Centre for Processing Accelerated Corporate Exit

March 30, 2023

C-PACE or Centre for Processing Accelerated Corporate Exit is a newly established body that aims to process and dispose of applications for the removal of company names from the records under the Companies Act, 2013. This article delves into the significance of C-PACE, its purpose, and how it can benefit companies.

Establishment of C-PACE

C-PACE is established in Manesar, Haryana, as a one-stop solution for companies looking to close their business and remove their names from the Register of Companies. The Minister of State for Corporate Affairs, Rao Inderjit Singh, announced the establishment of C-PACE in March 2023, with the notification issued on March 17. It will come into force on April 1, 2023.

Purpose of C-PACE

The primary purpose of C-PACE is to facilitate the process of closing businesses and removing company names from the Register of Companies. Companies looking to file applications for the removal of names from the Register of Companies under Section 248 of the Companies Act, 2013, can benefit from C-PACE.

Companies Act, 2013

The Companies Act, 2013, provides for the removal of a company’s name from the Register of Companies if it is not carrying on any business or operation for a period of two immediately preceding financial years, as per Section 248 of the Act. C-PACE will process and dispose of applications for removal of names of private limited companies and other companies from the Register of Companies.

Chapter XVIII

The Companies Act’s Chapter XVIII deals with the removal of companies’ names from the Register of Companies. C-PACE aims to facilitate the closure of businesses in accordance with the provisions of Chapter XVIII.

Financial Years

Two immediately preceding financial years of non-operation of business are required for the removal of the name of the company from the Register of Companies under Section 248 of the Companies Act, 2013. C-PACE will expedite the process of filing and disposing of applications for the removal of names.

Dormant Companies

A dormant company is a company that has not been carrying on any business or operation for a period of two immediately preceding financial years and has not made any significant accounting transaction during that period. Such companies cannot apply for the removal of their name from the Register of Companies.

Significance of C-PACE

C-PACE is a significant step towards providing ease to companies for closing their business and getting their names removed from the Register of Companies. It helps make the process of removal of names more streamlined and efficient, saving time and effort for companies.

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