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Change Company Name
Changing a company name refers to the process of altering the legal name of a company. It involves registering a new name for the company with the relevant government authority and updating all legal documents and records accordingly. Changing a company name can be done for various reasons, such as rebranding, reflecting a change in the company’s ownership or structure, or to avoid confusion with another company’s name.
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Overview of Change Company Name
As per the companies act, 2013, a company has a separate legal entity. So, it must have its name & the same is mentioned in MoA & AoA. But there may be situations like change in objectives, change in management, change in a business model, rebranding, etc. which necessitates the idea of changing the name of company or LLP. So, the name of the Company /LLP can be changed even after its incorporation anytime as per the procedure prescribed in S. 13 of the Companies Act, 2013. To change the name of a company, shareholder’s approval is required along with approval from the Ministry of Corporate Affairs. The change of name of a company or LLP, however, has NO impact on:
• The legal entity of the company or LLP & continuity of its business
• Rights & obligations of the company or LLP
• Legal proceedings pending in the old name
Hence, the change in name of the company or LLP does not create a new entity; & all assets and liabilities of the entity would continue, while only the name of the company would have been changed.
The process of change of company name contains various steps like a first & foremost requirement of the passing of a board resolution, obtaining name approval from MCA, passing of a special resolution and applying for approval of new company name to the MCA. If the MCA accepts the application, a new certificate of incorporation is issued. After obtaining the new certificate of incorporation, changes must be made to incorporate and change the MOA and AOA of the company as well. Legal Suvidha Providers will assist you in all legal guidance and documentation involved in the change of name of the entity. Total Time taken to complete the whole process is 20-25 working days.
The important thing that is to be kept in mind is that the company which has changed its name should ask those companies in which it is holding shares, to substitute its old certificates with new ones.
Advantages of Change Company Name
- The change of name, by no means, shall affect any rights/obligations of the company and any legal proceedings continued against/by the company in its former/new name.
- The legal proceedings commenced by the company in its old name can be continued under the new name.
- The entity of the company continues despite such change.
- The company is not dissolved nor does any new company come into existence.
- By such change, the constitution of the company is not changed, only the name changes.
Step 1: Board Resolution: The board needs to authorize a change in the name of the private limited company and authorize a director or company secretary to apply for the same to the MCA.
Step 2: Check Availability: The application sent by the director or company secretary (or any authorized person) will be filed with the MCA. The procedure is similar to the application submitted during company incorporation and the new name should be in adherence to the naming guidelines given in the Companies Act, 2013.
Step 3: Special Resolution: If the name is approved, the company must hold an extraordinary general meeting to pass a special resolution for the change of company in the name and the same changes in the MoA and AoA.
Step 4: Approval of Company name Change: Once the special resolution is passed, you will need to file this with the Registrar of Companies. A requisite form i.e. MGT – 14, along with the requisite fee for the name change, as given by MCA, needs to be submitted to get the final approval. This is the crucial stage, and once you are through this, the next procedures are simple.
Step 5: New Certificate of Incorporation: If the Registrar is satisfied with the application, it will issue a new certificate of incorporation. This certificate is a clear indication that the name of the company has been changed, and all the documents and any communication will be effective with the use of the changed name after they are incorporated in MoA and AoA. Also, eForm INC – 24 (Application for approval of the central government for a change of name) needs to be filed to give effect to change in name.
Step 6:Alter the MOA and AOA: With the new certificate issued, you can now alter the MoA and AoA. This will finalize the procedure. Although a new incorporation certificate is issued (with the changed name), all the other legal formalities remain the same.
1. Name of the Company according to preference.
2. Reason for change name of the Company
3. Name & CIN of the Company.
4. Details of the Directors with DIN.
5. Name & DSC of the authorized Director for filing form INC-1.
6. Board Resolution for change Name clause of MOA of the Company
7. Board Resolution for Notice of EGM of the Company.
8. Notice of EGM with explanatory Statement.
9. Special Resolution for alters name clause of MOA.
10. Altered MOA & AOA.
11. Minutes of the members meeting (EGM).
12. If a change of name is due to change in the main activity of the company, a certificate from a chartered accountant regarding turn over details from a new activity should be enclosed.
FAQ's Change Company Name :-
No, change in the company name will not create any new entity.
The Name of the company must be according to the Companies Incorporation Rules 2014.
The Name of the Company will be effective from the date of the issue of Certificate.
CG approval is required when there are addition and deletion of the word “Private”.
ROC must be intimated within 30 days of passing the resolutions in the general meeting.
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