Change Company's Name in India
After all the hush and rush you get your company name and then you realize that your name is outdated or does not reflect your nature of the business. Hence, you decide to change company name but eventually, you bogged by the circle of how and what and when.
So, don’t worry because you are completely permitted to change company name whenever you want. People often a times think that it will be costly or will take a lot of time to change company name or that a new company must be incorporated into the new name. But on the other hand, you can easily and in no time change your company name.
The temptation for a new name often comes to our mind as a rebranding process like when everything else is getting a refresh, following new brand strategy, updating messages or a fresh design then the old name needs some scrutiny. Like the company Sound of Music that sold stereos initially and with the time they expand their business and include VCRs and Home appliances, then the old name has a limited scope so that is why they change company name and Best Born was Born.
Therefore, the question arises how to change company name in India or what is the procedure to change company name. However, before going down the road to change the name just make sure the change name shall not-
- Affect any rights and obligations of the company
- Render any defective legal proceeding against the company
- Shall not affect any old proceeding that is pending against the company with the old name
How to change Company name in India ?
The following are the steps that you need to follow for a change company name –
- Step- 1 - Passing a Board Resolution with mutual agreement
A Board Resolution should be passed to change the name of the company in a Board meeting. In the Board Meeting, the board of directors will discuss and later may approve the change in name by authorizing a Director or the CS of the company to check name availability with MCA and calling Extra- Ordinary General Meeting for passing a Special Resolution.
- Step-2- Passing a special Resolution in Extra General Meeting
Once the company is approved by the Ministry of Corporation, the company is in position to call the extra general meeting where a special resolution will be passed for changing the name and make amendments in the Memorandum of Association and Articles of Association.
- Step-3- Availability of name will be checked
The authorized Director or the CS will check and apply in form INC-1 to MCA for checking the availability of the name and if it is available then getting approval. The procedure is the same as it is adopted at the time of initial name approval.
- Step-4- Applying to the Registrar
A special resolution with MGT-14 Form will be filed to ROC within 30 days of passing the special resolution. In to the bargain, following are the documents that will be submitted along with MGT- 14:
- 1. Certified copy of the Special Resolution
- 2. Notice of Extra General Meeting
- 3. Explanatory statement to EGM
- 4. Altered Memorandum of Association
- 5. Altered Articles of Association
Once MGT-14 is filed, the company needs to file INC-24 to ROC to grant an approval of the central government for change company name along with the required fees.
In INC- 24, reasons of the change company name, detail about the number of members who attended the EGM, number of members voting in favor/ against the resolution and percentage of shareholding are also mentioned.
- Step- 5- Filing of RUN Form
According to the latest notification, any company who wants to change their name will file a RUN form to ROC for the change of the name by creating a login id on MCA Service. You need to enter your CIN or Corporate identification Number using RUN form to reserve a name.
One the approval is granted the reserved name shall be valid for 60 days from the approval and by the time you need to file your new incorporation of the certificate.
- Step-6- Certificate of Incorporation
If the Registrar of Companies is satisfied with all the submitted documents then they will issue a new certificate of incorporation because the change in the company name isn't completed until the new certificate of incorporation is issued by the ROC.
- Step-7- Incorporating company name in MoA and AoA
Once you are done with your certificate of incorporation, the new name of the company should be incorporated in all the copies of Memorandum of Association and Article of Association.