If your company name is outdated or it no longer reflects the nature of your business. Do you find it too complicated or too generic to use, or you planning...
Always there is this one question that most of the small business owners often ask is how to get their company’s name changed? It’s pretty natural for a business to grow and get evolved and change its direction within a course of time and that’s why the name you had chosen during the time of incorporation of your company may no longer be fitted with what you are doing at the present. And so you think of picking a name that is rather more appropriate to the flow of your business. The question here arises here is that whether there is a way to simply change company name without having to go through all the process all over again?
So looking at it from a legal perspective, the process of company name change is a lot more than just notifying your customers that you have made a change in company name. But it is not that complicated as well on the other hand.
Your very own business name is your business’s cornerstone as it represents your company’s brand image, its products or its market in general. But just be very sure about following the proper legal steps in order to avoid potential mess or issues. The name you choose for your company is considered as one of the prime identities of your business. The change in company name may be required when it is no longer suits the work you are doing in your company anymore.
What Are The Laws Involved?
According to the section 13 of companies act of 2013, there is a requirement of passing the special resolution in a general meeting of the company, this has to be along with the approval of the central government.
Promoters of your company may change the name of your company anytime. The company shareholders and the and the MCA which is the short abbreviation for the ministry of corporate affairs will have to first agree with the change in company name. Another point to be noted is that the change in company name online does not change the legal entity that the company is and will not get impacted either by the change in company name. This means that all its assets and its liabilities will also continue to be the same as ever, hence it’s solely the name that changes.
Step by step process of Change in Company Name
Step 1: Board resolution
A board meeting is supposed to be conveyed and a board of resolution is required to be passed regarding the change in company name. It is authorized by a director or a company secretary for making an application and applying to the ministry of corporate affairs for certain of availability of a new proposed name for the company. In the same general meeting, it is also conveyed about altering the memorandum of association and the article of association.
Step 2: Check Company Name availability
Now once your resolution is passed, and asserting availability of the supposed proposed new name of the company. An authorized person will prepare an application for the change in company name to the MCA. The procedure is similar to the name application during the process of incorporation of a new company. And this why it’s under the companies acts 2013 naming guidelines.
Step 3: Pass Special Resolution for Changing Company Name
Once the available new name is approved by the Ministry of Corporate Affairs, a company is required to conduct a general meeting for the consequential changes in the MOA and AOA.
Step 4: Application for approval of Company Name Change
Once this resolution is passed in the meeting, an application and special resolution for approval of the change in the company name is filed with the registrar of the companies. An application for the company name change has to be made in the prescribed form along with the required fee amount.
Step 5: Issuance of New Certificate of Incorporation
Once the registrar is satisfied with your provided application he will issue a new certificate of incorporation. At this stage, you can be sure of the fact that the procedure here is almost complete and it immediately effective on the issuance of new incorporation certificate by the registrar of companies.
Step 6: Make Changes to MOA and AOA
Sequential to the issue of the new incorporation certificate, steps are required to be taken for insertion of the new company name in all the copies of MOA and AOA and certificate of incorporation that’s been issued by the registrar.