Cross BorderM&ARestructuringIndia
AMLEGALS / Services / Cross Border
Cross Border · M&A · Restructuring

Cross border merger and corporate restructuring advisory

Inbound and outbound cross border mergers, schemes of arrangement, demergers, slump sales, business transfer agreements and NCLT representation.

Counsel that connects the technical, the commercial, and the legal, across ten offices in India.
Companies Act
2013 Section 230-234
NCLT
Scheme Approval
FEMA
Cross Border
10
Offices
01

Cross border merger framework

  • Section 234: cross border merger of Indian company with foreign company (inbound and outbound) with RBI approval.
  • Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: Rule 25A cross border merger conditions.
  • FEMA (Cross Border Merger) Regulations, 2018: permitted jurisdictions, valuation, pricing and RBI compliance.
  • Tax implications: Section 47 exemptions, capital gains, stamp duty and indirect transfer provisions.
02

Domestic restructuring and schemes

  • Scheme of arrangement under Sections 230 to 232: merger, demerger, capital reduction and compromise.
  • NCLT convened meetings, creditor and shareholder approval and NCLT sanction.
  • Fast track merger under Section 233: holding subsidiary or small company mergers without NCLT.
  • Slump sale under Section 2(42C) of the Income Tax Act: business transfer as a going concern.
03

Regulatory approvals and coordination

  • CCI merger notification (if thresholds met) and competition clearance timeline.
  • Sectoral regulator approvals: RBI (banking), IRDAI (insurance), SEBI (listed entities), TRAI (telecom).
  • Tax authority objections (Income Tax, GST) to NCLT schemes.
  • Stock exchange and depository compliance for listed entity restructuring.
04

How AMLEGALS assists

  • Cross border merger structuring with FEMA and RBI compliance.
  • NCLT scheme of arrangement drafting and representation.
  • Demerger and slump sale transaction advisory.
  • Multi regulator coordination for complex restructuring.
Answers

What clients ask before they commit.

Short, direct, on the record.

01Can an Indian company merge with a foreign company?

Yes, under Section 234 of the Companies Act, 2013 read with the FEMA (Cross Border Merger) Regulations, 2018. The foreign company must be incorporated in a jurisdiction notified by the Central Government. Both inbound (foreign into Indian) and outbound (Indian into foreign) mergers are permitted with RBI prior approval.

02What is a fast track merger in India?

Section 233 allows merger between a holding company and its wholly owned subsidiary, or between two small companies or between a small company and a section 8 company, without NCLT involvement. The scheme requires approval of members holding 90% value, creditor consent and ROC/OL approval within 30 days.

03How is a slump sale different from a merger?

A slump sale transfers a business undertaking as a going concern for a lump sum consideration without individual asset valuation. A merger involves amalgamation of the entire company with court (NCLT) or statutory approval. Slump sale does not require NCLT approval and has different tax treatment under Section 50B.

04How long does an NCLT scheme of arrangement take?

Typically 6 to 12 months from filing to NCLT order, depending on the complexity, number of regulators involved and NCLT bench workload. The process includes notice to regulators, convened meetings, publication of notices and final hearing.

Engage AMLEGALS

Discuss a cross border merger or restructuring

Share the transaction structure, jurisdictions and regulatory context for a confidential preliminary assessment.

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