Government establishes the Accelerated Corporate Exit Processing Centre
The Ministry of Corporate Affairs (MCA) has taken a significant step towards making the process of striking off defunct companies easier and more efficient. This has been achieved through the establishment of the Centre for Processing Accelerated Corporate Exit (C-PACE), which will centralize the process of striking off companies.
Government establishes the Accelerated Corporate Exit Processing Centre: Key Points
- The establishment of the C-PACE will not only relieve the stress on the Registry, but it will also ensure that the Registry is kept clean, providing stakeholders with more meaningful and accurate data.
- By providing a hassle-free filing system and following a timely, process-bound approach to striking off company names from the Register, stakeholders will benefit from an enhanced experience.
- The creation of the C-PACE is a part of the MCA’s commitment to promote Ease of Doing Business and the ease of exit for companies. Under sub-section (1) of section 396, the C-PACE will operate under the Registrar of Companies (RoC) to process and dispose of applications.
The Office of C-PACE was inaugurated on 1st May 2023 and will be supervised by the Director General of Corporate Affairs (DGCoA) in New Delhi. Shri R.K. Dalmia, Director of Inspection and Investigation at MCA, inaugurated the office, and Shri Harihara Sahoo, ICLS, was appointed as the first Registrar of the C-PACE office.
- C-PACE was established on March 17, 2023 through MCA Notification No. S.O. 1269(E).
- It is located on the 7th floor of the Indian Institute of Corporate Affairs (IICA) in IMT Manesar, Gurgaon.
- The Ministry further amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2023 with notification No. G.S.R. 298(E) on April 17, 2023 which became effective on May 1, 2023.