Change in the Name Clause of a corporation certainly is a very crucial step in providing a unique identity to the firm on a comprehensive scale. The Companies Act, 2013 regulates the structural framework of the Change in Name Clause in a sophisticated manner. It lays down variegated standards in the context of underlining the processes for changing the name of the corporation systematically. It helps in systemizing a unique brand and transforming the vitality of the firm on a broad scale. Therefore, every proprietor of the industrial unit or corporation must be aware of the basic principles which govern the outlook concerning the Change in Name Clause smoothly and efficiently. This blog intrinsically aims at providing a comprehensive approach to analyzing the fundamental principles in the context of the Change in Name Clause in a detailed format. 

Change in Name Clause 

The company’s name serves as its trademark throughout its existence, thus it should be carefully considered and created in a way that can support the company’s continued growth. The naming of the company is governed by the Companies Act from the first choice to any revisions made later. 

Norms Concerning the Change in Name Clause 

The Companies Act’s guidelines for naming The Private Limited, OPC, or Public Limited designation of a company are subject to the requirements outlined in the Company Companies Act of 2013. 

When choosing a name for the company, the following criteria must be taken into consideration: 

• MCA makes sure the proposed name doesn’t sound similar to one that is currently registered as a business name or trademark. It is not enough to just combine the individual words or use the existing name’s plural form to make it unique. 
• Too-general names, such as Cotton Company Private Limited, are prohibited by MCA^[1]. 
• If the suggested name violates any of the following, it shall be considered undesirable: 
• Trademark violation 
• Contains derogatory or false terminology 
• The Company shall have a name that is consistent with its purposes. 
• If the Company is organized to carry on the business of offering financial services, such as leasing, lending, and chit funds, it must state this in its name. 
• Words like Limited Liability Partnership, Trust, HUF, and other legal designations are prohibited from being used in the name. 
• Person Companies must conclude with OPC Private Limited, Private Companies with Private Limited, and Public Companies with the word Limited as their final words. 

Process

The process in detail that the business willing to change its name must adhere to is as follows: 

Plan a board conference: 

• The Company’s directors are required to discuss the suggested name. The directors receive a seven-day notice of the upcoming board meeting to be held to approve the name change. In a board meeting, the following decisions are made: 
• To grant permission to the director or company secretary to submit a ROC to verify the suitability of the chosen name 
• The Company shall keep in mind that no two businesses may be registered with the same name when determining the date, time, and location of the EGM to be held to approve the new name after it has been approved and for the modification of the MOA. 

Verify the name’s availability: 

The business will use MCA to verify the name’s availability. The drop-down menus for “Public Search of Trademark” and “Check Company Name” allow users to determine whether the same name is registered as a trademark or a company. 

Apply for Name Approval Online: 

• The new web service RUN can be used to apply the name when it has been verified as being available. By submitting this form and paying the required price of INR 1000, up to two names may be requested. 
• The board resolution authorizing the name change must be included in this form if the Company is changing its name. ROC carefully examines the application before approving the name or requesting a resubmission. For 20 days following ROC’s clearance, the name is still legal. 

Conducting ad hoc general meetings 

The Company must call and assemble the EGM to pass the required Special Resolution for approval of the name change and make adjustments to the MOA and AOA after the name has been approved by ROC and the name approval letter has been received by the Company. 

Registering with ROC 

The special resolution must be submitted to ROC in form MGT-14, which may be downloaded as a zip file from the MCA website, within 30 days of the EGM. The form also needs to have the following papers attached to it: 

Special Resolution CTC passed 

• An explanation of the notice of the EGM 
• Changed MOA 
• Changed AOA 

Central Government endorsement: 

For name changes and modifications to MOA, the company must submit form INC- 24 to the Central Government for approval. This form must be submitted with a copy of the EGM minutes in which the Special Resolution was approved. 

An updated certificate of incorporation: 

After the name-change procedure is finished, the ROC must issue a new COI with the changed name listed on it. Since a new COI was issued, the new name is now in force. 

Conclusion 

The text imparts an unambiguous picture concerning the Change in Name Clause in a well-organized format. The Change in Name Clause emphasizes providing a special identity to the corporation on a wide platform. It tends to adjoin the structural framework of a unique brand of the corporation with the ideal pattern of law. Change in Name Clause determines reinforced support to systemize a basic transformation to provide a new rejuvenating lively spirit to the corporation to a large extent. Our legal luminaries at BizAdvisors.io tend to provide a robust support system in the context of assisting individuals to easily avail services in consonance with the Change in Name Clause as per the statutory provisions of the Companies Act, 2013. You can freely contact our legal consultants at BizAdvisors.io for any kind of professional advice or support in the context of the Change in Name Clause. 

Read our article:All You Need to Know About Post Incorporation Compliances for Private Limited Company