Centre for Processing Accelerated Corporate Exit (C-PACE) was introduced to streamline and expedite the voluntary strike-off process of companies and Limited Liability Partnerships (LLPs) in India. Since its inception, C-PACE has centralized the strike-off process for both companies under the Companies Act, 2013, and LLPs under the LLP Act, 2008. As of November 2024, C-PACE has successfully struck off 13,560 companies in 2023-24 and 11,855 companies in the current financial year. The average processing time has decreased to 70-90 days, reflecting improved efficiency. Additionally, 3,264 LLPs were struck off by mid-November 2024. The process has been standardized to reduce processing times and enhance transparency. The Ministry of Corporate Affairs regularly monitors C-PACE’s performance to ensure its effectiveness in achieving these goals.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
STARRED QUESTION NO. *199
ANSWERED ON MONDAY, 9th DECEMBER 2024
Agrahayana 18, 1946 (Saka)
EFFICIENCY OF C-PACE
*199. Shri Shashank Mani:
Shri Bibhu Prasad Tarai:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the Government has implemented monitoring mechanisms to assess the effectiveness and efficiency of C-PACE; and
(b) if so, the details thereof, including any benchmarks or metrics used to evaluate improvements in processing time and any feedback received from companies on the efficiency of the system?
ANSWER
Minister of Finance & Corporate Affairs
(Smt. Nirmala Sitharaman)
(a) and (b) : A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PART (a) and (b) OF LOK
SABHA STARRED QUESTION NO. *199 FOR ANSWER ON 9thDECEMBER, 2024
(a) and (b):The Centre for Processing Accelerated Corporate Exit (C-PACE) was established to centralize and speed up the voluntary strike off process of companies u/s 248(2) of the Companies Act, 2013 in a fast-track mode in order to facilitate ‘Ease of Doing Business’ in India. Subsequently, the Ministry has centralized the striking off of Limited Liability Partnerships (LLPs) as well by empowering the C-PACE for processing of e-Forms related to striking off of LLPs u/s 75 of the Limited Liability Partnership Act, 2008 r/w Rule 37 of the Limited Liability Partnership Rules, 2009.
Since its inception 13,560 companies have been struck off through ROC C-PACE in the financial year 2023-24 and 11,855 companies in the current financial year 2024-25 up to 15thNovember, 2024. The average time taken for processing such applications has come down to between 70-90 days. As far as LLPs are concerned, 3,264 LLPs have been struck off as on 15thNovember, 2024.
After centralization of voluntary strike off process of companies under C-PACE, procedures have been standardized leading to reduction in processing time as well as transparency in the system. The working of C-PACE is monitored on a regular basis by the Ministry.
