Govt starts centralised processing of filings under companies law

The government has operationalised the central processing centre for processing filings under the companies law and LLP Act in a "time-bound and faceless manner" as part of efforts to further improve the ease of doing business.

Initially, 12 forms and applications under the companies law will be processed at the Central Processing Centre (CPC). From April 1 onwards, other forms and applications will be processed through the centre.

"As of now, 4,910 forms have been received by CPC after commencing operations. The forms shall be processed a time-bound and faceless manner," the corporate affairs ministry said in a release on Friday.

Later, forms/applications filed under Limited Liability Partnership (LLP) Act are also proposed to be centralised.

Based on filing trends, the ministry said it is expected that about 2.50 lakh forms will be processed through CPC annually, once it is fully operational.

With the establishment of CPC, the ministry noted that jurisdictional Registrar of Companies (RoC) will have to focus more on their core functions of inquiries, inspection and investigation for ensuring robust corporate governance.

The ministry, which implements the companies and LLP laws, has already operationalised the Central Registration Centre (CRC) and Centralised Processing for Accelerated Corporate Exit (C-PACE).

CRC, C-PACE and CPC will ensure speedy processing of applications and forms filed for incorporation, closure and for meeting regulatory requirements so that the companies are incorporated, closed, can alter and raise capital, and are able to complete their various compliances under the corporate laws with ease, it said.

A total of 1,02,063 companies and LLPs were incorporated in FY 2013-14 and the count rose 92 per cent to 1,95,586 in FY 2022-23.
The ministry said that incorporation of companies and LLPs till February 14 of the current financial year has been the highest as compared to any of the previous financial years.

Under C-PACE, applications filed for voluntary closure of companies are getting processed in non-STP (Straight Through Processing) within an average time of less than 4 months (about 100 days) compared to an average time of more than 18 months earlier.

"C-PACE has processed and closed 12,441 companies so far. Only 3,368 applications are pending with C-PACE, the lowest as compared to any previous year," the release said.