After
company registration and during the course of business the members can decide
to change the legal name of the Company due to many reasons. In this article, we are going to discuss in detail what
could be a reason for such change in name of the company and are the procedure
defined for implementing such change under Companies Act, 2013.
Reasons to Change Company Name
There can be
various factors influencing the decision to change the company name. We have listed
out a few possible factors which can be a reason behind the decision of
changing the name of the organization:
1.
Change
in Business activity
If
you are planning to change the main objects of your company entirely or even
adding a different business vertical you can decide to change the company name.
This change can be done with a view to making
sure that the name is in reference to the new or changed the main objects of the organization.
2.
Name
is outdated
If
your company has been in operation from a
number of years and you feel that the name with which it is operating is
outdated then you can change the name of the organization after discussion
among all the members. This is done in cases where the name either does not
have a recall value or is old fashioned.
3.
Change
in ownership
If
there is any kind of changes happening in the ownership of the organization as
a result of the transfer of business then
it can also lead to a change in company
name. The new owners can choose a name more preferred by them.
4.
Acquisition,
Merger or Takeover
Apart
from the above-mentioned reasons the
change in company name can also happen as a result of acquisition, merger or
takeover of the business.
Company Name Change Procedure
In order to
change the name of a company following steps are required to be followed by the
company:
STEP 1: Pass Board resolution
The very
step is to conduct a board meeting and pass a BR to appoint an authorized representative for filing an
application with MCA for name availability and also to issue notice for conducting
an EGM for change
company name.
STEP 2: File Name reservation Application
The second step is to apply for name reservation through Reserve Unique Name
facility available on the MCA portal. You have an option to apply with a maximum of two names. While filing RUN chooses the name change option and enters your Corporate Identification Number
(CIN). After verification, the
authorities will approve a name and issue name allotment letter
STEP 3: Pass Special Resolution
Call an
Extraordinary General Meeting (EGM) to discuss the issue of the company’s name change and incorporating such
changes in AOA and MOA of the company. After discussion passes a Special Resolution of the effect.
STEP 4: File MGT-14
MGT-14 is
required to be filed within 30 days of passing special Resolution. Following
documents must be submitted as attachments:
·
Copy of notice of EGM along with explanatory
statement
·
certified Copy of special Resolution
·
Altered copies of AOA and MOA
STEP 5: File e-Form INC-24
Once MGT-14
is approved by the authorities the next step is to apply for central Government
approval for the same. As central government approval is essential for changing
the name of an already registered company. For this purpose, an application is required to be filed in e-Form INC-24
(Application for approval of Central Government for a change of name). This form is required to be submitted along with
the applicable fees of Rs. 2500/-. Information relating to the Extraordinary
General Meeting along with reasons of this name change is to be mentioned in
the e-Form INC-24.
STEP 6: Issuance of Amended COI
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