Including decriminilisation of 63 offences, the Ministry of Corporate Affairs ( MCA ) has implemented a series of reforms to improve ease of doing business and smoothening compliance for companies and Limited Liability Partnerships (LLPs). The lists of steps taken by the MCA was presented in front of the Rajya Sabha by Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways, Shri Harsh Malhotra. Become a PF & ESIC expert with our comprehensive course – Enroll Now
One of the initiative was the establishment of the Centre for Processing Accelerated Corporate Exit (C-PACE) through a notification dated March 17, 2023, to centralize and expedite the voluntary strike-off process under Section 248(2) of the Companies Act, 2013. Since its inception, C-PACE has facilitated the removal of 13,560 companies in the financial year 2023-24 and 11,855 companies in the current financial year 2024-25 (as of November 15, 2024), said Sri Harsh Malhotra in his reply before Rajya Sabha. Become a PF & ESIC expert with our comprehensive course – Enroll Now The average processing time for such applications has been reduced to 70–90 days.
Furthermore, the C-PACE’s jurisdiction has been expanded to include LLPs, with 3,264 LLPs struck off under Section 75 of the LLP Act, 2008, since the operationalization of e-forms for LLP strike-offs on August 27, 2024. The 14 lists are: Decriminalization of 63 offences under the Companies and LLP Acts, shifting prosecution cases towards adjudication to reduce litigation burdens. Conversion of 54 forms to Straight Through Process (STP) for faster approval. Introduction of e-Form SPICe+ and linked AGILE PRO-S to provide integrated services like name reservation, incorporation, PAN/TAN allotment, GST registration, and more. Similarly, e-Form FiLLiP offers similar services for LLPs. Revision of the Small Company definition, increasing thresholds for paid-up capital to ₹4 crore and turnover to ₹40 crore.
A new “small LLP” category has been introduced with reduced compliance costs. Centralized Registrar of Companies (CRC) to ensure uniformity in incorporation processes. Central Scrutiny Centre (CSC) for centralized scrutiny of STP e-Forms. Central Processing Centre (CPC) for non-STP e-Forms. e-Adjudication Portal for offences under the Companies Act. Zero fees for company incorporation with authorized capital up to ₹15 lakh.
Fast-tracked mergers, including startup mergers and amalgamations of small companies. Enhanced scope of Section 233 to include mergers of foreign holding companies with Indian subsidiaries. Zero cost for shifting registered offices of companies. Virtual meetings for AGMs and EGMs through video conferencing. New listing rules allowing Indian public companies to list equity shares on international exchanges in GIFT IFSC.