is there a legal procedure to split a private limited company

558 votes

Please take note of following -
1. You may go for the option of split off or spin off, or
2. You may opt for the option of demerger
3. You can also think on the line of subsidiary company making your current company a holding company.
All these works are being undertaken either at the National Company Law Tribunal or at the concerned High Court of the state depending upon the situation or on jurisdiction.

Advocate Pulkit Prakash LawRato

754 votes

Sir,

You can certainly split the company however there are ways to achieve the some. There are demerger scheme under which you may achieve your goals.

We would require more information to guide you accordingly.

Thanks
Saurabh

Advocate Saurabh Kumar LawRato

976 votes

Company is legal entity and the share is property of the company you can sale it only, it cannot divided among the directors. I you want get the value of your shares in the company either you sale it or you may claim benefit as per share, there is no provision in law for partition of the company.

Advocate Rajesh Kumar LawRato

615 votes

Hi,

Legally, there is no way of splitting the company into 2 parts. However, the the result which you want to achieve by splitting the company is possible and can be legally structured in terms of separating the business of the company into 2 by way of a business transfer, into another company or demerging the same business into another entity.

There are other ways possible, which can discussed further in greater detail, upon understanding the problem and designed result.

Thanks,
NB.

Advocate Nakul Batra LawRato

746 votes

Yes you can do a demerger or a slump sale (i.e. Purchase of the Business Undertaking) wherein the employees, assets and liabilities in relation to that portion of the business can be transferred. There will be legal,tax and stamp duty related issues. Happy to discuss further.

Advocate Shivam Tandon LawRato