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 distinction 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 company which is undertaking the activity. 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 or more efficiently;
To attain economic, business and other goals of the company in efficient manner;
To eliminate competition between the companies;
To use economic, financial, technical and other sources 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.
What VJM & Associates Offers
We provide highly effectual Amalgamation Services to business enterprising. We assist our client in the merger and acquisition. We also help in local Government Amalgamation at 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 providers in the domain of Virtual Amalgamation in India.
We are committed to help clients to achieve world-class operations. We develop, define and assist in implementing operational strategies and help our clients make lasting improvements to their performance. We assist our clients to manage risk and uncertainty, from the Boardroom to the network.