforts to facilitate Ease of Doing Business and streamline the exit process for companies.

Functional Jurisdiction

C-PACE, established under sub-section (1) of section 396, will operate through the Registrar of Companies (RoC) and will be responsible for processing and disposing of applications related to company strike-offs.

Inauguration and Appointment

The Office of C-PACE was inaugurated on May 1, 2023, by Shri R.K. Dalmia, Director, Inspection & Investigation, MCA. Shri Harihara Sahoo, ICLS, has been appointed as the first Registrar of the office of C-PACE. The C-PACE office will work under the supervision and administration of the Director General of Corporate Affairs (DGCoA) in New Delhi.

About C-PACE

C-PACE was established as per MCA Notification No. S.O. 1269(E) dated March 17, 2023. The office is located at Indian Institute of Corporate Affairs (IICA), 7th Floor, Plot No. 6,7,8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin Code – 122050.

Amendment of Rules

In accordance with notification No. G.S.R. 298(E) dated April 17, 2023, the Ministry amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023, which came into effect from May 1, 2023. This amendment further facilitates the functioning of C-PACE and its objectives.

The establishment of C-PACE marks a significant milestone in streamlining the process of company strike-offs. By centralizing the process and providing a hassle-free experience for stakeholders, the MCA aims to improve the Ease of Doing Business and ensure a smoother exit for companies.

Accelerated Corporate Exit Processing Centre – FAQs

Q1: What is the Accelerated Corporate Exit Processing Centre (C-PACE)?

Ans: The Government has recently established the Accelerated Corporate Exit Processing Centre (C-PACE) to consolidate and streamline the company strike-off process. Its goal is to make the processing of applications relating to company strike-offs more efficient and timely.

Q2: Why was the C-PACE established?

Ans: The introduction of C-PACE is part of the government’s aim to make doing business easier and to simplify the exit procedure for businesses. By centralizing the strike-off process, the Registry’s workload is reduced, the registry is kept clean, and stakeholders are provided with more valuable data.

Q3: What are the benefits of C-PACE for stakeholders?

Ans: C-PACE benefits stakeholders by making filing easier and assuring timely and process-bound removal of corporate names from the Register. It does away with the necessity for Tax Deducted at Source (TDS) and allows stakeholders to enjoy the full interest amount without having to worry about immediate tax deductions.

Author

Pritipalit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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