Lok Sabha Question No. 15 (STARRED), answered on 2024-11-25
Subject: Status of Centre for Processing Accelerated Corporate Exit (C-PACE)
Ministry: CORPORATE AFFAIRS
Asked by: Shri Mahesh Kashyap, Shri Praveen Patel

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

STARRED QUESTION NO. *15

ANSWERED ON MONDAY, 25TH NOVEMBER 2024/

Agrahayana 4, 1946 (Saka)

Status of Centre for Processing Accelerated Corporate Exit (CPACE)

*15. SHRI MAHESH KASHYAP : SHRI PRAVEEN PATEL :

Will the Minister of CORPORATE AFFAIRS कारपोरेटकार्यमंत्री be pleased to state:

- (a) the status of establishment of Centre for Processing Accelerated Corporate Exit (C-PACE) for accelerating the strike off process of companies; (b) the  details  of  other  achievements  made  towards  bolstering 'Ease of Compliance' and 'Ease of Doing Business'; and the measures taken to promote ease of compliance and ease

## ANSWER

Minister of Finance & Corporate Affairs    (Smt. Nirmala Sitharaman)

- (a) to (c)   :  A statement is laid on the Table of the House.

Contd…2…

- (c) of doing business?

STATEMENT REFERRED TO IN REPLY TO PART (a), (b) & (c) OF LOK SABHA  STARRED  QUESTION  NO.  *15  TO  BE  ANSWERED  ON  25 TH NOVEMBER, 2024 REGARDING ' STATUS OF CENTRE FOR PROCESSING ACCELERATED CORPORATE EXIT (CPACE)'

- (a) :      The  Centre  for  Processing  Accelerated  Corporate  Exit  (CPACE) was established vide MCA Notification No. S.O. 1269(E) dated 17 th  March 2023 to centralize and speed up the voluntary strike off process of companies u/s 248 (2) of the Companies Act, 2013 in a fasttrack  mode  in  order  to  facilitate  'Ease  of  Doing  Business'  in India.

Since its inception 13,560 companies have been struck off u/s 248(2)  of  the  Companies  Act,  2013  through  ROC  C-PACE  in  the financial year 2023-24 and 11,855 companies in the current financial year 2024-25 up to 15 th  November, 2024. The average time taken for processing  such  applications  has  come  down  to  between  70-90 days.

Vide notification No G.S.R. 475(E) dated 5th August 2024 the Ministry has centralized the striking off of Limited Liability Partnerships (LLPs)  by empowering the C-PACE for processing of eForms related to striking off of LLPs, as well.

With  effect  from  27th  August  2024,  eForms  for  processing striking  off  of  LLPs  through  ROC  C-PACE has been operationalized and as on 15 th  November, 2024,  3,264 LLPs have been struck off u/s 75 of the Limited Liability Partnership Act, 2008 r/w Rule 37 of the

Limited Liability Partnership Rules,  2009.

- (b) &   (c)   :     To improve ease of doing business and enhance ease of compliance, MCA has taken several steps in the recent past including some major steps as under:-
- (i) Decriminalization  of  63  offences  under  the  Companies and LLP Acts. While providing relief to corporates, one of the objectives of decriminalization has also been reduction of litigation burden  in judicial  courts  and shifting the prosecution cases towards adjudication.

- (ii) Conversion  of  more  than  54  forms  to  Straight  Through Process  (STP)  which  earlier  required  approval  of  field
- offices.
- (iii) Introducing  e-Form  SPICe+  along  with  a  linked  form called  AGILE  PRO-S  for  providing  different  services  at one  place  such  as  Name  Reservation,  Incorporation, Allotment  of  PAN,  TAN,  DIN,  EPFO  Registration,  ESIC Registration, GST number, opening of Bank Account etc. at  the  time  of  incorporation  of  company  to  start  the business immediately. Similarly, new e-Form FiLLiP (Form for  incorporation  of  Limited  Liability  Partnership)  was introduced  for  providing  the  same  services  in  a  single application.
- Definition  of  Small  Company  has  been  amended  by increasing  the  threshold  limit  of  a  small  company  from having a paid-up capital not exceeding Rs.2.00 Crore to Rs.4.00 Crore and turnover not exceeding Rs.20.00 Crore to  Rs.40.00  Crore.  Similarly,  concept  of  small  LLP  has been introduced which is subject to lesser compliances,
- (iv) lesser fee to reduce the cost of compliances.
- (v) Setting up of a Centralized Registrar of Companies (CRC) for incorporation to provide uniformity in the incorporation process.
- (vi) Setting up of a Central Scrutiny Centre (CSC) for centralised scrutiny of e-Forms filed under STP.
- (vii) Setting up a Central Processing Centre (CPC) for centralised processing of specified non-STP e-forms.
- Setting  up  an  e-Adjudication  Portal  for  adjudication  of
- (viii) offences related to the Companies Act.
- (ix) Zero  fee  for  incorporation  of  company  with  authorized capital up to Rs.15.00 Lakh.

- (x) Extended  fast  track process  for  mergers  under  the Companies Act, 2013 to include mergers of Startups with other  Startups  and  with  small  companies,  so  that  the process of mergers & amalgamations is expedited.
- (xi) The scope of section 233 of CA-2013 (Fast Track Mergers & Amalgamation through approval of Regional Directors) enhanced.  This  now  also  covers  merger  of  a  transferor foreign  company  incorporated  outside  India  (being  a holding company) with its wholly owned  subsidiary incorporated in India.
- (xii) Zero  cost  for shifting of the registered office of a company.
- (xiii) Convening  Annual  General  Meeting  (AGM)  and  Extraordinary  General  Meeting  (EGM)  of  a  company  through Video Conference (VC).
- (xiv) Companies  (Listing of Equity Shares in Permissible Jurisdictions)  Rules,  2024  have  been  issued  allowing Indian  Public  companies  to  list  their  equity  shares  on international stock exchange(s) at GIFT IFSC.

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