A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and from trading its shares publicly. In addition, the shareholders are limited to 50. Private limited companies are also incorporated; hence it continues to exist even if the owner dies.
The name of the Company is one the most important and foremost steps taken before incorporating a Company. Although, after the Company is incorporated, the name of the Company may need change due to various reasons such as change in management, change in the business objective, change in the brand of the Company, etc.
The change in the name of the Company does not affect the legal details of the Company or the rights and duties of shareholders. In case of change in the name of the Company, a step-by-step procedure is to be followed.
Procedure to change the name of the Company
- A board meeting is held, after providing seven days of notice, to approve the agenda and suggest new names for the Company
- An extraordinary general meeting is then held to get the approval of the shareholders for the proposed names
- Application for the name availability is sent to the Registrar of Companies in form INC-1
- In case of the availability of the proposed name, a certificate is issued to the Company
- An extraordinary general meeting is held to pass the Special Resolution of changing the Company name
- The special resolution passed at the extraordinary general meeting must be filed with form MGT-14 at the Registrar within 30 days of passing the resolution. The form must include the necessary documents:
- Copy of the resolution
- Notice of the extraordinary general meeting
- Statement of the notice
- Memorandum and Articles of Association
- An application form INC-24 must then be filed for the change in the Company name along with the required fees
- After scrutiny and validation of the forms and documents, the Registrar will issue a certificate of incorporation
The next necessary and important step is to change the Company name in the Memorandum and Articles of Association.