There are several reasons why the name of a private limited company may have to be changed, including the change of objectives of the business, the change in management, the rebranding of the company, etc. A company’s name can be changed at any time with the approval of its shareholders and Ministry of Corporate Affairs (MCA).
Change of name of private limited company
Private limited companies are able to change their names after incorporation as well as the name adopted upon incorporation. The shareholders of a private limited company must adopt a special resolution in order to change the name of their company, and the company must also obtain MCA approval before it can change its name. It should be noted that a change in the name of a private limited company does not adversely affect the legal status of the company or its status as a corporate body. When the name of a company is changed, a new entity will not be created, nor will it create a new company. Thus, it is essential to clarify that a company name change shall NOT:
- Regardless of whether or not this affects any right or obligation of the company.
- As such, any legal proceedings initiated by the company or against it will be rendered defective.
- Any legal proceedings that are pending by or against the company and those in the old name can continue in the old name; they will not be affected.
Approval of name for a private company
As a start-up, choosing the right name for the business is one of the most important and hardest parts of the whole process. Since your business name will be your primary calling card, this name will appear in all of the places where you will be displaying the name of your business. The naming of your company is therefore crucial because it creates a good first impression and conveys a sense of intrigue and clarity to the audience. In this article, we will take a closer look at some of the regulations laid down by the Ministry of Corporate Affairs (MCA) in order to determine the name of a Private Limited Company in India.
Names that are desirable
The Companies Act, 2013 stipulates that no company will be registered with a name considered unattractive by the public. An unsuitable name for a private limited company is one that is identical or closely resembling one that is in existence or has been approved by the Registrar, or a name of a limited liability company that is in existence or has been approved by the Registrar, or that resembles a registered trademark or trademark application. In addition to this, names that violate the provisions of the Emblems and Names Law and/or that are deemed undesirable and/or that contain profanity or words or phrases that are generally offensive to any sections of the population will be prohibited as well.