Changing the Name of the Company - an Overview:
Sometimes, the name of your company just doesn’t feel right or is not working well for your business; or maybe you need to change your company’s name in order to distance yourself from some negative association. In such a situation, you can change the name of your company to something more suited to your future plans. While picking an alternative name might sound like an easy task, the legal process to change the name of your company is tiresome. That is why we at Vakilsearch have created this service to make that change easy for you. We have simplified the process to the maximum extent possible and take care of most of the tasks for you.
Why Change Your Company’s Name?
People decide to change their company’s name for any of the following benefits:
Capitalising on the Popularity of a Product/Service: If a business gains popularity for one particular product or service, it can rename its company around that product/service to capitalise on that popularity.
Memorable Business Name: If the existing name isn’t catchy enough, one can change the company’s name to something more memorable that will strike the right chord with their potential customers.
Repositioning: A company’s name can also be changed when the business is ready to move into a new market. This helps in repositioning the brand/company.
Location-friendly Name: Sometimes, based on the new geography you are entering, it might prove necessary/useful to change to a name that is more friendly and acceptable there.
Avoiding Copyright Issues: If a company’s name is subjected to copyright issues then it can change its name to avoid problems.
Change of Ownership: A new name would help a new owner to ‘stamp their authority’ on the company and give it a whole new direction.
What Name Changing Doesn’t Affect
The change of name will not affect any rights/obligations of the company and any legal proceedings continued against/by the company in its old name
However, the commencing of any fresh legal proceedings against the company in the former name is not valid after the new name has been registered by the RoC. The company in its old name should be treated as non-existent. However, the new name can be substituted by amending the plaint
The legal proceedings commenced by the company in its old name can be continued under the new name. The entity of the company continues despite the name change.
Process to Change the Name of a Company
To get the name of a company changed, you will need to follow the 5 steps:
<b>Step 1: Passing a Board Resolution</b>
A board meeting is to be conducted where a resolution should be passed to change the name of the company. The directors should approve the new name and authorise either a director or a company secretary (CS) to check the availability of the new name with the MCA.
<b>Step 2: Checking the Name Availability</b>
The authorised person should apply to the MCA in form INC-1 for checking the availability of the proposed name. You can also run a search through this link. It is important to run a trademark search for the proposed name.
It is advised that you should shortlist four to five business names before checking the availability to cover for the event of these names being taken or in use already.
<b>Step 3: Passing Special Resolution</b>
Once the availability of the new name is confirmed, the company should convene an extraordinary general meeting (EGM). A special resolution will be passed for changing the name and making appropriate changes to the AoA and the MoA.
<b>Step 4: Applying to the Registrar</b>
The special resolution will be submitted to the RoC within 30 days of passing, along with the form MGT-14, which will contain the details related to the special resolution.
Within 30 days of filing the MGT-14, form INC-24 needs to be filed with RoC along with the requisite fee. This is required for obtaining approval from the central government for changing the name. Certain documents also need to be enclosed with these two forms.
<b>Step 5: Issuance of the Certificate of Incorporation</b>
Upon being completely satisfied with the application and the accompanying documents, the RoC will issue a new certificate of incorporation, reflecting the name change.
This is the simplified version of the whole process. Vakilsearch will take all the drafting, filling out of forms, and filing out of your way to make this process easy for you.