If you are not happy with the name of your company due to some reasons, you can go for its name change. The reasons can vary from business model change, change of promoters, need for rebranding, and so on. But to effect a change in your company’s the name, you need shareholders’ approval, apart from the nod from the Ministry of Corporate Affairs (MCA). However, rest assured, the change in name bears no impact on the legal entity or existence of a company. The assets as well as liabilities of the entity would remain the same, irrespective of change of its name.
Change of a company’s requires passing of a board resolution, and approval of the name change from the MCA. If the MCA accepts the application for name change, it issues a new certificate of incorporation to the company concerned. After a company gets a new certificate of incorporation, it must make changes in its Memorandum of Association and Article of Association too.
As a legal entity and a juristic person established under the Companies Act, a Private Limited Company absolves shareholders/directors of any personal liability to the creditors. So, change in name makes no material difference in the functions and liabilities of a company.
Private Limited Company enjoys an uninterrupted existence until it lawfully shuts down. Considered a separate legal person, it is unaffected by the demise or departure of any of its members. It continues to be in operation irrespective of the changes in ownership or name.
To fund its operations and expansions, a Private Limited Company can raise equity funds and bank finance. It can also issue equity shares, preference shares, debentures and accept deposits subject to the RBI’s permission. All these advantages remain unaffected irrespective of its name change.
Ownership of a Private Limited company can be by way of signing and filing of share transfer form and certificates. However, the consent of other shareholders is usually required to effect share transfers. All these facts remain unchanged with or without a change of company’s name.
Irrespective of name change, a Private Limited Company can continue to acquire, own, enjoy and alienate, property whether in the form of machinery, building, intangible assets, land, residential property, or factory.
Great Solution is prominent business and legal consultancy in India, offering a host of services such as company registration, name change, trademark registration, tax registration, tax filing, compliance, legal documentation and more.
We would ensure that the average time taken to complete your company’s name change does not exceed 60 working days.
You can get a free consultation on your company’s name change by scheduling an appointment with the Expert Advisor of Great Solution here.
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