How to change Name of the Company ?
The Name of a company is its unique identity, and the same is also found in the first clause of the MOA (also known as Name Clause).
The management of the company desiring to change the Company Name would need the consent of its shareholders and the approval of the CRC(MCA) and ROC.
Alteration in name clause is provided under section 13 (2) and 13 (3) of the companies Act 2013. Change in the name has no impact on its legal entity or its existence as a corporate entity. It will not result in the creation of a new company or entity.
This article is all about the complete procedure of change of name of company in some easy steps-
Step I : Board resolution of the Company
The very first step is the drafting of the Board resolution for the Change in Name of a Private Limited Company. Notice has to be issued at least of 7 days, according to the provisions of Section 173(3) of the Companies Act, 2013. Board Members should give its principle approval for the change in the name of Company. They will suggest proposed new names of the Company and will set the Agenda for the Meeting of Shareholders. They can pass the resolution regarding:
Step II : Check whether name is available or not
In the second step regarding the checking of name availability with the MCA & Trademark for Change in Name of a Private Limited Company.
When the resolution is passed we have to check whether the proposed name is available or not. You have to submit RUN (not eform) along with the fee prescribed i.e. Rs. 1,000 only.
The proposed name should be in consonance with the name guidelines given in Rule-8 of the Companies (Incorporation) Rules, 2014 like it should not be identical with any other existing company’s name, should not violate trademark, does not include offensive words, it should be in consonance with the principle object of the companies etc.
Step III : Approval of new name by the CRC (MCA) of the company
After CRC approves the name availability they will issue a Name Approval Letter with respect to approval for the availability of name for the company. It must be taken care that the proposed name cannot be made available for a period exceeding 60 days from the date of approval and this approval does not grant any kind of right of privilege. The name is liable to be withdrawn at any time before approval of the name change, if it is found later on that the name ought not to have been allowed.
Step IV : Notice for EGM & passing of Members resolution for changing the name of the company
When the name is approved by CRC the company should call an EGM to pass a special resolution in favour of changing the name of the company.
The board has to then issue a notice to all Shareholders, Directors, and Stakeholders of the company in accordance with Section 101 of Companies act 2013.
It should accompany an explanatory statement (102) stating the reasons for the change in name with the interest of the director. The notice should be issued at least 21 days before the meeting. If 95% of the shareholders consent then EGM can be conducted on a shorter notice.
Following resolutions have to be passed at the Meeting:
Step V: Application for approval of company name change
Once the special resolution is passed in EGM in step IV, the company has to file the resolution so passed with the Registrar of Companies within 30 days of the passing of the resolution. Form MGT-14 has to be filled with filling resolution to the registrar with the following documents attached:
The company also has to submit form INC-24 to obtain approval from the Central Government for the change of company’s name within 30 days of the passing of the special resolution. You have to attach following documents:
Step VI: Issue of new Certificate of Incorporation.
Jurisdictional ROC will check and review the forms and documents filed by the company. If he is satisfied with the forms and documents were given by the Company then Registrar will issue the New Incorporation certificate stating the new name of the company. The name will be effecting from the date of issue of the certificate.
So these above steps which you have to follow to Change in Name of a Private Limited Company.
Note: Both the Form MGT-14 and Form INC-24 is Non STP Form. Generally it will take 15-20 days in the entire process.
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