Centre for Processing Accelerated Corporate Exit (C-PACE)

• 30 Nov 2024

Source: BS

The Centre for Processing Accelerated Corporate Exit (C-PACE) has efficiently streamlined the process of company closures to 70-90 days.

• It aims to expedite the voluntary winding up of companies within six months.
  • Since 5^th August 2024, C-PACE has been empowered processing eForms related to striking off Limited Liability Partnerships (LLPs) as well.
• C-PACE was launched by the Ministry of Corporate Affairs (MCA) to centralise and streamline the process of company closure.
  • It functions under the Registrar of Companies (RoC), an office under MCA.
• It facilitates ‘Ease of Doing Business’ by eliminating the necessity for physical interactions with stakeholders.
• Section 248 of the Companies Act, 2013 gives RoC the authority to remove a company's name from the register of companies.
  • Voluntary liquidation under Section 59 of the IBC is now more streamlined as it does not require NCLT intervention to start the process.
• The timeline for voluntary winding up of companies takes between 90 and 180 days in the US while in Germany it takes more than a year.

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