Upgrade Your Sole Proprietorship and Experience the Advantages of a One Person Company (OPC)
The business objectives of a company are outlined in the main object clause of its Memorandum of Association (MoA). These objectives define the scope of the company’s core business activities and set the boundaries within which it is legally permitted to operate. A company is not allowed to engage in activities that fall outside of this defined scope.
However, with business expansion or strategic shifts, a company may need to pursue new ventures or revise its existing objectives. In such cases, the object clause in the MoA must be updated accordingly. This amendment requires the approval of the shareholders and must also be sanctioned by the Ministry of Corporate Affairs.
The primary reason for changing a company’s business objectives is the addition of new activities. Such changes are often driven by vertical or horizontal expansion into areas not originally included at the time of incorporation. Therefore, before engaging in these new activities, the company must formally update its business objectives by amending the object clause of the Memorandum of Association.
Often, a company is acquired by another primarily for its established market value. Following such a takeover, the acquired company’s object clause may need to be updated to align with the future direction of the business. This change can be made either before or after the acquisition, depending on the specific requirements.
The company’s memorandum is publicly accessible and can be reviewed by anyone before entering into a contractual relationship. Therefore, it is important to ensure that the object clause is kept up to date with the Ministry, including the removal of any activities the company no longer intends to pursue.
Government policies can change at any time, directly impacting a company and its operations. If any of the company’s activities become prohibited or banned, the corresponding objects must be removed or amended in the Memorandum of Association as necessary.
A copy of latest amended MoA and AoA of the company
DSC of one of the authorized director to be provided
Details of the proposed change in activities
Call us at: 9414883452 or Email us : contact@submitreturn.com
*Subject to Government processing time
The changes become effective only after the Registrar of Companies (RoC) approves the application. The company may undertake the updated activities only once this approval is received.
A name change is not required in every case. However, if the current company name does not accurately reflect the new activities or their related aspects, the Registrar may require the company to change its name accordingly.
If the company’s name is changed due to an alteration in its main object, both processes can be carried out simultaneously. However, since government approval is required, the timeline may vary depending on the response time of the Registrar of Companies (RoC).
Call us at: 9414883452 or Email us : contact@submitreturn.com
Here’s what keeps us going strong.
