The Ministry of Corporate Affairs (MCA) issued a notification on August 5, 2024, introducing the Limited Liability Partnership (Amendment) Rules, 2024. These amendments, effective from August 27, 2024, focus on changes to Rule 37 of the Limited Liability Partnership (LLP) Rules, 2009. The primary update involves the inclusion of the “Centre for Processing Accelerated Corporate Exit” (CPACE) in the process of LLP dissolution.
Specifically, the amendments state that all references to the “Registrar” in sub-rules (1), (3), and (4) of Rule 37 will now include the CPACE. This means that the CPACE, established by the Central Government under the Companies Act, 2013, will now play a key role in processing the accelerated exit of LLPs, alongside the Registrar. The CPACE was initially established via a notification (S.O. 1269(E)) dated March 17, 2023, and its purpose is to streamline and expedite the corporate exit process for LLPs.
The amendments clarify that for the purposes of Rule 37, the CPACE will act in conjunction with the Registrar to ensure a more efficient process for dissolving LLPs. This change is part of a broader effort by the MCA to modernize and improve the regulatory framework governing LLPs in India, making the dissolution process faster and more efficient.
By integrating the CPACE into the LLP dissolution process, the government aims to provide a more streamlined and accelerated approach for companies looking to exit the corporate framework, thereby reducing the time and administrative burden involved in winding up LLPs.
