Lok Sabha Question No. 314 (STARRED), answered on 2025-08-11
Subject: Role of C-PACE
Ministry: CORPORATE AFFAIRS
Asked by: Shri Balabhadra Majhi, Shri Basavaraj Bommai

## Government of India

## Ministry of Corporate Affairs

## LOK SABHA STARRED QUESTION NO. 314 ANSWERED ON MONDAY, AUGUST 11, 2025

## ROLE OF C-PACE Question

- *314. Shri Balabhadra Majhi:

Shri Basavaraj Bommai:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) Whether the Government has established Centre for Processing Accelerated Corporate Exit (C-PACE);
- (b) if  so,  the  role  of  the  C-PACE  for  expeditious  processing  of applications filed for voluntary closure of companies;
- (c) the  number  of  companies  struck  off  through  C-PACE  since  its establishment;
- (d) whether a similar provision has been made for LLPs as well and if so, the details thereof; and
- (e) the  steps  taken  by  the  Government  to  improve  ease  of  doing business and enhance ease of compliance?

## Answer

MINISTER OF FINANCE AND MINISTER OF CORPORATE AFFAIRS.

[SMT. NIRMALA SITHARAMAN]

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

STATEMENT REFERRED TO IN REPLY TO PART (a), (b), (c), (d) & (e) OF LOK SABHA STARRED QUESTION NO. *314 TO BE ANSWERED ON 11 TH AUGUST, 2025 REGARDING 'ROLE OF C-PACE'

- (a) & (b)  Yes. The Ministry has established the Centre for Processing Accelerated  Corporate  Exit  (C-PACE)  vide  MCA  Notification  No.  S.O 1269(E) dated 17 th March 2023 to facilitate and speed up the voluntary Strike off of companies having PAN-INDIA jurisdiction and operationalized from 01.05.2023.

As on 31.07.2025, under C-PACE, applications filed for voluntary closure of companies are getting processed within an average time of less than 2 months compared to an average time of more than 2 years earlier when  the  voluntary  strike  off  applications  were  being  processed  by various jurisdictional RoCs.

C-PACE is enabling the stakeholders by providing a hassle-free filing, timely and process-bound striking off their companies' and LLPs' names from the Register. C-PACE Provides a uniform and consistent approach across  the  country  and  it  also  ensures  all  communication (queries, approvals, or rejections) is done via the central MCA portal, providing real-time updates and better tracking for applicants.

- c) During 01.05.2023 to 31.07.2025, 38658 number of companies have availed  the  exit  process  on  filing  STK-2  application  and  marked  as strike-off/dissolved.
- d) Vide MCA Notification dated 5 th  August 2024  GSR 475(E) ,rule 37(1) of  LLP  rules    was  amended  to  enable  filing  of    LLP  e-Form  24    for processing striking-off of LLPs through ROC, C-PACE with effect from 27th August 2024, and as on 31.07.2025, 8368 LLPs have been struck off u/s 75 of the Limited Liability Partnership Act, 2008 r/w Rule 37(1)(b) of the Limited Liability Partnership Rules, 2009.
3. e).  The Ministry has taken several steps from time to time to provide a seamless  process  for  ease  of  doing  business  and  enhance  ease  of compliance for companies and LLPs, such as:
4. (i) In the MCA21 V3 portal there are 79 forms which are processed on a STP  (Straight  through  Process)  or  conditional  STP  basis,  allowing acceptance of forms electronically without human intervention, which leads to 'ease of compliance' and 'ease of doing business'.

(ii)Central Processing Centre (CPC) was established vide  MCA Notification No. S.O. S.O. 446(E) dated 2nd February, 2024 for centralized processing of 12 non-STP forms, namely MGT-14 (Filing of Resolutions  and  Agreements),  SH-7  (Alteration  in  Capital),  INC24 (Change in Name), INC-6 (Conversion of One Person Company to Private or Public, or Private to OPC), INC-27 (Conversion from Private into Public or Vice Versa), INC-20 (Revocation/surrender of license under Section 8 of the Act), DPT-3 (Return of Deposits), MSC- 1 (Application for obtaining the status of dormant company), MSC- 4 (Application for seeking status of Active Company), SH-8 (Letter of offer for Buy-Back), SH-9 (Declaration  of  Solvency),  SH11  (Return  in  respect  of  buy-back  of securities).  CPC  was  established  to  ensure  speedy  processing  of applications and forms filed for meeting regulatory requirements so that the companies are able to complete their various compliances under the corporate laws with ease.

(iii)E-adjudication Module  has  been  established  in  V3  w.e.f. 16 th September,  2024  to  provide  an  end-to-end  electronic  adjudication mechanism.  All  activities  required  for  adjudication  including  case creation, e-hearing, issuance of Show Cause Notice, order issuance and collection of Penalties are carried out online. This process has made it easier for Directors and Key Managerial Persons of companies to attend the adjudication proceeding through online VC.

(iv) V3 system allows web-based form filing, thereby improving real time validation and auto pre-filling of common  fields across forms.

Optimization of fields in the Forms has also been carried out in V3 by removal of duplicate/redundant fields. (v)  Linked  forms  on  the  MCA21  V3  portal  are  designed  to  ease compliance  and  enhance  transparency  by  integrating  related  filings together, ensuring a complete disclosure of business information. (vi)Mobile App has been made available for all stakeholders to access various  services  offered  by  MCA21  website  including  application dashboard, notices, circular etc. (vii)  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. (viii)  Conversion  of  more  than  54  forms  to  Straight  Through  Process (STP) which earlier required approval of field offices. (ix) 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. (x) 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, lesser fee to reduce the cost of compliances. (xi)  Setting  up  an  e-Adjudication  Portal  for  adjudication  of  offences

- related to the Companies Act.

(xii) Zero fee for incorporation of company with authorized capital up to Rs.15.00 Lakh. (xiii) 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. (xiv)  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. (xv) Zero cost for shifting of the registered office of a company. (xvi)  Convening  Annual  General  Meeting  (AGM)  and  Extra-ordinary General Meeting (EGM) of a company through Video Conference (VC). (xvii) 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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