Executive Summary:
The Ministry of Corporate Affairs established the Centre for Processing Accelerated Corporate Exit (CPACE) to expedite the voluntary closure of companies, with PAN-India jurisdiction, operationalized from May 1, 2023. The CPACE processes applications for voluntary closure in under two months. Amendments have also been made to facilitate the striking off of Limited Liability Partnerships (LLPs). Further steps have been taken to improve ease of doing business and compliance through various measures, including technology enhancements and decriminalization of offenses.
Key Points / Main Content:
CPACE Establishment and Role:
* CPACE was established on March 17, 2023, vide MCA Notification No. S.O 1269E and operationalized from May 1, 2023, to accelerate the voluntary strike-off of companies.
* CPACE processes voluntary closure applications in less than 2 months, compared to over 2 years previously.
* CPACE provides hassle-free filing, timely processing, and a uniform approach across the country.
* All communication, queries, approvals, or rejections are managed through the central MCA portal.
Striking Off Companies and LLPs:
* From May 1, 2023, to July 31, 2025, 38,658 companies have been struck off via STK2 applications.
* Effective August 27, 2024, LLP eForm 24 was enabled for striking off LLPs through ROC, CPACE, vide MCA Notification dated August 5, 2024, GSR 475E.
* As of July 31, 2025, 8,368 LLPs have been struck off under Section 75 of the Limited Liability Partnership Act, 2008.
Measures for Ease of Doing Business and Compliance:
* MCA21 V3 portal has 79 forms processed via Straight Through Process (STP) or conditional STP.
* Central Processing Centre (CPC) established on February 2, 2024, for centralized processing of 12 non-STP forms (specified forms listed in the original text).
* E-adjudication Module established on September 16, 2024, to provide an end-to-end electronic adjudication mechanism.
* V3 system allows web-based form filing and optimization of fields.
* Linked forms on the MCA21 V3 portal integrate related filings for complete disclosure.
* Mobile App available for stakeholders to access MCA21 services.
* Decriminalization of 63 offenses under the Companies and LLP Acts.
* Conversion of over 54 forms to Straight Through Process (STP).
* Introduction of eForm SPICe and AGILE PROS for various services at incorporation, and eForm FiLLiP for LLPs.
* Amended definition of Small Company and introduction of the concept of small LLP for lesser compliances.
* Setting up an eAdjudication Portal for adjudication of offences related to the Companies Act.
* Zero fee for incorporation of company with authorized capital up to Rs.15.00 Lakh.
* Extended fast track process for mergers under the Companies Act, 2013 to include mergers of Startups with other Startups and with small companies.
* Enhanced scope of section 233 of CA2013 Fast Track Mergers Amalgamation through approval of Regional Directors.
* Zero cost for shifting of the registered office of a company.
* Convening Annual General Meeting AGM and Extraordinary General Meeting EGM of a company through Video Conference VC.
* 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 exchanges at GIFT IFSC.
Impact Analysis:
Companies:
* Impact: Easier and faster voluntary closure, reduced compliance burden through various initiatives (STP, decriminalization, etc.), and streamlined processes for various filings and approvals.
* Action Required: Utilize CPACE for voluntary strike-off, adopt new online filing and adjudication processes, and take advantage of relaxed compliance requirements for small companies.
Limited Liability Partnerships (LLPs):
* Impact: Easier and faster striking off process, reduced compliance burden, and streamlined incorporation process.
* Action Required: Utilize CPACE for striking off, adopt new online filing processes, and take advantage of relaxed compliance requirements for small LLPs.
Directors and Key Managerial Personnel:
* Impact: Easier compliance, online adjudication, and reduced risk due to decriminalization of offenses.
* Action Required: Utilize the e-adjudication module, comply with new online processes, and ensure compliance with the amended regulations.
Stakeholders (General):
* Impact: Improved access to information and services through the MCA21 portal and mobile app.
* Action Required: Utilize the MCA21 portal and mobile app for accessing information and services.
Key Entities Referenced
Centre for Processing Accelerated Corporate Exit (CPACE): A center established by the Ministry of Corporate Affairs to expedite the voluntary closure of companies.
Ministry of Corporate Affairs: The government ministry responsible for corporate affairs.
Limited Liability Partnership (LLP): A type of business structure for which certain rules were amended to enable striking off through ROC, CPACE.
MCA21 V3 portal: An online portal with 79 forms processed on a STP Straight through Process allowing acceptance of forms electronically without human intervention.
Companies Act, 2013: The Indian legislation governing companies.
Limited Liability Partnership Act, 2008: The Indian legislation governing Limited Liability Partnerships.
Companies Listing of Equity Shares in Permissible Jurisdictions Rules, 2024: Rules issued 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), Gujarat: A financial services centre where Indian Public companies can list their equity shares.
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 11TH
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 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.
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 5th 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.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:
(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. 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 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.
*****