Change in Name of a Private Limited Company

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Change in Name of a Private Limited Company

A Private Limited Company, famously known as Pvt. Ltd., is a privately held company. This implies that the business limits owner liability to its shares and from trading its shares publicly. In addition, it needs to have a minimum of 2 members and a maximum of 200 members. Private limited companies are also incorporated; hence, they continue to exist even after the demise of their owners.

Why does a Private Limited Company require Name Change?

The name of the Company is one the most important and foremost steps taken before incorporating a Private Limited Company. Although, after the Company is incorporated, the name of the Company may need to change. The change in the name of a private limited company can take place due to various reasons such as change in management, change in the business objective, change in the brand of the company, etc. Ola was initially known as ‘OlaCabs’ when it was launched in 2010, but in 2014, the company changed its name to just ‘Ola’ to reflect its expansion beyond just cabs.

The change in the name of the Company does not affect the legal details of the Company or the rights and duties of shareholders in any sense. In case a company wants to opt for change in the name, a step-by-step procedure must be followed.

Procedure to Change the Name of the Company

Follow these steps to change the name of your company:

• A board meeting is held after providing seven days of notice to approve the agenda and recommend new names for the company
• An extraordinary general meeting is then held to get the approval of the shareholders for the proposed names
• Application for the name availability is sent to the Registrar of Companies (ROC) in form INC-1
• In case of the availability of the proposed name, a certificate is issued to the Company by ROC
• An extraordinary general meeting is held to pass the Special Resolution of changing the company’s name
• In accordance with Section 117(1) of the Companies Act 2013, the special resolution passed at the extraordinary general meeting must be filed with form MGT-14 at the Registrar within 30 days of passing the resolution. The form must include the necessary documents:
  • Copy of the resolution
  • Notice of the extraordinary general meeting
  • Statement of the notice
  • Memorandum of Association
  • Articles of Association
• An application form INC-24 must then be filed for the change in the Company name along with the required fees
• After scrutiny and validation of the forms and documents, the Registrar will issue a certificate of incorporation

The timeline for the process of the company’s name change in India ranges from several weeks to months and the same depends on various factors such as the proposed name’s availability, board and shareholder meetings’ scheduling, and processing time taken by the ROC. Companies should expect a timeline of approx. 10-15 working days for finishing the procedural formalities which involve the initial decision to change the name to obtaining the updated certificate of incorporation which reflects the new name of the company.

However, actual duration is based on the efficiency of documents, preparation, submission and processing. There can be a potential delay in the company’s name change due to regulatory reviews or legal considerations.

Documents Required For Company’s Name Change

To apply for a name change for a private limited company, there are two sets of all the necessary documents. The first set of documents are easily available with the company such as MOA, AOA, Shareholder/Board resolutions, etc. In the second set of documents, there are drafts which are prepared for the name change of the company. Once all the necessary documents are collected, they need to be signed and attached to the relevant forms provided by ROC, such as INC-24, RUN Form and MGT-14. All these forms are required during the company’s name change application process. Before you submit all the documents, it must be ensured that they are accurate to avoid rejection or delays.

A Private Limited Company can successfully change its name by submitting all the necessary documents and following the name change process properly. Thereafter, it can update all its legal and business documents accordingly.

Conclusion

It is not an easy task to change the name of your company, especially if many people have come to recognize your company’s present name. But it becomes necessary to opt for name change in certain circumstances. With the right help, changing the name of your company can be less complicated. Over time, the government also acknowledges the name of your company and thus, you only need to make an online application to the registrar of companies and in some cases with the competent authority as well. Due to the advancement of technology, form filling has become easier. You can refer to help desk support on the official portal of MCA for accessing free content which can guide on how to change the name of your company. If you need further assistance, you can get in touch with Registrationwala to aid you in changing the name of your company without any hassle.

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