Ministry Launches C-PACE to Fast-Track Company and LLP Closures Under New LLP Rules

The Ministry of Corporate Affairs has introduced the Centre for Processing Accelerated Corporate Exit (C-PACE) to expedite voluntary closure of companies and LLPs, reducing processing time from over two years to under two months. Since its operation began in May 2023, over 38,000 companies and 8,300 LLPs have been struck off through streamlined electronic filing processes. Amendments to LLP rules and enhancements in the MCA21 V3 portal, including straight-through processing, centralized processing centers, and e-adjudication modules, have improved compliance efficiency. Additional reforms include decriminalization of certain offences, increased thresholds for small companies and LLPs, zero fees for incorporation with limited capital, expanded fast-track merger provisions, and facilitation of virtual meetings. The regulatory framework now also permits Indian public companies to list equity shares on international exchanges at GIFT IFSC, collectively enhancing ease of doing business and corporate exit procedures nationwide.