MCA Extends C-PACE To Limited Liability Partnerships

The Ministry of Corporate Affairs ("MCA") has recently introduced an amendment to the Limited Liability Partnership Rules, 2009 ("LLP Rules") vide notification number G.S.R 425(E) dated August 5, 2024 ("Notification").

Background:

The Central Government vide MCA notification S.O. 1269(E) dated March 17, 2023, established a Centre for Processing Accelerated Corporate Exit ("C-PACE") at the Indian Institute of Corporate Affairs, Gurgaon, Haryana. C-PACE is intended to centralize the application process for the voluntary closure of body corporates, aiming to reduce the burden on local registrars and enhance the efficiency of corporate exits. This initiative is a part of the broader efforts to improve the ease of doing business in India by providing a hassle-free, timely, and organized method for body corporates to strike off their names from the registry.