CLOSING UP SHOP MADE EASIER, GOVT AIMS FOR 3-MONTH COMPANY CLOSURE

The official highlighted that while reducing the processing time for voluntary closure presents a challenge, efforts are underway to streamline the process further.

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In a significant move aimed at enhancing the -ease of doing business in India, the government has streamlined the process for company incorporation and voluntary closure. According to a senior official from the Ministry of Corporate Affairs (MCA), the time required for incorporating a company has been reduced to just two days, reflecting a remarkable improvement from the previous average of 18 days.

Furthermore, the processing time for voluntary closure of companies has been significantly reduced to 110 days since the operationalization of Centralised Processing for Accelerated Corporate Exit (C-PACE) on May 1, 2023. Despite this improvement, the government aims to further reduce the timeline to three months, aligning it with international standards.