The Ministry of Corporate Affairs (MCA) has significantly streamlined the voluntary closure process for companies and Limited Liability Partnerships (LLPs) through the establishment of the Centre for Processing Accelerated Corporate Exit (CPACE), operational since May 1, 2023. This initiative has reduced the average processing time for voluntary closure applications from over two years to less than two months. As of July 31, 2025, CPACE has facilitated the striking off/dissolution of 38,658 companies that filed STK2 applications. Additionally, 8,368 LLPs have been struck off under Section 75 of the Limited Liability Partnership Act, 2008, read with Rule 37(1b) of the Limited Liability Partnership Rules, 2009, enabled by an amendment to Rule 37(1) of LLP rules.
In addition to CPACE, the MCA has implemented several measures to enhance ease of doing business and compliance, including:
* Increasing the number of forms processed via Straight Through Process (STP) to 79 on the MCA21 V3 portal.
* Establishing a Central Processing Centre (CPC) on February 2, 2024, for centralized processing of 12 non-STP forms.
* Implementing an e-Adjudication Module on September 16, 2024, for end-to-end electronic adjudication.
* Introducing web-based form filing with real-time validation and auto-prefilling features.
* Developing linked forms and a mobile app for improved transparency and accessibility.
* Decriminalizing 63 offences under the Companies and LLP Acts.
* Converting over 54 forms to STP.
* Introducing eForm SPICe and FiLLiP for integrated services at the time of incorporation.
* Amending the definition of "Small Company" by increasing the threshold limits and introducing the concept of "small LLP".
* Setting up an e-Adjudication Portal.
* Offering zero-fee incorporation for companies with authorized capital up to Rs. 15.00 Lakh.
* Extending the fast-track merger process to include mergers of Startups with other Startups and small companies.
* Expanding the scope of Section 233 of CA2013 to cover mergers of foreign holding companies with their wholly-owned Indian subsidiaries.
* Eliminating the cost for shifting a company's registered office.
* Allowing Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) via Video Conference (VC).
* Issuing Companies Listing of Equity Shares in Permissible Jurisdictions Rules, 2024, allowing Indian Public companies to list their equity shares on international stock exchanges at GIFT IFSC.
This information was provided by the Minister of Finance and Minister of Corporate Affairs Smt. Nirmala Sitharaman.
Key Entities Referenced
Ministry of Corporate Affairs: The government ministry responsible for corporate affairs.
Centre for Processing Accelerated Corporate Exit: A center established by the Ministry of Corporate Affairs to expedite the voluntary strike-off of companies.
Limited Liability Partnership Act, 2008: The Act governing Limited Liability Partnerships in India.
MCA21: An e-governance initiative by the Ministry of Corporate Affairs to enable easy and secure access to MCA services.
Companies Act, 2013: The Indian law that governs company incorporation, regulation, and winding up.
Companies Listing of Equity Shares in Permissible Jurisdictions Rules, 2024: Rules allowing Indian Public companies to list their equity shares on international stock exchanges at GIFT IFSC.
Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC): A special economic zone in Gujarat, India, designed to be a global financial hub.
Lok Sabha: The lower house of the Parliament of India.
Ministry of Corporate Affairs
C-PACE Revolutionises Voluntary Closure of
Companies and LLPs
Ministry of Corporate Affairs’ centralised exit
mechanism reduces processing time for voluntary
closure applications from over 2 years to less than 2
months
Posted On: 11 AUG 2025 4:25PM by PIB Delhi
The Ministry of Corporate Affairs has established the Centre for Processing Accelerated Corporate Exit (C-
PACE) vide MCA Notification No. S.O 1269(E) dated 17th 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.
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.
Rule 37(1) of LLP rule was amended to enable filing of LLP e-Form 24 for processing striking-off of LLPs
through ROC. 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.
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:
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 on 2nd February, 2024 for centralized processing of
12 non-STP forms. 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. 16th 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 ofcommon 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.
This information was given by the Minister of Finance and Minister of Corporate Affairs Smt. Nirmala
Sitharaman in a reply to a question in Lok Sabha today.
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(Release ID: 2155051)