Many things are altered through the constantly changing ages of technology and everyday schedules.
And one of those many such things is changing the name of your business. The name of a company suggests working in the function of the company.
You work a lot on the name of the companies so that it reflects what the company is and its sole purpose.
So, you will put a lot of work into the image of the company in which its name plays a major role.
And sometimes, you will have to change some things through the changing errors and new innovations.
This will include changing your image in the developing days. And your company's name is the prominent image; you should change it.
So how do you do it? What is the procedure for changing the name of your company? Let us go through everything that is related to this topic in this article.
Reasons for changing the name of your company:
You can only easily decide to change your company's name after certain reasons lead to this.
Some of the reasons that support changing the name of the company are as follows;
- Your company name has been outdated
- The name might be confusing and difficult to spell
- It might not be special or differentiating from others
- The name could be difficult to promote with marketing strategies and PR
- When you want to regrow your company or expanded you want a name that relates everywhere
- The name might suggest a person's name rather than the function
- When the name is an acronym
And several of the reasons considering your perspective
Procedure to change the company name:
- Proposing the change of the title in a board meeting:
A board meeting is held to propose the idea of changing the company's name to the board members in the board directors.
Reasons for the changing of the name are listed and analyzed. Three new names are proposed, requiring board approval to change the name.
This includes the board director filing an application to the Registrar of Companies (ROC) for the change in name.
- Checking the MCA portal to see if the name is available:
After the company's name is fixed, the availability of the particular name on the MCA portal is checked. You must check the RUN (Reserve Unique Name) for availability.
- Applying for the approval of the company's new name that is available:
Under the provisions of the companies act 2013, a UN application is being filed to change the name of the company.
You will apply the RUN form to the Registrar of Companies (ROC). After checking with the application, the registrar of the company will send a letter about the availability of the proposed name.
After the ROC confirms the name, it should not be similar to the existing company name.
- Application to the Registrar:
After this particular resolution is passed within 30 days, another special resolution is filed. The special resolution is the following documents;
- Certified copy of the special resolution applied
This copy is attended by submitting the following documents
- EGM (expo general manifest) notice and explanatory system to EGM
- Modified MOA (memorandum of association)
- Modified (article of association)
- Issue of the certificate of incorporation
The ROC will review the documents to see if they are relevant and satisfying, and then the new certificate of incorporation will be issued.
- Company name of incorporation in MOA and AOA
After the certificate of incorporation is issued from the ROC, the company will be incorporated with all the copies of the MOA and AOA.
Choosing the right name for your company:
After getting the issue of the incorporation of the company, you can change the company names in the ways that are given below
- Changing the company's name from a private company to a public company
- Changing the company name based on the limited tag [ABC limited to XYZ limited]
The company's memorandum of association has the alterations containing the change in the name of the company.
Section 13 of the companies act of 2013; MOA provision applies to all companies.
It will deal with changing the company's name, which provides a special drill solution in the name of the company that the Central government's approval can also change.
In any process, the company's name is the most important feature. So, it would be best to remember that it will be the first thing that gets registered in the client's memory.
Always check with the MOA availability for the change of name. These two things are really important in the process of changing a company's name.
Rectifying the name of the company:
After you choose the company's name through proper procedures, you will have to rectify the company's name.
- Under section 16 of the companies act, you will have first to register, and the registration has to be a new name which will be registered as per the central government's rules. Abiding by the rules of the central government, the name has to resemble the previously registered name of the company in existence. With this process, the name can be changed in the period 3 months after the direction is issued.
- In other ways, the company name is changed under sub-section 1 within 15 days of the change, and the registrar issues a notice in order with the central government. This will lead to the necessary changes to the certificate of incorporation.
- If you fail to apply the direction under sub-section 1, a fine of Rs 1000 is employed on the company, and the same will continue to the directions that do not comply. Everyone who will be in charge is a punishable fine of not less than five thousand rupees to the extent of one lakh rupees.
Provisions applied in changing the name:
The following are the different provisions that apply to changing the name of your company
- Section 13 (2) - section 13 of the companies act 2013 deals with the changing of names that can be altered by passing a special resolution and with the central government approval.
