05 April 2010
I am a practising characterd accountant. one of my clients is interesting in acquiring an exisiting on going private limited company. so what are the procedure for it w.r.t ROC. what approvals are require. what forms are to fill. plwase advise me. it is urgent.
1) The way in which the acqusition is made i.e. slump sale, business takeover, takeover of brands, amalgamation, share purchase, etc 2) Who is doing the takeover i.e. public limited co or private limited co.
Form the point of view of the company acquiring the private limited company:
In slump sale, business takeover, share purchase and brand takeover no ROC compliance required. For amalgamations, detailed procedure required.
If the Company is public limited company, and the acquisition is made by way of share purchase, then check the investment limits u/s 372A. If borrowings are required for the acquisition, then also check the limits u/s 293(1)(d).