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-
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.