How to Change Business Activity?
Change Business Activity
When a company is incorporated, the objectives of business are defined in the main object clause of MOA. The objectives prescribed in the MoA define the scope of company’s principal business activities, within which it may operate. A company must have to undertake the activities, which are prescribed in the MoA only. While planning for an expansion or strategic changes, companies may require to undertake new activities or update business activity in MoA, which can be made through the consent of shareholders of the company and approval for the same by Ministry of Corporate Affairs.
Register Online
Why to Change Business Objective?
Addition of New Business Activity
Addition of business activity, not mentioned while company registration is the main reason for change business objective. A business may have to add new activity with demand of the market or related to its expansion plans and such changes have to be added to the MoA and get approved from Ministry of Corporate Affairs.Show Less
Takeover of the Company
If a company is takeover by other company for the sake of its market value or any other factor and the company which takeover may decide to add/remove activities or to completely change the activity to their requirement. The change in objective can be made before or after takeover of the company.Show Less
Removal of Abandoned Activities
MoA of a company is accessible to any person, who may refer it before getting in to an agreement with the company and hence it would be advisable to make sure that the objectives of the company are updated with the Ministry of Corporate Affairs even by deleting those activities the company has abandoned to undertake.Show Less
Ban or Prohibition of Current Activities
Operations of a company get affected by the Policies of Government, which changes from time to time and by any change of policy, the activities undertaken by any company declared to be prohibited or banned, such objective must be removed from MoA and update the same with Ministry of Corporate Affairs.Show Less
Documents Required to Change Business Activity
DSC
Digital Signature Certificate of Authorized Director
MoA and AoA
Copy of latest amended MoA and AoA of the company
Details of the Change
Details of proposed changes in activity
Change Business Activity in 3 Easy Steps
Step 01
Fill up the registration form
Select any package suits your requirement · Fill up the form which will take less than 10 minutes · Make payment through secure payment gateway. Step 02
BookMyTM is Here to Help
Your queries will be answered quickly and effectively · Consultation on Change of Business Activity · Provide details & documents required for Change of Business Activity · Drafting of new object clause of MoA · Drafting of other necessary documents · Sending the documents to be get signed · Receipt of signed documents from applicants · Preparation and filing of application Step 03
Start business with new objective now
All it takes 8 – 10 working days**Subjected to Government Processing Time
Process of Change Business Activity
- 1
Day 1 - 2
Consultation on Change Business Activity · Collection of Information · Collection of Required Documents (Scanned Copies) · Review of Documents and Information provided
- 2
Day 3 - 4
Drafting of documents including clause in MoA · Sending the documents to get signed from applicants
- 3
Day 5
Receipt of signed documents from applicants · Preparation and filing of application for activity change
- 4
Day 6 - 10
Government Processing Time · *Subjected to Government Processing Time
Faq
One should make sure that the new object also covers all the ancillary activities to the main object. Also, the name should represent the object correctly even after the change of the object, else the RoC may direct name change.
It will be effective only after receipt of approval by the RoC for the application made. Only after approval, the company may carry on updated activities.
An application to update business activity is filed within 30 days of obtaining the consent of shareholders (i.e. General Meeting). It must be noted that the approval is obtained before indulging in activities
Yes, the object clause is part of the Memorandum which must be altered to give the effect of the change of business objective. The said altered MoA shall also be filed with RoC while making an application. Where the Registrar deems appropriate, he may ask for the adoption of new set of Memorandum and Articles in line with Companies Act, 2013.
The change in name of the company is not necessary in every case. However, where the existing name of the company fails to reflect the new activities or any relations thereto, the registrar may direct to change the name of the company accordingly.
If the change of name of the company is made due to a change in the main object of the company, both the procedures can be carried on simultaneously. However, as the approval of the government is involved, the period can vary based on the response and time taken by RoC.
Start building awesome business
Join over 2000+ customers that already received successful trademark registration via BookMyTM
Explore our Services