The Ministry of Corporate Affairs
("MCA") has recently notified the
provisions of the Companies Act, 2013 ("the
Act") and the Companies (Compromise, Arrangements and
Amalgamation) Amendment Rules, 2017 ("Merger
Rules") pertaining to merger or amalgamation between
an Indian company and a foreign company
("Notification").
Earlier Position
The Companies, Act, 1956 provided that a foreign company could
merge with an Indian company. However, an Indian company could not
be merged with a foreign company. This was intended to ensure that
the company that continues after the merger is an Indian company
and the Indian regulatory authorities can continue to exercise
control on such entities.
