New Delhi: The Ministry of Corporate Affairs (MCA) has revolutionized the closure of companies and LLPs with the operational launch of the Centre for Processing Accelerated Corporate Exit (C-PACE), drastically reducing the average processing time for voluntary closure applications from more than two years to under two months.
Operational since May 1, 2023, C-PACE offers a centralized exit mechanism with PAN-India jurisdiction, streamlining the voluntary strike-off process for companies and LLPs.
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All application processing, from queries to approvals or rejections, is conducted entirely through the MCA portal, ensuring real-time tracking and uniform execution nationwide.
Closure of Companies (May 1, 2023 – July 31, 2025): Key Achievements of C-PACE
- 38,658 companies dissolved through STK-2 applications.
- 8,368 LLPs struck off under Section 75 of the LLP Act, 2008, read with Rule 37(1)(b) of the LLP Rules, 2009.
The establishment of C-PACE for closure of companies and LLPs, is part of MCA’s larger reform agenda to enhance ease of doing business and ease of compliance.
Other MCA Initiatives Include:
- MCA21 V3 Portal Enhancements: Web-based form filing, real-time validation, and pre-filled data fields.
- Straight Through Processing (STP): 79 forms processed electronically without human intervention.
- Central Processing Centre (CPC): Operational since February 2, 2024, for speedy handling of 12 non-STP forms.
- E-Adjudication Module: Launched on September 16, 2024, for end-to-end online adjudication, including hearings via video conferencing.
- Decriminalization of 63 Offences: Reducing litigation burden and shifting cases to adjudication.
- Zero-Fee Incorporation: For companies with authorized capital up to ₹15 lakh.
- Fast-Track Mergers: Extended to startups and small companies, including certain cross-border mergers.
- SPICe+ & AGILE PRO-S: Integrated services for name reservation, incorporation, PAN, TAN, GST, EPFO, ESIC, and bank account opening.
- Mobile App: Access to MCA21 services including dashboards, notices, and circulars.
