C-PACE – Quick Company Wind-Up and Strike-Off

Introduction

If you own a company that you no longer wish to operate, you might be considering officially closing it down. Properly winding up your company is essential, as it removes your business from the government’s official registry (the “MCA Register”) and helps you avoid future penalties, fees, and legal complications. To simplify and speed up this process, the Ministry of Corporate Affairs (MCA) in India has launched the Centre for Processing Accelerated Corporate Exit (C-PACE). Close your company quickly and effortlessly—begin your company winding-up process with IndiaFilings today.

What is C-PACE?

C-PACE stands for the Centre for Processing Accelerated Corporate Exit. It is a centralized government body established by the Ministry of Corporate Affairs (MCA) to manage and simplify the process of closing, or “striking off,” companies. Prior to C-PACE, winding up a company was often slow and managed locally by the Registrar of Companies. Now, C-PACE aims to streamline and accelerate the entire closure process.

Key Benefits of C-PACE for Company Closure

Faster Process
Closing a company used to take up to 180 days or more. With C-PACE, this timeline has been reduced to around 100 days or less, allowing you to complete the closure efficiently and move forward without unnecessary delays.

Centralized and Efficient
C-PACE consolidates the entire winding-up procedure into a single, centralized office. This eliminates confusion and reduces back-and-forth communication between multiple departments, making the process smoother and less error-prone.

Simplified Paperwork
The documentation for company closure has been simplified. For instance, the new STK-2 form lets you attach financial statements in Excel format and get them digitally certified by a Chartered Accountant, cutting down on manual paperwork and improving accuracy.

Transparency and Accountability
The STK-2 form now requires directors to confirm that at least 75% of the company’s shareholders (by paid-up capital) agree to the closure. This ensures all key stakeholders are aligned, promoting transparency and fairness throughout the process.

Avoid Penalties and Legal Issues
Properly winding up your company via C-PACE helps you avoid future penalties. Dormant or non-operational companies that are not officially closed may still need to file annual returns or meet other compliance requirements, and failure to do so can result in fines and legal troubles. Striking off your company’s name through C-PACE protects you from unexpected costs down the road.

How to Get Started with C-PACE

Here’s a simple step-by-step guide to begin the company winding-up process through C-PACE:

1. Check Eligibility
Reach out to our advisors to confirm if your company qualifies for winding up. Generally, companies eligible to file Form STK-2 are those that have been inactive or not conducted business for a significant period. According to Section 248 of the Companies Act 2013 and related rules, eligible companies typically:

Have never commenced business since incorporation or have stopped all operations for at least two consecutive financial years
Have no outstanding liabilities, ongoing legal cases, or pending regulatory compliances
Have obtained the necessary shareholder approvals for closure

If your company meets these criteria, you can apply to remove its name from the official register, ensuring a clean and penalty-free exit.

2. Prepare Documents
Ensure your company’s financial statements are current and gather all required paperwork for Form STK-2, including shareholder consent and a digitally certified statement of accounts. If you partner with IndiaFilings, our expert accountants will assist you in preparing these documents accurately.

3. File the STK-2 Form via C-PACE
Our professionals will digitally certify and file your STK-2 form along with all necessary attachments on the MCA portal to initiate the winding-up process.

4. Await Approval
After submission, C-PACE will process your application. Thanks to its accelerated system, you can expect updates and a final decision much faster than traditional methods

About the Author

Rohit

Rohit is a talented writer known for breaking down complex legal concepts into clear, practical insights. Her work empowers entrepreneurs by providing the legal knowledge they need to confidently launch and manage their businesses with greater ease and clarity.

June 12, 2025