As you all know that company is a separate legal entity. It must require having a name of its own to establish its Separate identity. The name of the company is a sign of its independent existence. The first clause in the Memorandum of Association (MOA) of the company states the name by which a company is known. The company may adopt any suitable name provided it is not undesirable.
The Company after incorporation can change their name by following way:
(a) Conversion of name from private to public, or
(b) Conversion of name from public to private, or
(c) Change of name from ABC limited to PQR limited.
Change in Name clause of the Company involves alteration of Memorandum of Association (hereinafter referred to as “MOA”) of the Company. Section 13 of Companies Act 2013 regulates the process of amendment in Memorandum of Association is applicable to all companies. All clauses of MOA except Capital clause can be altered by following the provisions of Section 13 of Companies Act, 2013 by passing special resolution.
Section 13 of the Companies Act, 2013 deal with change of name which says that the name of the company can be changed by a special resolution and with the approval of the Central Government. Approval of Central Government is not required if the change relates to the addition/deletion of the words “private” to the name.
Sub Section- 2 of Section 4 of the Companies Act, 2013 provides that no company shall be registered by name which:
- Is identical with or resemble too nearly to the name of an existing company registered under Companies Act or any previous company law, or
- will constitute an offence under any law for the time being in force, or:
- is undesirable in the opinion of the Central Government.
Sub Section-3 without prejudice to the provisions of sub-section (2), a company shall not be registered with a name which contains unless the previous approval of the Central Government has been obtained for the use of any such word or expression:
- any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Central Government, any State Government, or any local authority, corporation or body constituted by the Central Government or any State Government under any law for the time being in force; or
- Such word or expression, as may be prescribed.
Alteration of Name shall not allow to following Companies:
The change of name shall not be allowed to a company:
- Which has not filed annual returns or financial statements due for filing with the Registrar or
- Which has failed to pay or repay matured deposits or debentures or interest thereon
STEPS FOR ALTERATION IN MEMORANDUM OF ASSOCIATION:
STEP – I: Convey Board Meeting of Directors
- To held Board meeting first we need to Issue Notice of Board Meeting to all the directors of company at least 7 days before the date of Board Meeting along with agenda and draft resolution.
STEP – II: Held Board Meeting
In the Board we will pass board resolution after selecting the name of the company and authorize the directors of the company to make the application to ROC for name approval.
STEP-III- File – e-form- RUN with ROC:
File form RUN with ROC for approval of name along with the copy of board resolution and Approval of Owner of Trade Mark or the applicant of such application [If proposed name(s) are based on a registered Trade Mark or is a subject matter of an application pending for registration under the Trade Mark Act, 1999]
STEP-IV : Name Approval Certificate
ROC will provide you the Name Approval Certificate, if applied name is available
STEP- V: Issue Notice of General Meeting:
Notice of EGM shall be given at least 21 days before the actual date of EGM. EGM can be called on Shorter Notice with the consent of at least majority in number and ninety five percent of such part of the paid up share capital of the company giving a right to vote at such a meeting:
- All the Directors.
- Auditors of Company
The notice shall specify the place, date, day and time of the meeting and contain a statement on the business to be transacted at the EGM.
STEP- VI: Hold General Meeting:
- Check the Quorum.
- Check whether auditor is present, if not. Then Leave of absence is Granted or Not. \
- Pass Special Resolution.
- Approval of Alteration in MOA.
STEP- VII: Filing of form with ROC:
A. File Form MGT-14 (Filing of Resolutions and agreements to the Registrar under section 117) with the Registrar along with the requisite filing within 30 days of passing the special resolution, along with given documents:-
- Certified True Copies of the Special Resolutions along with explanatory statement;
- Copy of the Notice of meeting send to members along with all the annexure;
- A printed copy of the Memorandum Article of Associations.
- Copy of Attendance Sheet of General Meeting.
- Shorter Notice Consent, if any.
B. File Form INC – 24within 30 days of passing of Special Resolution
- Notice along with Explanatory Statements.
- Certified True Copy of Special Resolution.
- Altered in MOA & AOA.
- Minutes of General Meeting
STEP-VIII: Issue of New Certificate:
After completing Above Procedure ROC will issue a New Certificate of Incorporation.