Context: 7,700 firms voluntarily closed business since setting up the Center for Processing Accelerated Corporate Exit (C-PACE).

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• Since the setting up of the Center for Processing Accelerated Corporate Exit 7,721 companies have been struck off till 05.12.2023, under section 248(2) of the Act.
• The time taken under C-PACE for voluntary exit has been reduced to around 110 days during the current year.

About C-PACE

• Nodal Ministry: Ministry of Corporate Affairs(MCA) 
• Establishment: C-PACE is established under sub-section (1) of section 396 of the Companies Act 2013. 
• Governance: It will work under the supervision/administration of the Director General of Corporate Affairs (DGCoA)
  • Functioning: It operates through the Registrar of Companies (RoC) to exercise functional jurisdiction of processing and disposal of applications.
• Purpose: 
  • Its primary role is to streamline the voluntary winding-up of companies to under six months. 
  • To centralize the process of striking off businesses from the MCA Register.

C-PACE: Importance 

• Reduce stress: It will help to reduce the stress on the Registry along with keeping the registry clean besides the availability of more meaningful data to the stakeholders.
• Benefit stakeholders: The stakeholders will also profit from the C-PACE since it will make filing simple and ensure that their company names are removed from the Register promptly.
• Improves Ease Of Doing Business: It is a part of MCA’s efforts to promote Ease Of Doing Business with ease of exit of companies.

Learn more about IMPORTANT INDEXES AND REPORTS, here.

News source:  Livemint