The Ministry of Corporate Affairs (MCA) has recently made it compulsory to file all overdue financial statements and annual returns for closure of Partnership Firms, announcing new conditions for companies wishing to de-register with the Register of Companies (RoC) in India.
According to the changes, firms applying for removal of their names from the register will have to file financial statements and annual returns to cease business operations. These changes are part of the government’s efforts to speed up the process of closing down companies.
Under the new rules, a company cannot file for the removal of its name unless it has filed overdue financial statements and annual returns up to the end of the financial year in which it ceased to operate. In case a company intends to file the application after the action has been initiated by the Registrar, it will have to file all pending financial statements and annual returns prior to this. These changes have been introduced to ensure that such firms remain accountable and responsible for their actions.
The Ministry of Corporate Affairs has also set up the Centre for Processing Accelerated Corporate Exit (C-PACE) to centralize the strike-off process of companies. The establishment of the C-PACE is part of the government’s efforts to ease the process of doing business and exit for companies. The C-PACE institution shall be in operation through the Registrar of Companies for the purposes of processing and disposal of applications. The Office of C-PACE was inaugurated on 1st May 2023 and will work under the supervision/administration of Director General of Corporate Affairs, New Delhi.
The establishment of C-PACE will benefit the stakeholders by providing hassle-free filing, timely and process-bound striking off their company’s names from the Register. The C-PACE will help to reduce the stress on the Registry, keeping the registry clean and making meaningful data available to stakeholders.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
