The ministry of corporate affairs (MCA) has set up the Centre for Processing Accelerated Corporate Exit (C-PACE) that is expected to provide timely and process-bound striking-off of companies from the MCA register.
“The establishment of the C-PACE will help to reduce the stress on the registry along with keeping the registry clean besides availability of more meaningful data to the stakeholders,” said an official statement on Saturday, adding that it will also benefit the stakeholders by providing a hassle-free filing, timely and process-bound removal of their company’s names from the register.
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The setting up of the C-PACE is part of the several measures taken by the MCA in the recent past towards ease of doing business and ease of exit for the companies. Located at the Indian Institute of Corporate Affairs in Gurgaon, it will be in operation through the Registrar of Companies (RoC) for the purposes of exercising functional jurisdiction of processing and disposal of applications and will work under the supervision of director general of corporate affairs.
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Announced in the Union Budget 2022-23, C-PACE came into effect from April 1 this year. As per new rules issued by the ministry of corporate affairs, from May 1, applications for removal of name of a company under Section 248 of the Companies Act would be made to the registrar, C-PACE. It is expected that the process of voluntary winding up of companies would now be completed in six months as against the earlier timeline of two years.
Section 248 of the Companies Act, 2013 provides for removal of the name of company from the RoC, if it is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within the said period for obtaining the status of a dormant company under Section 455.