The name of a company can be changed at any time after its incorporation after following certain rules & regulations, as prescribed under the Companies Act, 2013. The company name change does not impact the existence of the company, which leaves all the assets and liabilities unaffected.
Changing a company’s name sums up to a significant moderation in the Memorandum of Association and Articles of Association that needs to be done. Fresh Certificate of Incorporation will be issued by RoC in the new name after updating the Register of Companies.
Various situations when a company may change its name
- Conversion of the company from private limited to public limited (Eg. Reliance Industries Private Limited to Reliance Industry Limited)
- Conversion of the company from public limited to private limited (Rajan Limited to Rajan private limited)
- Change of name from ABC limited to XYZ limited (Vishal Retail Limited to V2 Retail Limited)
- Voluntarily changing the Name of the Company (Raj Industries Limited to Patel brothers Limited)
- Change of Name after Change in Business Objective (Khandelwal Wires Limited to Khandelwal Plastics Limites)
- Enhancing Brand Value by changing the name (Rebranding)
- Discard boundaries assumed by name (Gujarat Bottles Limited to Indian industries Limited)
- Any other mode of restructuring as permitted under the Companies Act.
Note: These names in examples are just assumptions and do not relate to any real companies.
Procedure for Changing the name of the Company
Step-1: Conduct Board Meeting
Notice of 7 days is issued to the directors to conduct the board meeting to pass the necessary resolution for the approval of the name change. To fix the date, time, and venue to conduct EGM to approve the new name after it is approved and for the alteration of MOA
Step-2: Check the Name Availability
The company shall check the proposed name through MCA Website and also for trademark and domain availability.
Step-3: Apply for name reservation
Once the name is checked, two names can be applied via web service RUN after payment of Rs. 1000 along with board resolution for authorizing the same as an attachment. After, scrutinizing the name, either it is approved or sent for resubmission.
Step-4: Conduct Extra-Ordinary General Meeting:
Once the name is approved and the name approval letter is received, the Company shall call and convene the EGM to pass the necessary Special Resolution for approval of name change and making amendment to MOA & AOA.
Step-5: Filing the relevant forms:
Within thirty days of filing the MGT-14, form INC-24 must be filed with ROC together with the necessary fee. This can be needed for getting approval from the central government for the new name. Bound documents conjointly ought to be enveloped with these 2 forms.
Step-6: New Certificate 0f Incorporation:
After the examination of all the documents by the ROC, a brand new updated certificate of incorporation can be issued, reflective of the name amendment.
This is the simplified version of the entire method.
Documents required for changing the name of Company
- Current Certificate Of Incorporation
- MOA and AOA in word format
- List of Directors and Shareholders
- Digital Signature of the directors
- Proposed name(s) in order of preference
Apart from the above-mentioned documents. There are a few documents that are required to be submitted along with the ROC form and they are:
- RUN form (Copy of Board Resolution & Consent of TM owner)
- MGT- 14 AND INC-24 (EGM Notice along with an explanatory statement, Certified copies of EGM Resolution and Minutes, Altered MOA and AOA & Attendance Sheet of EGM)
Reason for change in name of the Company
The company might decide to change their companies name due to the following reasons
- Change of Ownership: The company might change its name because of the new owner which would signify their authority on the brand and give it a new direction.
- Copyright: If the company’s name exposes to some copyright issues then they might change their company’s name for safety.
- Repositioning: The company might want to enter a new market with different products or services with a new name
- Voluntary Change of Name: If the company thinks that the current name isn’t suiting the company they might wish to change their name. It is legal and normal to change the company’s name voluntarily.
- In Compliance of ROC Direction: The ROC can also make an order to change the name of the company due to a complaint filed by any other company claiming priority of use of the name of Trademark.
Change of name of the company can be a time-consuming and grueling task not because of only the lengthy documentation procedure but also require thorough knowledge and expertise as well. By hiring Udyog buddy professionals, the process can not only get straightforward but also a simple and speedy process.