If you're considering changing the name of your business but are unsure how to go about it, here's a Checklist for Changing the Company/business name.
Changing Your Company Name May Be Necessary for a Number of Circumstances, Such As
- Name suffering from brand confusion.
- when you have changed industry or product.
- when It’s an inherited name & you are not willing to continue with it.
- When the name of the company/ business is too short or too long.
- When the name is misleading or is, it creates confusion among customers.
- other reasons such as Disliking the name etc
You can change the company/business name in the following ways
- Conversion of the company from public to private.
- Conversion of the company from private to public.
- Change the company name from ABC Limited to XYZ Limited.
In this blog, we will provide you with a checklist for changing the company/business name.
Company Act of 2013
Section 4 of The Companies Act of 2013 states clearly that while choosing the name of the company, make sure that the new name is used.
- It shall not be identical or resemble the name of an already registered company.
- It won’t violate any laws and won’t be illegal
- Is not undesirable in the opinion of the central govt.
- Contains no words or phrases implying a connection between the company and the central, state, or local governments.
- Any other terms or expressions that may be required.
Also, no business can change its name, which has failed
- To file an annual return & financial statements with the registrar of companies.
- To pay or redeem its maturing deposits or debentures or interest thereon.
Checklist of Documents needed for a Company Name change
The checklist for Changing the Company/business name includes,
- Certificate of incorporation of the business.
- Memorandum of association & article of association of the company.
- Proposed name (s) for the company/business in order of preference
- Digital signatures of the company’s directors.
- Shareholders and directors list.
- Letterheads of the company/business.
How to Change a Company’s Name under the Companies Act 2013
- Give at least 7 days’ notice before holding a board meeting to discuss the proposed company name change.
- Pass the required board resolution at the meeting so that the proposed name can be considered and accepted.
- File RUN (reserve unique name) application submitted via the MCA website with a board resolution and, if required, a NOC from the trademark owner as an attachment.
- Once the proposed name has been approved, hold a special general meeting to approve the change of the memorandum of association.
- Within 30 days of passing the special resolution, submit the form MGT-14 (for filling out a special resolution on altering the memorandum of association) along with these documents.
- A certified true copy of the special resolution.
- A Notice of EGM along with an explanatory statement.
- Altered memorandum of association & article of association.
The registrar will issue a new certificate of incorporation with the new name of the company following the successful acceptance of INC-24.
Compliances After Company Name Change
A certificate of incorporation bearing the new name will be issued to the business once the name change process has been completed, following compliances should be followed:
- The new name of the company should reflect on every copy of the memorandum of association.
- All invoices, letterheads, paperwork, and records for the company should have both the new name and the old name.
- For a year following the date of the name change, the new name and the previous name must be displayed outside the company’s registered office.
- The new name of the company should be updated on all bank accounts and licenses the company has secured from different agencies.
- Arranging a new Permanent account number & a tax deduction and collection account number (TAN).
- Update the new name to include all of the providers of fundamental utility services, such as energy, phone bills, internet connections, etc.
- Should Inform all the concerned authorities as well as stakeholders of the company/ business.
Change Name of a Company/Business Shall Not Affect
- Any rights & obligations of the company.
- Any Legal proceedings which are pending against the company.
- The Liability to pay income tax arrears.
You can consult with the legal professionals at Vakilsearch to complete your Company Name changing process within just a few clicks. They will assist you at every step and will help you find out if the proposed name is still available.
Circumstances When One Can Use the Same Name as Another Company?
Same rules may be waived if:
- The proposed company will be a member of the same group as the current business that bears the “same as” name.
- The already-existing business gives consent for the “same as” name to be registered.
- The application to register the name includes a written confirmation from the existing company that it agrees to the registration of the proposed “same as” name and that the company will be a part of the same group.
How Can Vakilsearch Help You?
It is better to have the name change of your company handled by a professionally managed firm because changing a company’s name is a legal process under the 2013 Companies Act.
At Vakilsearch, we have a team of experienced legal professionals who can help you with the entire name change process, including changing the main objects.
Frequently Asked Questions
No, but the business must change its PAN and TAN to reflect the new name.
A business can submit up to two suggested names, in that order. If the names that were submitted are already in use, the applicant will have the opportunity to reapply with a different pair of names.
Yes, the business must notify all of its clients, partners, or other interested parties since their records also need to be updated.
On occasion, Companies House makes a mistake and permits the registration of a company with the same name or a name that is close to it. In certain situations, the Companies House has the authority to order the firm that broke the rules to alter its name.
The new name will take effect on the day the registrar issues the company with a new certificate of incorporation. Does the business need to obtain a new PAN card after changing its name?
How many names can a company submit in the RUN form?
Should the business inform its clients, suppliers, etc. of its new name?
What if a business already has a name that is taken by another business?
When will the company's new name officially take effect?
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