Introduction: The Ministry of Corporate Affairs (MCA) has taken a significant leap towards enhancing Ease of Doing Business with the operationalization of the Central Processing Centre (CPC) for Corporate Filings. In alignment with the Union Budget Announcement 2023-24, the CPC aims to centralize the processing of various regulatory requirements under the Companies Act and Limited Liability Partnership Act (LLP Act), fostering a seamless and stakeholder-friendly environment.
Detailed Analysis:
1. Operationalization of CPC: MCA’s Central Processing Centre (CPC) marks a strategic move to centralize the processing of forms filed under the Companies Act and LLP Act. This centralized approach eliminates the need for physical interaction with stakeholders, aligning with the government’s commitment to Ease of Doing Business.
2. Forms and Applications Processing: Effective from 16th February 2024, the CPC will initially process 12 forms/applications, with plans to expand its scope from 1st April 2024. These forms, covering various aspects like alterations in capital, conversion of company types, and returns related to buy-back of securities, will be handled in a time-bound and faceless manner.
3. Expected Operational Scale: The CPC is anticipated to process around 2.50 lakh forms annually, once fully operational. It represents a crucial step in leveraging technology for efficient handling of regulatory requirements, ensuring speedy processing without compromising accuracy.
4. Comprehensive Approach: The CPC’s operation is modeled on the successful Central Registration Centre (CRC) and Centralised Processing for Accelerated Corporate Exit (C-PACE). This ensures consistency in the faceless and time-bound processing of applications, promoting transparency and expeditious resolution.
5. Focus on Ease of Doing Business: MCA’s continuous efforts towards Ease of Doing Business are evident in the significant increase in the incorporation of LLPs and companies. The establishment of CRC and C-PACE has played a pivotal role in achieving quicker incorporation and expeditious voluntary closure of companies.
6. Streamlining Corporate Governance: With the introduction of CPC, the jurisdictional Registrar of Companies (RoC) can shift their focus towards core functions like inquiries, inspections, and investigations, thereby enhancing corporate governance.
7. Further Steps: The establishment of CPC is part of a broader initiative by MCA to enhance Ease of Doing Business. The focus on quick incorporation and accelerated corporate exit through CRC and C-PACE has yielded positive results, showcasing the government’s commitment to fostering a business-friendly environment.
Conclusion: The Ministry of Corporate Affairs’ introduction of the Central Processing Centre (CPC) is a noteworthy stride towards transforming the landscape of corporate filings. By centralizing and digitizing processes, the CPC not only simplifies regulatory requirements but also reinforces the commitment to Ease of Doing Business. Stakeholders, including companies and LLPs, can anticipate a more efficient and transparent system that aligns with the contemporary demands of a dynamic business environment. As the CPC becomes fully operational, its impact on processing time and accuracy will likely set new benchmarks for regulatory efficiency in India.
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Ministry of Corporate Affairs
MCA operationalises Central Processing Centre (CPC) for Centralised Processing of Corporate Filings
12 forms/applications will be processed at CPC from 16.02.2024; followed by other forms from 01.04.2024 onward
CPC will process applications in time-bound and faceless manner on the lines of Central Registration Centre (CRC) and Centralised Processing for Accelerated Corporate Exit (C-PACE)
Due to consistent efforts taken by MCA towards Ease of Doing Business, Incorporation of LLPs and companies is highest as compared to any of the previous financial years as on 14.02.2024
Posted On: 16 FEB 2024 2:15PM by PIB Delhi
On the lines of continuous endeavor to provide Ease of Doing Business in pursuance to Union Budget Announcement 2023-24, Central Processing Centre (CPC) has been established to process forms filed as part of various regulatory requirements under Companies Act and Limited Liability Partnership Act (LLP Act) in a centralised manner, requiring no physical interaction with the stakeholders.
From 16.02.2024, 12 forms/applications as listed below shall be processed at CPC, followed by other forms from 01.04.2024 onward. Later, forms/applications filed under LLP Act are also proposed to be centralised. Based on filing trends, it is expected that about 2.50 lakh forms will be processed through CPC annually, once it is fully operational.
| Name of Form | Description |
| MGT-14 | Filing of Resolutions and Agreements |
| SH-7 | Alteration in Capital |
| INC-24 | 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 licence 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 |
| SH-11 | Return in respect of buy-back of securities |
As of now, 4,910 forms have been received by CPC after commencing operations. The forms shall be processing a timebound and faceless manner. Processing of applications at CRC and C-PACE also does not require any physical interaction with the stakeholders.
The Central Registration Centre (CRC), Centralised Processing for Accelerated Corporate Exit (C-PACE), and CPC will ensure speedy processing of applications and forms filed for incorporation, closure and for meeting regulatory requirements so that the companies are incorporated, closed, can alter and raise capital, and are able to complete their various compliances under the corporate laws with ease.
After the establishment of CPC, jurisdictional Registrar of Companies (RoC), will have to focus more on their core functions of inquiries, inspection and investigation for ensuring robust corporate governance.
Further Steps towards Ease of Doing Business
Over the past many years, the Ministry of Corporate Affairs has taken several steps towards Ease of Doing Business.
An important part of the EoDB has been initiatives taken towards ease of entry in terms of quicker incorporation of companies. Central Registration Centre (CRC) was established for centralised, expeditious, transparent processing of applications filed for companies and LLPs for incorporation in Non-STP (Straight Through Processing) mode. This has yielded desired results. While during FY 2013-14, 1,02,063 Companies and LLPs were incorporated, during FY 2022-23, 1,95,586 Companies and LLPs got incorporated, registering an increase of about 92%.
Incorporation of LLPs and companies till 14.02.2024 this financial year has been not only more than the previous Financial Year 2022-23, but also the highest as compared to any of the previous financial years.
Following ease of entry, it was announced in the Union Budget Speech 2022-23 to establish Centralised Processing for Accelerated Corporate Exit (C-PACE) for expeditious voluntary closure of companies under the provisions of Section 248(2) of Companies Act, 2013 from more than 2 years to less than 6 months. Accordingly, C-PACE was established and operationalised on 01.05.2023. Under C-PACE, applications filed for voluntary closure of companies are getting processed in Non-STP within an average time of less than 4 months (about 100 days) compared to an average time of more than 18 months earlier. C-PACE has processed and closed 12,441 companies so far. Only 3,368 applications are pending with C-PACE, the lowest as compared to any previous year.
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