CHANGE OF NAME
The name of a Company or LLP can be changed by the promoters at any time after the incorporation. The existing Companies are inclined to change its name due to change in ownership, main business object, business restructuring, mergers and amalgamations or conversion of company from one type into another and Shareholders’ may require change of name. However, it has no impact on legal status of the existing entity. Hence, all assets and liabilities including claims, receivables and payables of the company would continue as it is.
Change of company name requires passing of a board resolution, obtaining the Name Approval from the Central Registration Centre (CRC), passing of members’ special resolution and applying for approval of new name for the Company. If the MCA approves the application, a Fresh Certificate of Incorporation will be issued. After obtaining the fresh Certificate of Incorporation, necessary changes must be made in the MOA, AOA and other documents and stationeries of the company currently in use.
LEGALRAJ will be delighted to assist you in change of name of the Company or the LLP. The average time taken to complete a company name change is about 2 to 7 working days, subject to government processing time and client document submission.
Reasons to Company Name Change
1. Separate Legal Entity: Private Limited Company is a legal entity and a juristic person established under the Companies Act. Hence, a company has a range of legal capacities and themembers (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.
2. Uninterrupted Existence: Private Limited Company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
3. Borrowing Capacity: Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.
4. Easy Transferability: Ownership of a business can be easily transferred in a company by transferring shares. The signing, filing and transfer of share transfer form and share certificates are sufficient to transfer ownership of a company. In a private limited company, the consent of other shareholders may be required to effect share transfers.
5. Owning Property: Private Limited Company being an artificial person, can acquire, own, enjoy and alienate property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.
How we help with company name change
1. Our Compliance Expert will review proposed names of your choice with respect to their availability and check the Articles of Association to understand the clauses related to name change of the company. The review would take 1 - 3 working days.
2. Timelines: After that, we will draft necessary documents and the timeline of meetings will be followed.
3. Filing: Once necessary Resolutions are passed, we will prepare and file the necessary documents with the Ministry of Corporate Affairs and other required authorities.