C-PACE Speeds Up Voluntary Closure of Companies & LLPs
Ministry of Corporate Affairs Cuts Processing Time from Over 2 Years to Under 2 Months
The Ministry of Corporate Affairs (MCA) has transformed the voluntary closure process for companies and LLPs through the Centre for Processing Accelerated Corporate Exit (C-PACE).
Operational since 1 May 2023, C-PACE now processes voluntary strike-off applications within 2 months—a massive improvement from the earlier average of over 2 years when handled by jurisdictional Registrars of Companies (RoCs).
Key Highlights:
- PAN-India Jurisdiction: Centralised processing via the MCA portal ensures uniformity, transparency, and real-time updates.
- Massive Adoption: Between 1 May 2023 and 31 July 2025,
- 38,658 companies exited through Form STK-2.
- 8,368 LLPs struck off under Section 75 of the LLP Act via e-Form 24.
- Hassle-Free Filing: All communications, including queries, approvals, and rejections, happen online through the MCA portal.
Other MCA Ease-of-Doing-Business Initiatives
- Straight Through Processing (STP): 79 forms processed automatically without human intervention.
- Central Processing Centre (CPC): Launched on 2 Feb 2024 for speedy clearance of non-STP forms.
- E-Adjudication Module: Fully online adjudication process including hearings via video conference.
- Web-Based Form Filing: Real-time validation, auto-prefilling, and linked forms for complete disclosure.
- Mobile App: Access notices, applications, and dashboard on the go.
- Decriminalisation: 63 offences under Companies & LLP Acts decriminalised to reduce litigation.
- SPICe+ & AGILE PRO-S Forms: One-stop incorporation service including PAN, TAN, GST, EPFO, ESIC, and bank account opening.
- Small Company & Small LLP Benefits: Higher thresholds, reduced compliance, and lower fees.
- Zero Fee & Zero Cost Benefits: Free incorporation (up to ₹15 lakh capital) and free shifting of registered office.
- Virtual Meetings: AGMs and EGMs allowed via video conferencing.
- Global Listing: Rules notified for Indian public companies to list on international exchanges at GIFT IFSC.
With these reforms, MCA is making corporate compliance simpler, faster, and more transparent, boosting ease of doing business in India.
Press Release: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155051
Also Read: MCA Update on New Company Forms (Effective 14th July 2025)
