Changing Company Name & Objectives - Overview
As your company grows and evolves, it is normal that you want to take your company in a direction that you didn’t anticipate before. When you change the objectives of business, it is necessary to make it official by amending the memorandum of association (MoA) and fulfilling other formalities for the same.
TheLegalLab’s service can make this whole process easy for you and pave the way for a comfortable transition into a new phase for your business.
Why Change Business Objectives?
The company objective stated in the MoA restrict the scope within which a business can act. So, changing objectives is necessary for the following situations:
Undertaking New Ventures: When your company is expanding vertically or horizontally into new areas resulting in new products or services or activities, the objectives of a firm need to be changed to accommodate it.
Company Takeover: When another company takes over a company, major changes take place. The original company's branding may remain the same, but more often than not, the direction and vision of the company are changed.
Eliminate Abandoned Activities: It might so happen that, over time, some of the company's activities may prove unnecessary or pointless. In this case, these activities will be slowly abandoned, and the company will have to edit the company objective to reflect the same.
Banned or Prohibited Activities: Government policies keep changing. Sometimes an activity that was legal when the business started may be declared illegal, or the government may restrict permissions. In such cases, your company should avoid that activity and amend the objectives to avoid legal consequences.
Process for Changing the Company Objectives
The MoA explains the two major company objectives:
- Main object: Covers the major business activities of the company
- Ancillary object: Covers the necessary activities for conducting the business plans and needs.
To get these company objectives changed, you will need to follow the five steps:
Step 1: Board Resolution
A meeting of the board should be held, and a resolution has to be passed to make the essential changes in the name and objectives of business. A director/company secretary should be authorised to sign, certify, and file the required forms with the RoC.
Following that, a place and time will be fixed for conducting an extraordinary general meeting (EGM) of members.
Step 2: Special Resolution in EGM
In the EGM, members will pass a special resolution. The reply of the members to the special resolution is obtained. All the members should be given notice with certain mandatory information. Once this notice is circulated, the resolution is passed.
Step 3: File form MGT-14 with RoC
The form MGT-14 needs to be filed with the RoC by the company and its director(s) to process further. Some other documents need to be attached with the form for the same (listed below).
Step 4: Issuance of Fresh Certificate of Incorporation
In case the CIN number changes due to a change in the industry code, the RoC will issue a new certificate of incorporation to the company.
Step 5: Incorporation of the MoA Object Clauses
After the RoC issues the incorporation certificate, the company must take steps to incorporate the object clause in all the MoA copies.
Documents Required to Set up Main Objectives of Business
- Notice regarding EGM
- Attested true copy of the special resolution
- Minutes of the board meeting and EGM
- Altered MoA
- A certified true copy of the board resolution (optional)
- ID proof of all the directors of the company
- Address proof of all the directors of the company
- Attendance sheet or register of board meetings and general meetings
Why TheLegalLabs?
Here is why you should choose TheLegalLabs for changing the objects of your company:
- Simple and speedy process
- Experts will guide you in deciding what to add under main and ancillary objectives of company.
- A resolution drafted and forms filled & filed for you
- We will make the amendments to your MoA
- You get the best support
- All your queries will be answered.
The Glossary
AoA
Articles of Association
MoA
Memorandum of Association
EGM
Extraordinary General Meeting
ROC
Registrar of Companies
MCA
Ministry of Corporate Affairs
FAQ's on Change Your Business Objectives
- What is the memorandum of association?
A memorandum of association (MoA) is a legal document that defines a company’s relationship with shareholders and specifies the objectives for which the company has been formed. It is like the company's charter and is prepared when the company is created.
- What are articles of association of a company?
Articles of association (AoA) is a legal document that talks about the company's internal management and aims at carrying out the objectives as mentioned in the memorandum.
- When will the changes made to the object come into effect?
The changes made to the objectives of a firm will be effective only after the company registrar accepts and acknowledges the application. After the acknowledgement is received, the company has the right to carry on the updated activities.
- Do we have to change the company's name because we are altering the objectives of the company?
No, both of these are not interdependent. You do not have to change the company's name in every case. However, suppose the present name in no way reflects the new activities undertaken by the company. In that case, the RoC may request the business to change the name of the company so that it has some relation to the new activities performed by the business.
- Can a company have two main objectives of business?
Yes, a company can have more than one main objective of business. However, they should be relevant to the main business of the company.
- Is the process completely online?
Yes, the process is 100% online. We will provide you with a dashboard in which you can comfortably do everything.
- What is a business objective?
Business objectives are the clear, quantifiable outcomes that organisations seek to retain as they expand. Analysing, evaluating, and comprehending where you are now and where you want to be in the future are required.
