The name of a company may have to be changed for a number of reasons including change of objective of the business, change of management, rebranding, etc., The name of the company can be changed at any time with the approval of the shareholders and Ministry of Corporate Affairs (MCA). In this article, we look at the procedure for the company name change. The change of name of a company will not create a new company or new entity.
Therefore, the change of company name shall not:
- Affect any rights or obligations of the company
- Render defective any legal proceedings by or against the company
- Not affect any legal proceedings by or against the company and pending in the old name; they may continue in the old name
REQUIRED DOCUMENTS FOR THE COMPANY NAME CHANGE:- (All copies of documents should be self attested by the customer)
- Certificate of Incorporation subsequent to change in name of the Company
- A statement of detailed reasons for the change in the name of the company
- Three copies of the specimen of printed stickers for affixing on share certificates. (Showing new name)
- Copy of receipt of payment of the Annual Listing Fees for the current year and arrears.
- Brief details about the current line of business of the Company
- Date of last name change of the Company & Details name change history from the date of incorporation.
- An audited copy of the financial results for the last one-year
- Names of stock exchanges where the company’s securities are presently listed
- When a company changes its name and line of business, it should include the turnover, income etc.
Steps Involved in the Process of Company Name Change:
1. Holding a board meeting to pass the resolution.
2. Checking for the availability of company’s name.
3. Passing special resolution for the change of name.
4. Submitting the application for the approval of company name change.
5. Issuing of the new certificate of incorporation.
6. Making changes in Memorandum of Association and Articles of Association.
7. Change in the object requires alterations or amendments in the Memorandum of Association of the Company. The significant element of the memorandum is contained by the main object clause due to the fact that the clause represents the business nature of a company. It concludes that change in main objects implies the change in the business nature of the company.
The following forms need to be filed:
1. The existing company needs to reserve the name through ‘RUN’.
2. After the name is approved, MGT-14 (necessary resolution for alteration of Memorandum of Association and Articles of Association (MOA and AOA) needs to be filed.
3. eForm INC-24 (Application for approval of Central Government for the change of name) needs to be filed to give effect to change in name.