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Overview
Changing Company Name & Objectives
As a company matures and adapts, its strategic direction may naturally shift from its original plan. When a business decides to change its core objectives, it is a legal requirement to officially amend its Memorandum of Association (MoA) and complete all associated formal procedures.
Our service is designed to simplify this entire process for you, ensuring a smooth and compliant transition as your business enters its new phase. We handle the complexities, allowing you to focus on your company’s growth.
Why Change Business Objectives?
The objectives outlined in a company’s Memorandum of Association (MoA) legally define its scope of business. Changing these objectives is essential for a company to adapt and grow. Here are the main reasons for an amendment:
1. Expanding into New Ventures
As a company expands, it may launch new products, services, or business activities. To legally accommodate these new areas, the company’s objectives must be updated to reflect this broader scope of operations.
2. Company Takeover
When a company is acquired, the new management often changes its vision and strategic direction. These new goals and activities must be officially reflected in the MoA, even if the company’s original brand name remains.
3. Discontinuing Old Activities
Over time, certain business activities may become outdated or unprofitable. To ensure the MoA accurately represents the company’s current focus, these abandoned or unnecessary activities should be removed from its objectives.
4. Responding to Legal Changes
Government regulations and laws can change, sometimes making a previously legal activity prohibited or restricted. Companies must amend their objectives to comply with these new laws and avoid legal penalties.
Process for Changing the Company Objectives
To change a company’s business objectives, you must follow a five-step process to amend the Memorandum of Association (MoA). The MoA outlines the company’s main business activities (main object) and supporting activities (ancillary object).
Step 1: Board Resolution
First, the company’s board of directors must hold a meeting to pass a resolution approving the change in objectives. They will also authorize a director or company secretary to handle the necessary filings with the Registrar of Companies (RoC). Following this, a date, time, and location are set for an Extraordinary General Meeting (EGM) with the company’s members.
Step 2: Special Resolution in EGM
The company must provide a notice with specific details to all members before the EGM. During this meeting, the members vote on the proposed changes. A special resolution is passed, which requires the approval of at least 75% of the members who vote.
Step 3: File Form MGT-14 with RoC
After the special resolution is passed, the company must file Form MGT-14 with the RoC. This form, along with other required documents, officially notifies the RoC of the changes.
Step 4: Issuance of New Certificate of Incorporation
If the change in objectives results in a new industry code, the RoC will issue a new Certificate of Incorporation to the company. This new certificate serves as legal proof of the updated business scope.
Step 5: Update the MoA
Finally, once the RoC has issued the new certificate, the company must update the object clauses in all existing copies of its Memorandum of Association to reflect the changes.
Documents Required to Set up Main Objectives of Business
To legally change a company’s main business objectives, you’ll need to prepare and submit several key documents to the Registrar of Companies (RoC).
Required Documents:
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Notice and Resolutions:
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A copy of the notice for the Extraordinary General Meeting (EGM).
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An attested true copy of the special resolution passed by the members at the EGM.
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Minutes from both the board meeting and the EGM.
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Company Records:
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The altered Memorandum of Association (MoA), showing the new objectives.
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An attendance sheet or register from both the board meetings and general meetings.
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Director Information:
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An optional certified true copy of the board resolution.
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ID and address proof for all company directors.
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Why Taxocity?
Here’s why you should choose Taxocity to handle the process of changing your company’s objectives:
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Simple & Fast Process : We streamline the entire procedure to save you time and effort.
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Expert Guidance : Our specialists will help you determine the most suitable main and ancillary objectives for your business.
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Hassle-Free Documentation : We take care of drafting the resolutions, filling out the necessary forms, and filing them for you.
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MoA Amendments : We ensure all required amendments are correctly made to your Memorandum of Association.
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Dedicated Support : Our team provides continuous support, and we’re always available to answer any questions you may have.
Frequently Asked Questions
Find quick answers to the most common questions about our services
What is the memorandum of association?
The Memorandum of Association (MoA) is a foundational legal document that serves as a company’s charter. It outlines the company’s relationship with its shareholders and clearly defines its objectives, powers, and the scope within which it can operate. The MoA is prepared at the time of the company’s formation and establishes its fundamental rules.
What are articles of association of a company?
The Articles of Association (AoA) is a legal document that outlines a company’s internal rules and regulations for its daily management. It details the duties, rights, and responsibilities of the company’s directors, shareholders, and other stakeholders, ensuring the company operates in a way that fulfills the objectives stated in its Memorandum of Association (MoA).
When will the changes made to the object come into effect?
The changes to a company’s business objectives become effective only after the Registrar of Companies (RoC) accepts and acknowledges the application. Once the company receives this official acknowledgment, it is legally permitted to begin its updated activities.
Do we have to change the company's name because we are altering the objectives of the company?
No, you do not have to change a company’s name just because you are altering its objectives. The two processes are not directly dependent on each other.
However, if the company’s new activities are completely unrelated to its current name, the Registrar of Companies (RoC) may require a name change. This is to ensure the company’s name accurately reflects its updated business operations.
Can a company have two main objectives of business?
Yes, a company can have more than one main business objective. These objectives are typically outlined in the company’s Memorandum of Association (MoA). While a company can pursue multiple objectives, they should all be relevant to and align with its core business activities.
Is the process completely online?
Yes, the entire process is completely online. We provide a dashboard where you can comfortably manage every step of the process from start to finish.
What is a business objective?
A business objective is a specific, measurable goal that an organization aims to achieve as it grows. These objectives provide a clear and quantifiable target for a company, helping to guide its strategic decisions and evaluate its progress over time. They require a clear understanding of a company’s current position and a definitive vision for its future.
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