- Section 4 (2): section 4 of the company act 2013 states that no company with the following reasoning cannot be registered. If your company name is identical or is completely relevant to any other existing company
- If your company name is controversial and causes any offence under any law.
- If the company name is undesirable and rejected by the central government opinion
- Section 4 (3): States that any company name will only be registered if the name contains approval from the central government.
Prohibitions under the changing of the name:
- Rule 29 (1): if you fail to submit the financial statement, the annual records or any document that is due for feeling to the Registrar. If any default is found in the repayment of the deposit's steps and the interest in taxes revenue
- Rule 29 (2): an application will be fired in the form of INC-24, along with the fee to change the name, and a new certificate of incorporation will be issued upon changing the name
Approvals required for the changing of the name:
To change the name of any company, certain approvals are required for better judgment and decision-making.
Some of the essential and compulsory endorsements are listed below:
- The resolution passed from the board of directors on deciding the change in companies name with a majority
- The RUN application, which is the reserve unique name service that is made to the Central Government registration centre, ministry of corporate affairs
The mentioned steps below have to be followed when you are applying for the RUN application;
- The names that are selected have to be different and should not be relevant to any other companies or registered trademarks.
- You can apply for two names as per your choice under the RUN website. You will be able to know if the names are not available, and then you can resubmit and apply freshly for another two different names.
- After the ROC approves the name, it is reserved for up to 60 days after you pay, as the central government
prescribes it.
- Based on a memorandum of association, a whole check is done through video conferencing to select the unique name. The company's approval can also be achieved on a specific notion of voting.
- You can also file the MGT-14 form and the INC-24 form within a time period of 30 days from the date of the EGM. The attachments for these applications are as follows;
Attachments required for MGT-14:
- Certified copy of the special resolution with an explanatory statement
- Copies of the notice of meeting that is sent to the members with the annexure
- Altered memorandum and article of association
- Attendance sheet copy of the general meeting
- Short notice consent, if any
Attachments required for INC-24:
- Notice of the explanatory statement
- True copy of the special resolution
- Article of association and altered memorandum
- General meeting minutes
- Affidavit from the directors
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Conclusion:
Change is vital and necessary for a developing era. With the changing times and the new notions of communication technology and ideas, you will have to reason with the change that is happening.
In order to stay in the everyday transformations, you will have to adapt to them.
The name of your brand is prominently the most important thing about it. It is the soul and recognition of your brand's functioning and services.
So, in order to do this and keep up with the value of your company's name, you will have to change your business name.
By following the right procedure and submitting the transparency of documents along with a unitized opinion, you can change your company's name easily.
It's not every day you keep changing your company's name, so when you do so, be very thorough about it.
FAQ’s Related to PROCEDURE FOR NAME OF CHANGE OF A COMPANY
1. Is it a wise idea to change the company’s name?
Changing the company's name is independent of a sole person's opinion. With variable technology is a knowledge you will have a necessity to change your company's name. And when such a necessity comes through, it is a good idea to change your company's name. This will help make your company reach a prominent way and succeed. Renaming your company is bringing a new face to it and a new function and service to loyal customers. With the reasoning factors that insist on the change in the name, you will have to be able to decide based on everyone's choice of decision.
2. How do I choose a good name for the company?
As much as you want to rename your company, the procedure and finding the right name to do so is always challenging. Here are some of the things you can do to obtain a good name for your company;
- Seek out your competition
- Understand the sole purpose and the functioning of your company
- Make sure that the name is simple and understanding
- Keep it easy to spell and pronounce
- Keep it original so that the value of the company is depicted
- List out the options of the names that you prefer
- Ask your customers, do a survey and get other opinions as well
- List out the pros and cons of different names and narrow them down
3. Why should I change the company’s name?
As mentioned earlier in this article, several factors contribute to changing your company’s name.
- The name of your company is difficult to pronounce and might be outdated
- Your brand might be confusing in order with others
- The new addition of products, strategies or services to a company
- If the name is under the founder, which might not be related now
- When you want to expand your company on a geographical level
- When the name is too boring and usual
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