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.
About C-PACE (Centre for Processing Accelerated Corporate Exit):
- C-PACE has been set up to centralise the process of striking off companies from the MCA Register.
- Location: It is located at the Indian Institute of Corporate Affairs in Gurgaon.
- C-PACE will be in operation through the Registrar of Companies (RoC) for the purposes of exercising functional jurisdiction of processing and disposal of applications.
- It will work under the supervision of the Director General of Corporate Affairs (DGCoA).
- C-PACE will reduce the burden on the registry and provide stakeholders with hassle-free filing, timely and process-bound striking off of their company’s names from the register.
- It is part of MCA’s efforts towards ease of doing business and ease of exit for companies.
- New Rules:
- As per new rules issued by the MCA, applications for removal of the 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 will now be completed in six months as against the earlier timeline of two years.
- Section 248 of the Companies Act:
- It provides for the removal of the name of the 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.
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