What is C-PACE (Centre for Processing Accelerated Corporate Exit)?

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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Q1) What is the work of Indian Institute of Corporate Affairs?

Set up as the premier organization that aims at providing astute and credible intellectual leadership in corporate regulation, governance and running sustainable businesses, IICA is a think-tank, capacity building and service delivery institute.

Source: C-PACE has gone live from May 1: MCA