How to change the name of a private company?
Here, we are going to discuss how important is to change the name of a private limited company due to structural change occurs after the incorporation and registration of a company. The name of the company, in general, helps third parties to alliance their needs with the activities of a company.
When we do expansion or change of field of operation of the company, the name is required to be changed. The change of name may be required for various reasons which may include the establishment of a brand name.
The company comes into existence when following the provisions of law and if any changes in the constitutional documents of the company; it shall first be approved by the registrar of companies where it has been registered.
Changing a name requires the change in the name clause of MoA (Memorandum of Association) of a company along with the change in AoA (Articles of Association) of the company.
The change of the name of the company may be taken place due to various reasons which are mentioned below:
Voluntary change of members in a company;
The name puts geographical boundaries for a company;
The name may be irrelevant with products and services offered;
The current name is not easy for the consumers to spell or remember or it is too long to pronounce;
The current name is very general to establish the distinct identity in a market;
Directed by the registrar for changing the name of a company;
To enhance the brand value of a company;
Change of name is required due to change in activities, change of the main object of the Pvt Ltd company. The procedure to change the name of the company by the reason of a change in activities or otherwise noted below in detail.
Procedure for change of name in private company:
Meeting of a board of directors:
The consent of the board of directors may be accorded for the proposed change in the name of the company. The said change along with the consent, an authorization will be given to one of the directors for making the application of name approval and to take the necessary steps to effect the changes.
Checking the name availability:
The name which is proposed to be applied would be available for the application and hence it needs to be chosen carefully and wisely.
Application and reservation of name:
The reservation of name shall be made in INC-1 e-form on MCA portal. The said form can be filed with a maximum of 6 names and in the order of preferences. When the name got approved by the MCA within a period of 60 days, the company can accord the consent of members and complete the requisition procedure within that period.
Consent from the members of a company:
The proposed name can be approved by the members before proceeding with any step. The consent of the members can be conferred in the Extra-Ordinary General Meeting (EGM) of the members by passing a special resolution (have to get the consent of 75% members).
Filing of E-forms with MCA:
Once you got the consent for the proposed name change from the shareholders, form for changing need to be filed on the MCA portal.
E-form MGT-14 can be filed for intimation of a special resolution passed and E-form INC-24 will be filed for seeking the approval from the central government for the proposed change.
Issuing the fresh certificate of incorporation:
If the registrar satisfied with the application and the supporting documents which are furnished along with the application. Once the registrar approves the application, will issue a fresh certificate of incorporation (COI) with the new name. The company name change will be effective only after issuing the certificate of incorporation.
Effect of change of name:
The name which is proposed to be changed will be effective only after the issuance of Certificate of Incorporation. After the issuance of COI, the company will take a few steps for updating the changes were made.
Displaying the name of the company:
After issuing the certificate of incorporation, the name has to be displayed with the previous name. The previous name of the company has to be mentioned along with the new name for a period of two years from the change of name of the company.
Alteration of AoA and MoA:
When you receive the approval from the central government, the company may adopt the altered AoA and Moa of the company which has been furnished while filing the INC-24. All the copies of AoA and MoA will be replaced by the altered copies of MoA and AoA. In addition to the replacement of AoA and MoA, the name will be updated wherever it is written or appears.
Change in PAN:
After the issuance of the incorporation certificate, an application will be made to update the date of the PAN and issuance of the new PAN card with the new name.
Updating of data with ministries:
The company will make an application in order to update the name on their registers. The application can be made to the registries or ministries where the company is registered.
Ratification of contracts:
The contracts which are entered in the name may be ratified by the parties of contract and the name will be adapted to the said agreements or contracts.
The change of the name may be a tedious task, the advice and assistance of a practicing professional are required to carry this procedure if the appropriate guidance is not obtained.