Name of the Company is the identity of the business, must think twice before name it, if not, no matter, the name of the Company can be changed. Change in Name Clause online India can be done by passing a special resolution in a board meeting. The Company’s name change process is processed and approved by MCA under Section 13, of companies, act. You focus on the development of your business, we – True Auditor expert team is here to take care of all these proceedings legally.
Name Of The Company – An Identity Of The Business
Name of the Company is the identity of the business throughout its run or time, hence it should be thought well before registering in such a manner that the name of the company can stay sustainable with the growth and the development of the Company. The naming process for the Company is regulated by the Companies Act, right from choosing it to any changes or alterations made thereafter. Certain do’s and don’ts while choosing with the procedure to change the name is completely explained in this article.
Mentioned Below Is The Step By Step Procedure To Change The Name Of The Company:
Conduct General Board Meeting:
The name of the company which is proposed shall be discussed by the directors of the entity. Notice of 7 days is sent to the directors to carry the board meeting of the directors to pass the needed resolution for the approval to change of the name of the company. Following are the necessary resolutions which are passed in a board meeting:
- To authorize the Director or Company Secretary to apply ROC to confirm whether that particular name is available or not.
- To fix the time, date and venue to held EGM for the approval of the new name and once it is approved, the alteration in MOA is done. The Company should make sure that no two companies can be registered with a similar or same name.
The Procedure Of Change Name Of Company
Following is the step by step procedure to be followed by the Company willing to change its name:
Check The Availability Of The Name:
The company should check the availability of the name through MCA. It should be assured that whether the same company name is registered as a company or as a trademark from the drop- down menu of “Check Company Name” and “Public Search of Trademark”.
Apply Online To Obtain The Name Approval:
Once the availability of the proposed name is checked and confirmed, it can be applied via a new web service RUN. Up to two proposed names can be applied using this form with the specified fee of Rs. 1000. In case, if the Company is changing its name, then it can attach the board meeting resolution for approval the same as an attachment to this form. After thoroughly inspecting the application, ROC either puts it to resubmission or approves the name. The name that is approved by ROC remains valid for about 20 days after the approval.
Conduct EGM Or Extra-Ordinary General Meeting:
Once the name got approved by ROC, and the name approval letter is granted by the Company, and it will conduct the EGM to pass the needed Special Resolution by the board members for the approval of name change and making amendment in MOA & AOA of the company
Filing With ROC:
Within 30 days or one month of conducting EGM file the special resolution to the concerned ROC in form MGT-14 (the form can be downloaded as a zip file format and it is available on the official website of MCA) with the all needed documents annexed with the form:
- CTC of Special Resolution authorized by the Board Members
- Notice of Extra-Ordinary General Meeting along with an explanatory report or statement
- Modified MOA
- Modified AOA
Approval From Central Government:
The concerned Company has to get the approval of the Central Government for the change of the company name and the modification done in MOA by filing form INC- 24. Copy of minutes of Extra-Ordinary General Meeting in which the Special Resolution was authorized shall be attached to this form.
New Certificate Of Incorporation:
After completing the process of the name change, ROC shall grant the new Certificate of Incorporation with the amended name sated on it. The new name will come to effective since the issuance of a new Certificate of Incorporation.
Guidelines Under Companies Act During The Process Of Naming The Company
- Companies Act 2013 specifies the terms and conditions related to naming the Company
- whether it may be Private Limited or Public Limited or OPC. The company should follow
- the conditions mentioned below while choosing the name for the Company:
- MCA checks the name proposed does not resemble any of the names which are already
- registered as a trademark or company. Just joining the separate words together or
- changing the name into its plural version doesn’t make it unique.
- MCA restricts the applied names which are too common or general, such as Wood Company Private Limited.
- The name of the Companies must start with a person name, for example, Lalitha Private Limited.
- The applied name shall be unsuitable if it violates the following terms:
- Violates Emblem & Name Act
- Violates Trademark
- Includes misleading words or offensive
- The name selected by the Company shall adjust with the objects of the Entity.
- If the Company is registered to engage in the business-related financial services such as financing, chit, fund, leasing, and so on. shall mention such activities in the name of the company.
- The name of the company should not include the words that point any constitution or any
- legal person, for instance, LLP, HUF, Trust, etc.
- The last words of a One Person Company with OPC Private Limited, Private Company
- shall end with Private Limited, and the Public Company shall end with the word Limited.
Limitations On Change Name Of Company
As per Rule 29 of Companies Rules 2014, it specifically forbids the following companies from changing its name:
- The Company that has failed to pay the matured deposit.
- A company which has defaulted to submit its annual return on time.
- A company which has failed to repay its matured debentures.
- The company that has not paid or default in paying the interest on debentures or deposits.
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