Companies in India are entitled to make a set of changes on the basic information registered with the local institutions. One of the changes investors can make refers to the modification of the company’s registered name (investors can also modify the company’s official business address, the company’s legal entity and make specific amendments to the company’s statutory documents).
One of the main requirements when opening a company in India is to have a company name which has to comply with specific rules. For example, it has to be unique at the level of the Indian territory. The name of the company can be changed due to a set of reasons.
For example, the business may change its objects of activity, it can enter a merger procedure, it may be purchased by new investors who wish to operate the company under a new name and other similar reasons. Our team of consultants in company formation in India can provide legal representation on the procedures that have to be followed in this case.
What are the main steps in changing the name of an Indian company?
The modification of the name of a company operating in India can be done under the supervision of the Ministry of Corporate Affairs (MCA). In order to change the name of the company, the first aspect that has to be completed is to obtain the approval of the company’s shareholders (when we refer to a private limited company). The main steps that must be followed in this case are presented below:
- obtain the shareholders’ approval – this is done through a special resolution that is completed during an extraordinary general meeting;
- during this meeting, the company’s shareholders will approve the modification of the company’s name and will authorize the directors in completing this procedure with the MCA;
- at the same time, the meeting will include the amendment of the company’s articles of association, by stipulating the new company name;
- after the name was approved, the company’s director (or company secretary) can verify if the name is available for registration with the MCA;
- if the name was approved by the MCA, the shareholders will meet again in an extraordinary meeting, in which they will pass the special resolution;
- the Registrar of Companies must also be notified on the modification of the company’s name;
- this is done by filling the Form 1B (which is bound by the payment of a fee).
After this procedure is completed, the Registrar of Companies in India will issue a new certificate, stating the new company name. Further on, all statutory documents have to be amended in order to include the new name and this should also be reflected on any other types of company documents; our team of specialists in company formation in India can assist with more details. It is necessary to know that the procedure for changing the name of an Indian company is prescribed under the Section 13 of the Companies Act.
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What documents should one submit with the Registrar of Companies in India?
The modification of the company’s name is composed only of the steps mentioned above. Even though the procedure can seem simple, it is necessary to know that the company’s representatives have to prepare a set of documents and submit specific forms requested by the MCA and the Registrar of Companies (RoC).
In this sense, the RoC must receive the special resolution taken during the extraordinary meeting of the shareholders and the document must be submitted with the institution in a period of maximum 30 days since the day when the resolution was passed. With it, the investors must provide an explanatory statement of the extraordinary general meeting and the altered articles of association and memorandum of association.
What is the level of foreign direct investments in India?
India is one of the most competitive economies of the world, considering that it has one of the largest consumer markets. Besides this, the country has a very well educated workforce and international companies seek to expand on this market. Those starting a company in India should know that the basic information on the country’s foreign direct investments refers to the following:
- from January to May 2019, 43 new foreign companies were registered in the region of Maharashtra;
- 25 new foreign businesses were incorporated in Delhi (for the same period of time);
- in the region of Haryana, 18 new foreign businesses were opened;
- the highest level of foreign direct investments was attracted in the services sector (accounting for $9,158 million between April 2018-March 2019);
- the second recipient of foreign investments was the computer software and hardware sector (accounting for $6,415 million, measured for the same period of time).
Businessmen are invited to contact our team of specialists in company registration in India for more information on other requirements related to the modification of the company’s name. Our representatives can also assist with information on how to make other changes to an Indian company.