The Noida Authority board has approved a reduction in the transfer fee for operating industrial units from 10% to 7%, along with changes giving businesses more time to complete construction, begin production and report changes in ownership or company structure. The revised provisions will take effect after the Authority issues an office order.
The decision is expected to provide relief to entrepreneurs transferring operating industrial units in Noida. However, the revised fee remains higher than the earlier 4% rate, which had been increased to 10% under the Unified Regulations-2025.
The Authority has also set out time-extension rules for industrial plots that have not completed construction or started operations within the initial period. For plots measuring up to 20,000 square metres, the initial period will be three years. Plots larger than 20,000 square metres will receive an initial period of five years.
After the initial period ends, a maximum extension of three years can be obtained. The fee for the first additional year will be 3% of the applicable amount based on the plot area, followed by 5% for the second year and 7% for the third year. Each extension will be granted for a maximum of one year at a time.
The rules also reduce the charge for failing to report a change in company shareholding within the prescribed period. The penalty has been lowered from Rs 500 per day to Rs 300 per day.
A procedural change will allow a private limited company to be converted into a limited liability partnership through a declaration deed in specified cases. This will apply where all shareholders become partners in the LLP in the same proportion and the company’s actual ownership or control does not change. The change in the entity’s form can then be recorded in the Authority’s records.
The Authority has also amended provisions concerning family-related share transfers. The transfer of shares from a mother-in-law or father-in-law to a daughter-in-law will be included in the list of family relationships eligible for fee exemption. Transfers between other family relationships recognised under the relevant government notification will also receive exemptions under the applicable rules.
The changes will apply to pending applications as well as applications received after the office order comes into force. Fees deposited under permissions issued before the order will not be refunded or adjusted, according to the Authority’s stated provisions. The next formal step is the issuance of the office order, which will determine when the revised rules become operational.
