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ARTICLE · 19 SEPTEMBER 2025

Companies (Compromises, Arrangements And Amalgamations) Amendment Rules, 2025

Section 233 of the Companies Act, 2013 (‘the Act') read with Rules1 provides for fast-track merger or amalgamation of: (a) Two or small companies...

IndiaCorporate/Commercial Law
Aurtus Consulting LLP
Aurtus Consulting LLP

BACKGROUND

  • Section 233 of the Companies Act, 2013 (‘the Act') read with Rules1 provides for fast-track merger or amalgamation of: (a) Two or small companies; (b) A holding company or its wholly owned subsidiary; (c) Two or more start-up companies and (d) one or more start-up company with one or more small company.
  • The ‘fast-track route', with a simplified process, allows the above class of companies to get the schemes approved by Regional Directors (RDs) without involvement of National Company Law Tribunals (‘NCLTs'), making it a quicker and cost-efficient alternative. It is also known as ‘RD Route' in general parlance.
  • During Union Budget 2025 speech on 01st February 2025, the Hon'ble Finance Minister, Ms. Nirmala Sitharaman, inter alia, announced to widen the scope of fast-track mergers along with simplification of the related process involved.

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