A business can modify its name at any moment after it is formed. Companies are governed by company law. The process for changing its name is specified in the Companies Act of 2013. To make the procedure easier to understand, we’ve split it down into 5 simple steps in this article.
A name is a designation given to a group of things, a single object, or anything distinctive. A business, like a person, has a name. A business’s distinctive identity plays a critical part in its growth and brand promotion, and it may ultimately make or ruin a company. The primary mission is to inform people about the business. The name of the company should be connected to the products or services it offers.
What are the most important guidelines for changing your business name?
The following are some of the most significant considerations to make while renaming your business:
- The name cannot be identical or confusingly similar to an existing corporation, limited liability partnership, or trademark. Plural version, word joining or separation, space, different tense, different spelling, the addition of location, inclusion of titles, and other small variations would not make the firm name distinctive.
- The name cannot infringe upon a registered trademark or an application for trademark registration.
- There cannot be any phrases or connotations that indicate a distinct sort of business constitution or legal entity. Co-operative, trust, partnership, proprietor, society, HUF, firm, Inc. are examples of terms that cannot be used in a company name.
- There should be no link or relationship with the patronage of a national hero or any other high-profile figure. The proposed name must not indicate any kind of affiliation with the Indian or foreign governments.
- Insurance, bank, stock exchange, venture capital, asset management, mutual fund, and other financial activities cannot exist without the approval of regulatory bodies like RBI, SEBI, IRDAI, and others.
- National, Indian, Hindustan, Government, Central, Union, or Ministry cannot be included in a name without prior government approval.
Use our free tool to check if your company name is available
What is the procedure to change company name?
1. Getting a Board Resolution passed
- The firm should arrange a board meeting to vote on a proposal to alter the company’s name. The board should approve the resolution of directors during the meeting. The board should also authorise a director/company secretary (CS) to monitor the availability of the MCA database.
- Then, to pass a special resolution, an Extraordinary General Meeting (EGM) must be held.
2. Checking the Availability of the Name
- In this stage, the authorized director or the CS will submit a Form INC-1 to the Ministry of Corporate Affairs (MCA) to examine the availability of the name and then approve it. The MCA will review the Form to see whether it fulfills the required requirements and if the name is similar to that of any other firm.
- The RoC will write to the firm if the requested name is available. Please keep in mind that this is only a confirmation of the suggested name’s availability. This is not, in any way, a letter of final permission to change company name.
3. Passing a Special Board Resolution
- The approved director should schedule an Extraordinary General Meeting (EGM) after the proposed name is confirmed to be accessible. After careful consideration, the meeting will adopt a special resolution to change company name and incorporate the change into the company’s AoA and MoA.
4. Applying with the RoC
- The special resolution must be submitted with the RoC within 30 days after its passage. The resolution should be accompanied by another modification of the business form, MGT-14. The special resolution must be detailed on Form MGT-14. As a result, it should be accompanied by the following documents:
- Notice of EGM
- The explanatory statement of the EGM
- Certified copy of the special resolution
- Altered MoA
- Altered AoA
- Following the MGT-14, the business should file the INC-24, requesting central government authority to change company name. Along with the SRN from Form INC-1, the SRN received when completing Form MGT-14 must be stated in Form INC-24.
- The business must submit a copy of the minutes of the EGM that approved the special resolution with INC-24. The INC-24 must also include the following information:
- Reason for the name change
- Number of members who attended the EGM
- Number of members who voted for and against the resolution
- Percentage of shareholding
- The RoC must be paid the specified fee for the alteration.
5. Issue of the Certificate
- When the RoC approves the paperwork, it will give the business a new certificate of incorporation with the new name. This would bring the procedure to an end.
Related read: How To Register A Company In India: A Step By Step Guide
What are the responsibilities after the issuance Certificate of Incorporation?
Business responsibilities following the issuance of the Certificate of Incorporation are as follows:
- The firm should take the required procedures to incorporate the revised company name in all copies of the AoA and the MoA once it obtains the new certificate of incorporation. The firm should also make plans to print new copies of the revised AoA and MoA.
- The new company name must be displayed in visible characters outside any location or office where the business is conducted.
- It should also be written in one of the commonly spoken languages in the area. As a result, all business seals should have it etched in legible letters.
- The new name must be printed on all billheads, notices, letters, and other corporate publications. It should also be clearly displayed on all promissory notes, bills of exchange, hundies, and other similar corporate papers.
- The firm should apply for a new PAN and TAN right away. It should also inform the banks (where the company’s current account is active) and the relevant government agencies.
Changing your business name is sometimes the greatest option to go forward. It’s not a piece of cake to do on your own, that’s for sure! The process to change company name entails a lot of changes and you can have your company name changed through ICI.
How can we help you?
To change company name there is still a lot of work to be done and it is time-consuming. With ICI, you will get your company name changed in a hassle-free manner. Furthermore, our professionals will create resolutions, revise your AoA and MoA, fill out and file all documents, and guide you through the entire procedure.