Amalgamation is defined in section 2 (1B) of the income tax act 1961 where “Amalgamation is a union of two or more companies, made with an intention to form a new company.”In business, the only difference being that the surviving entity incorporates the asset base of others into its base. Amalgamation is blending of two or more companies. The shareholders of each company would become the shareholders of the amalgamated company. Amalgamation is an emerging trend of today’s business world. It results in the formation of a new, strong, stable and large company. It also results in the growth and expansion of this newly formed company. The following are the main purposes for which an amalgamation may be preferred-
- To expand the business or operations of the company;
- To carry on the business of the company more economically and more efficiently;
- To attain the economic, business and other goals of the company in efficient manner;
- To eliminate competition between the companies;
- To use economic, financial, technical and other resources efficiently;
- In the public interest (by the Central Government in exercise of the powers conferred by section 396).
A company having vulnerable financial/economic position may prefer an amalgamation with another company so as to secure itself. And the companies may adopt the concept laid down by the proverb, ‘union is strength’, the result of which may be an amalgamation.
We provide highly effectual Amalgamation Services to business enterprises. We assist our client in the merger and acquisition. We also help the local Government Amalgamation at each & every step of the process. These Amalgamation Services are accessible with us at industry’s leading prices just to give leverage to even smaller companies of the market. In addition to this, we are acknowledged as one of the best service provider in the domain of Virtual Amalgamation in India.
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