Govt to set up Centre for Processing Accelerated Corporate Exit

The government will set up a Centre for Processing Accelerated Corporate Exit (C-PACE) to process and dispose of applications for the removal of company names from the records under the Companies law.

In a written reply to Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said the centre will be established at Manesar in Haryana.

"This initiative is likely to provide ease to such companies for closing their business as per provisions of Chapter XVIII and getting their names removed from the Register of Companies," he said.

C-PACE will process and dispose of applications for removal of names from the Register of Companies filed by companies, including private limited companies, under Section 248 of the Companies law.

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A notification regarding C-PACE was issued on March 17, and the same would come into force from April 1.

Section 248 of the Companies Act, 2013 provides for the removal of the name of the company from the Register of Companies if it is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within the said period for obtaining the status of a dormant company under Section 455.