The company name can be changed by the business owner any time after its incorporation. Some of the major reasons for it can be changes in the model, rebranding, change of promoters, etc. For a business name change, shareholders and Ministry of Corporate Affairs’ approval is required. The company name change does not impact on its existence or legal entity. Hence, all the assets and liability of the business remain unchanged and only the name changes.
The company name change is not that difficult, it requires board resolution passing, obtaining new name approval from MCA, passing a resolution for it, and applying for the new business name. If the name is accepted by MCA, a new name incorporation certificate will be issued. And once the new certificate is received, changes must be immediately done in the Memorandum of Association and Article of Association.
Procedure for Changing Company Name
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The first step is to convene a board meeting to pass a resolution for the change in the business name. The company Director or Company Secretary will have to draft an application to the MCA in order to ascertain the availability of the proposed name. The resolution for altering MOA and AOA can also be passed. And in the case there is only one Director in the company, he can pass a resolution for the same.
Checking Company Name Availability
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Once a resolution is passed with the proposed new company name, the authorized person to take things further can draft an application to MCA. The procedure for the name application is the same as that of the one filed during the incorporation of a private limited company. So, it is mandatory that the name must be as per the Companies Act, 2013.
Special Resolution for Business Name Change
After getting approval for a new name from MCA, the company/business has to conduct a general meeting. In this meeting, a special resolution will be passed for a change of company and its effects on MOA and AOA.
Approval Application of Company Name Change
Once the special resolution is passed, an application for company name change must be filed with Registrar of Companies. Requisite fee along with application in Form 1B must be submitted.
New Certificate of Incorporation – Issuance
If the Registrar of Companies is satisfied with the application for a business name change, he would issue a new certificate of incorporation. Noteworthy, the new name for the company would be effective from the issuance of the new incorporation certificate.
Changes in AOA and MOA
After the issuance of the new name incorporation certificate, the next step is to make a change in MOA, AOA, and other certificates issued by the Registrar.