The name of a company is its unique identity of a private limited company, and the same is the first clause of the MOA (also known as Name Clause).
In case the management of the company desires to change the name of the company, it can be done with the consent of its shareholders and with the ROC’s approval.
There is a four-stage approval requirement for effecting change in the name of the company.
Following are the requirements of obtaining prior approval in the process of the company name change
Approval of the Board of Directors
Approval of more than 75% of Shareholders
Approval of the ROC (MGT-14)
Approval of the Central Government (INC-24)
In general, all companies, whether new or old, are eligible to apply for a company name change. However, The Section 13 (2) of the Companies Act, 2013, read with Rule 29(2) of the Companies (Incorporation) Rules, 2014, does not permit name change if the company has not filed ROC Annual Return, Financial Statement or any other report/documents to ROC on time.
Common Reasons for Change of Company Name
Voluntary Change of Name: The Company may, on its own, decide to change the name of the company, subject to fulfilment of all other conditions it is very much legal and normal to change the company name voluntarily.
Change in Business Activity: To reflect the new or additional business objects, the company may decide to change its name. In the instant situation, the company also alters its MOA to change the main object.
For Rebranding/Marketing : For marketing reasons or to effectively position the company’s brand, sometimes companies also change their name to bring it as per the latest trend and fashion for better brand positioning.
Change of Ownership: It is seen that after the change of ownership or takeovers, the company name also changes to reflect upon the authority of the new management and for branding purposes.
To Avoid IPR Issues : The companies may change their name to re-enforce their trademarks or copyrights in their name. Similarly, the company name is also changed to avoid a potential IPR Conflict.
In Compliance of ROC Direction : The ROC can also make an order directing the change in the name of company subsequent to a complaint filed by any other company claiming priority of use of name or Trademark.
We, Relitrade Consultancy will guide you thorough the process.