Centre for Processing Accelerated Corporate Exit – Current Updates (May, 2023)
The Ministry of Corporate Affairs (MCA) has taken a significant step forward in streamlining the strike-off process of companies with the establishment of the Centre for Processing Accelerated Corporate Exit (C-PACE). This institution aims to simplify procedures, reduce the burden on the Registry, maintain a clean registry, and provide valuable data to stakeholders.
Streamlining Processes for Stakeholders
C-PACE has been established under sub-section (1) of section 396, granting it functional jurisdiction over processing and disposal of applications. The primary objective is to offer stakeholders a hassle-free filing experience and ensure timely and process-bound striking off of company names from the Register. This development is part of the MCA’s continuous efforts to enhance the Ease of Doing Business and facilitate smooth exits for companies.
Location and Amendments
C-PACE is situated at the Indian Institute of Corporate Affairs (IICA) in IMT Manesar, Gurgaon, Haryana. This strategic location provides a conducive environment for efficient processing and disposal of applications. Furthermore, on April 17, 2023, the Ministry made revisions to the rules governing the removal of company names from the Register of Companies, known as the companies (Removal of Names of Companies from the Register of Companies) Rules, 2023. These amendments aim to enhance the functioning of C-PACE and have been in effect since the beginning of May 2023.
Enhancing Efficiency and Ease of Business
With the establishment of C-PACE, the MCA has demonstrated its commitment to improving the ease of doing business in India. By centralizing the strike-off process, the Registry’s workload will be reduced, ensuring a cleaner registry and more meaningful data for stakeholders. The efficient operation of C-PACE will contribute to a smoother exit process for companies, aligning with the government’s focus on ease of business and creating a conducive environment for entrepreneurship and growth.
Month: Current Affairs - May, 2023
Category: India Nation & States Current Affairs