MCA has been taking many initiatives to support ease of doing business in india. Previously, it had setup CRC (Central Registration Centre) to process company and LLP incorporation, in centralized manner, across india.
Similarly to process genuine cases of company closures under fastrack exit scheme, C-PACE was planned for and was announced by FM Nirmala sitaraman during budget 2022 speech.
At present, MCA vide its notification dated 17th March 2023, had announced the establishment of C-PACE by central government, in exercise of powers conferred by sec.396(1) of companies act 2013. The said notification is to take effect wef 1.4.2023. Office of C-PACE shall be located at premises of Indian institute of corporate affairs, Manesar, haryana.
Previously, FM during her Budget 2022 speech mentioned that C-PACE with inner engineering, would facilitate and speed up voluntary winding up of companies, from currently required period of 2 years to less than 6 months.
C-PACE will process and dispose applications, filed by companies (incl private limited companies) under section 248 of companies act, for removal of company names from register of companies.
Section 248 of companies act provides for removal of name of company from register of Companies, if it is not carrying on any business or operation for period of 2 immediately preceding financial years and has also not applied for dormant company status under section 455. previously this function was discharged by registrar of companies.