December 12, 2019
5 min read
This article lays down the complete process of company name change in India for a private limited company.
Naming a business is a hard decision, as the company’s name becomes its permanent identity and customers recognise the business from the name it chooses. However, there may arise a situation when the company is required to change its name for certain reasons. This article lays down the complete process of company name change in India for a private limited company.
There are various factors that may require the business to change its name at a later stage. These reasons for a company name change include:
Change in objectives of the business.
Change in management.
Merger or Acquisition.
The name chosen by a private limited company during the company registration process can be changed later by filing an application with the MCA. However, the process is not that easy. To change the name of a company, the consent of the shareholders must be obtained through a special resolution. The complete process for company name change in India includes the following steps:
A board meeting must be conducted to pass a special resolution for change of company name. During the meeting, the new name is finalised and along with the decision to alter the Memorandum of Association and Articles of Association. By passing this resolution, the Director or Company Secretary is authorised to file an application with the MCA to check the availability of the new proposed name.
Once the special resolution is passed to change the company name, the availability of the proposed company name must be checked. The new name must be in accordance with Rule 8 of the Company (Incorporation) Rules, 2014 and the company name availability must be thoroughly checked to ensure that the name is not taken or violates any such guidelines in any manner. Consulting a business consultant in India can help the business in checking the company name availability hassle-free. The application for name approval can be filed with the MCA after checking the availability. Give us a call at 801088006.
Once a new name is approved by the MCA, the company needs to conduct an extraordinary general meeting and pass a special resolution for change of company name, and make amendments to the Memorandum of Association and Articles of Association.
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After passing the special resolution for change of company name, the special resolution and application of company name change must be filed with the Registrar of Companies.
The ROC issues a new certificate of incorporation after complete verification of these documents and after approving the application.
Once the new company incorporation certificate is issued, the new company name must be added in all the copies of Memorandum of Association, Articles of Association and Certificate of Incorporation issued by the Registrar.
A company name change does not have any form of impact on its existence or legal structure as the change of name of a company does not create a new company or entity. The change in the company name does not affect:
Any rights of the company.
Liabilities and debts of the company.
Legal proceedings by or against the company.
The Company (Incorporation) Rules, 2014 lays downs the guidelines relating to the undesirable names, which must be avoided by companies while choosing a name. The basic guidelines for choosing a company name include:
Avoid names that are identical or similar to other existing names.
Avoid any undesirable & offensive name.
Avoid any Generic name.
Do not choose a name that contains another country's name or the word "state".
Do not choose a name associated with the Embassy or consulate or foreign government.
Avoid any short-forms or Abbreviations in the name.
Do not choose any discriminatory, offensive, abusive words.
Do not choose any words that are violative of the Emblems Act.
Choosing and checking the new name for a company and changing the name of a company are extremely tedious and complicated processes. Talking to a good business consultant in India can make it easier for the business to complete the formalities relating to the company name change and name availability check. SeekWiser’s IVR makes it easier for businesses to talk to the best business experts- CA, CS and lawyers in India. Give us a call at 8010880066 or send us an email at [email protected] to get the best solutions for your business.
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