A merger is the process in which two or more companies combine to become one business. Companies usually merge to expand their market, improve efficiency, reduce costs, or strengthen their competitive position. After a merger, one company may continue to exist or a new company may be formed, depending on the structure of the transaction.

Another common name for a merger is amalgamation. Depending on the legal and business context, it may also be referred to as a business combination or corporate consolidation. In India, the terms merger and amalgamation are often used interchangeably, although they may have distinct legal meanings under certain accounting and corporate law provisions.

The four main types of mergers are horizontal, vertical, market-extension, and conglomerate mergers. A horizontal merger combines competing businesses, a vertical merger joins companies in the same supply chain, a market-extension merger expands into new markets with similar products, and a conglomerate merger combines businesses operating in unrelated industries. Each type is used to achieve different strategic and growth objectives.

Amalgamation is the process of combining two or more companies into a single business entity. In many cases, the original companies cease to exist, and a new company is formed that takes over their assets, liabilities, and operations. Businesses choose amalgamation to achieve growth, improve efficiency, expand market presence, or strengthen their competitive position.

Another name for amalgamation is merger, as both terms refer to the combination of two or more companies into a single business entity. Depending on the context, it may also be referred to as a business combination or corporate consolidation. In India, the terms merger and amalgamation are often used interchangeably in corporate restructuring, although they can have distinct legal meanings in certain situations.

The two types of amalgamation are amalgamation in the nature of merger and amalgamation in the nature of purchase. In a merger, the businesses and shareholders of both companies continue as a combined entity. In a purchase, one company acquires another, and the acquired company's shareholders generally do not retain a proportionate ownership in the resulting business.

A merger usually involves one company being absorbed into another, with the surviving company continuing to exist. An amalgamation combines two or more companies to form a new legal entity, and the original companies cease to exist. Although the terms are often used interchangeably in India, amalgamation generally results in the creation of a new company, while a merger may not.

No — mergers between eligible companies, such as small companies, startups, holding-subsidiary structures, and certain unlisted companies meeting prescribed conditions, can use the fast-track route under Section 233, which goes to the Regional Director instead of the NCLT. Companies that don't qualify for fast-track must go through the regular Sections 230-232 NCLT process.

A fast-track merger is a simplified process available to certain classes of companies under Section 233 of the Companies Act, 2013. It is generally used for eligible small companies and holding company-wholly owned subsidiary mergers, subject to legal requirements.

A fast-track merger under Section 233 typically takes around 60 to 90 days from filing to Regional Director confirmation, while a regular NCLT merger under Sections 230-232 usually takes several months, depending on Tribunal bench workload and whether objections are raised. Multi-state group mergers involving several NCLT benches have historically taken the longest, though a proposed 2026 amendment aims to shorten this significantly if it comes into force.

Employees, existing contracts, licenses, and liabilities of the transferor company transfer automatically to the transferee company under the sanctioned scheme, without needing individual novation agreements. The scheme of amalgamation should still explicitly address employee terms and contract continuity to avoid disputes later.

Yes — in most states, the Tribunal's or Regional Director's order sanctioning the scheme is treated as a conveyance instrument, and stamp duty applies on the value of assets transferred. Stamp duty rates and treatment vary by state, so this needs to be planned into the merger timeline and cost, not treated as an afterthought.

Yes, this is one of the more common reasons businesses use mergers — combining a loss-making or dormant entity with a profitable one can allow carry-forward losses to be used, subject to conditions under the Income Tax Act that need to be checked before the scheme is finalised. This tax angle should be reviewed alongside the Companies Act structuring, not separately.

To begin, we typically need the MOA/AOA and latest audited financials of all companies involved, their board resolutions approving the intent to merge, and shareholding details — the formal valuation and scheme drafting follow from there.