Company Name Change - Overview
Vakilsearch understands that a company's name is at the core of its identity. Our Company Name Change service can assist in making sure a transition runs smoothly; whether rebranding, merging or simply looking to start over, Vakilsearch's experts offer expert assistance to ensure smooth change.
Understanding the Legal Process Behind Company Name Change
Here are a few things to keep in mind to change your company name and the legal aspect behind it
- Board Resolution: The board of directors must pass a resolution for approving the name and authorising the needful actions
- Check Name Availability: Verify whether your proposed new name is free and not already being registered by another entity.
- Hold an Extraordinary General Meeting (EGM): To present and secure shareholder approval of the proposed name change proposal.
- File for Approval: Pay the documents and fees for name change with the Authority
- Issuing New Incorporation of Certificate: After approval a new certificate will reflect the name change.
Procedure for Change Your Company Name
To change a company's name, the following e-forms must be filed:
- RUN: The existing company must first reserve the desired name using the RUN service.
- Once their name has been approved, companies must file Form MGT-14 to pass a special resolution amending their Memorandum and Articles of Association (MOA/AOA).
- INC-24: When applying for name change approval by the Central Government, an eForm INC-24 must be filed. This formalises the name change and brings it into effect.
Documents and Forms Required for Company Name Change
The required documents for a company name change include:
- Board resolution approving the name change
- Application form for name change approval
- Updated company documents
- Memorandum of Association & Articles of Association
Common Reasons for Change of Company Name
Companies may opt to change their names for various reasons, including:
- As part of a merger or acquisition, when two businesses merge or acquire one another, their identities shift significantly and must reflect this in their naming conventions. If businesses opt to rebrand themselves they might change the name to better align with new strategies or better represent current offerings.
- An organization may consider changing its name when expanding into new markets to better engage local audiences or avoid culturally sensitive situations. Legal or regulatory requirements may also necessitate this step - for instance when its structure or ownership changes.
- Name changes may be necessary in order to avoid legal proceedings if your name infringes upon another entity's trademark.
Timeline for Change of Company Name
The timeline for changing a company name, also known as rebranding, can vary depending on the complexity of the process, the efficiency of the government agency involved, and the company's own preparedness. However, a general timeline for a straightforward name change process might look like this:
Phase 1: Preparation and Planning
- Board Resolution: Pass a board resolution approving the name change and authorising the necessary actions.
- Name Availability Check: Verify that the proposed new name is available and not already registered by another entity.
- Drafting of E-forms and Documentation: Prepare the necessary e-forms, resolutions, and supporting documents.
Phase 2: Legal and Regulatory Procedures
- Extraordinary General Meeting (EGM): Convene an EGM to present the name change proposal to the shareholders and obtain their approval.
- Application for Approval: Submit an application to the relevant government authority, along with required documents and fees, for approval of the name change.
- Review and Processing: The government agency will review the application and may request additional information or clarifications.
Phase 3: Implementation and Communication
- Issuance of New Certificate of Incorporation: Upon approval, the company will receive a new incorporation certificate for the name change.
- Updating Company Documents and Records: Update all company documents, contracts, and registrations to reflect the new name.
- Internal Communication: Inform employees about the name change and provide any necessary training or guidance.
- External Communication: Announce the name change to the public through press releases, website updates, and social media campaigns.
Compliances After Change of Company Name
After completing the company name change process, it is crucial to adhere to specific compliance requirements:
Legal Documentation Updates
- Make sure the new company name appears in all copies of the Memorandum of Association and on all invoices, letterheads, paperwork and records.
Name Display
- For one year from the name change date, prominently display both the new and previous company names outside the registered office.
Bank Accounts and Licenses
- Update the new company name on all bank accounts and licenses obtained from various agencies.
Notifications
- Inform all relevant government authorities, stakeholders, and utility service providers (phone bills, internet connections) about the company name change.
Tax and PAN
- Change the company name in PAN and TAN
Follow-up Activities After Company Name Change
Legal Documentation
- Amend the company's articles of incorporation or similar foundational documents to reflect the new name officially.
- Update and file legal documents with the appropriate government authorities, such as the business registration office.
Contracts and Agreements
- Review and update all existing contracts, agreements, and legal documents to accurately reflect the new company name.
- Notify all parties involved in contracts about the name change and, if necessary, obtain their consent for the amendment.
Intellectual Property
- Assess and revise registrations for intellectual property, such as trademarks and patents, to incorporate the new company name
- Make sure about the seamless transfer of all IP rights linked with the previous name to the new name.
Tax Compliance
- Inform tax authorities about the company name change and update your tax identification information.
- Update tax registration certificates and other relevant documents to reflect the new name.
Regulatory Notifications
- Notify relevant regulatory bodies and industry-specific authorities about the name change, especially if your industry has specific compliance requirements.
Employee Records
- Update employee records, including payroll records, contracts, and benefits documentation, to reflect the new company name.
- Ensure that employee-related compliance filings are updated, such as with labour boards or government agencies.
Banking and Financial Compliance
- Notify banks and financial institutions about the name change and update account information.
- Ensure compliance with any financial regulations that the name change may impact.
Public Disclosures
- Comply with any disclosure requirements for publicly traded companies. This may include filing the necessary documents with securities regulatory authorities and updating the stock exchanges.
Insurance Policies
- Review and update insurance policies to reflect the new company name. This includes liability, property, and other types of insurance coverage.
Data Protection and Privacy
- Review and update privacy policies and data protection documents to reflect the new company name.
- Ensure that customer consent for data processing is still valid under the new company name.
Environmental Compliance
- If applicable, ensure that any environmental permits or compliance requirements are updated to reflect the new company name.
Why Vakilsearch for Business Name Change?
Here is why you should choose Vakilsearch for changing your company name:
- Simple and speedy process
- Our team will check the availability of your proposed name
- A resolution drafted and forms filled & filed for you
- We will make the amendments to your MoA and AoA
- 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
CS
Company Secretary
ROC
Registrar of Companies
MCA
Ministry of Corporate Affairs
FAQ's on Company Name Change Online
.png){kind=small}
