Thinking of renaming your company? Here’s what you need to know!
Changing a company’s name is not an easy job! Not only does the brand risk its existing market but the uncertainty of the target audience not connecting to the new name is stressing. But, no matter what the reason and how much risk the company owners are willing to take, there are certain legal complications related to renaming a company’s name.
Certain legal obligations need to be met in order to successfully change a company’s name!
First and foremost condition is that you need to alter Clause 1 of your company’s Memorandum of Association which specifies the name of the company. Section 13 of Companies Act, 2013 stipulates the process for alteration of the name clause and states that “a company can change it’s name by passing a special resolution in general meeting and with prior approval of the government”.
Now, to conform to the stipulated law, you need to follow the below listed steps-
- Draft and issue a notice as per the provisions of Section 173(3) of the Companies Act, 2013 for convening a meeting of the Board of Directors to determine the need and prospects for changing the name of the company. The agenda of the board meeting should be to obtain a final approval to change the name of the company and decide a new name.
- Conduct a Board Meeting. In this meeting consider the proposed names for the company and authorise any Director or Company secretary to file an application with Registrar of Companies for the approval of the new name of the company. While choosing the name of the company adhere to Rule 8 of Companies (Incorporation) Rules, 2014.
- You need to get an approval from the Registrar of Companies for changing the name of the company. For obtaining the approval submit an application in eForm No.- INC 1 along with prescribed fees.
- Hold an extraordinary general meeting to pass the Special Resolution for changing the name of the company and consequent alteration of memorandum of association.
- Within 30 days of passing the Special Resolution file an eForm No. MGT 14 and attach the following documents-
- Altered memorandum and articles of association
- Certified copy of special resolutions
- Minutes of extra-ordinary resolution
The entire process can be completed on fast track basis within 20-25 days. If the process is not followed in its entirety, then it may result to various legal consequences that shall endanger the company’s future. To avoid that, always make sure that each and every legal compliance is met.