How can you change the name of a Private Limited Company?
Some times many Private Limited Companies need to get their name changed for several reasons. Some of these reasons may include the change of the motive or target of a business, changing the corporate image of a business or changing of the managerial authorities of a business. Changing the name of a private limited company is a straight forward procedure for a new company however for an existing company with a running business this can be a little daunting task.
Changing the name of a Private Limited Company
There is a legal procedure which must be followed in order to change the name of a private limited company. The name which is chosen at the time of incorporation of a company can be easily changed later, although, the legal approval of the investors and the endorsement of the MCA are required. Once that is done, the name of a company can be changed to any other name. This, however, does not affect the legitimacy of the company and neither does it affect its actuality as a corporate establishment. Changing the name of a company does not affect the motives of the company and won’t make it a new company altogether. The company would function as usual. This also means that by a different name:
- The company’s rights and commitments would not be influenced.
- It wouldn’t influence the legal and lawful procedures being carried out by the company or against the company.
- The procedures which are already being carried out will proceed in the old name of the company.
Steps to change the name of a Private Limited Company:
- Board Meeting: A board meeting is conducted which includes all the shareholders. A proposal to change the name of the company is passed and needs to be approved by the Director or Secretary of the company after which an application is filed with the Registrar of Companies (ROC) in form No INC 1 (For Name Availability of Proposed name for Company) to the Ministry of Current Affairs to know more about the availability of the chosen name. Other legal documents such as the MoA or AoA can likewise be altered or discussed during the meeting. Furthermore, an exceptional general meeting needs to be called to change the name of the private limited company should also be held.
- It is ensured that the new name chosen is available and upon confirming the same, an application (Form No INC 1) to the MCA can be written. The same method which is used to apply for the name of a new private limited company is followed. The name must also follow the naming guidelines of the Companies Act 2013.
- Once form INC 1 is approved by the MCA, another exceptional general meeting is held in order to pass a proposal to change the name of the company and to make any required changes to the MoA and AoA.
- When the special resolution to change the name of the Private Limited Company is passed, the required documents, including the approval application and special resolution, must be submitted to the Companies Registrar along with an application to change the name of the company in Form 1B. Additionally, a nominal amount would need to be paid as the fee.
- Once all the details are checked by the Registrar, and they are satisfied with the documents given to them, they would provide a new certification of incorporation with the new name which has been approved. Thereafter, the process is complete and the name has been changed only upon the successful issuance of a new certificate of incorporation by the Registrar.
- Afterward, the authorities of the company must ensure that once the new certificate of incorporation is issued, changes must be made to the Memorandum of Association, Articles of Association and Certificate of Incorporation issued by the Registrar. All the legal documents hereafter should carry the current name of the company.
- Once Name is approved and incorporated in MOA and AOA, the new name should be updated in GST Registration certificate, PT certificate, Gumasta, Letterhead, Bills and other communications of the company as well as at the office and branch location the new name should be intimated and changed in the Board or logo of the company.
As explained above whatever is the reason, you have to follow the standard procedure to change the name of your company. However, changing the name of the company will not affect or change the motive and operations of the company. Also, you can change the name of the company only if that particular name is available or not taken by any other company.
So hope this guide will clear all the doubts you have about a company name change. If you still have any query related to this then please feel free to ask, we’ll feel happy to help you.