Quick Summary
The Companies Act, 2013 regulates the incorporation, responsibilities, governance, and dissolution of companies in the country. Section 233 of the Companies Act, 2013 provides for merger or amalgamation of certain companies (Fast Track Merger) through approval of Central Government [Delegated to Regional Directors]. Section 233(1) of the Companies Act, 2013 allows mergers/demergers between (i) two or more small companies and (ii) holding company and its wholly owned subsidiary. Section 233 empow
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FAQ :
A Fast Track Merger is a simplified process for merging or amalgamating certain companies, approved by the Central Government (delegated to Regional Directors), as provided under Section 233 of the Companies Act, 2013.
Initially, mergers/demergers were allowed between two or more small companies, and between a holding company and its wholly-owned subsidiary.
The scope has been extended to include mergers between start-up companies, between start-up and small companies, and reverse flipping of foreign holding companies with Indian wholly-owned subsidiaries. Recent amendments also include two or more unlisted companies meeting loan/debenture/deposit thresholds, and various holding-subsidiary combinations (excluding listed transferor companies).
Yes, mergers involving two or more unlisted companies exclude Section 8 companies. For holding and subsidiary company mergers, the transferor company cannot be a listed company.
The latest amendments were made on 4th September, 2025, following stakeholder consultations and in line with the Budget Speech (2025-2026).
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