Change Business Activity

Make sure your company’s business activities are updated with MCA

What are the business objectives and its change?

When particularly talking about the company, the business objectives are defined in the main object clause of MoA. These objectives define the scope of the company’s principal business activities within which it may operate. A company cannot undertake those activities, which are not prescribed in its object clause.

With reason of expansion or strategic changes, a company may require to undertake new activities or update business activity in MoA. This change in object clause of MoA is possible after consent of shareholders and the approval from Ministry.

Why change the business objective?

Takeover of the company
Many times a company is a takeover by another company just for the sake of its market value built. The objects of the company acquired must be updated as required for leading the business further. The object can be changed either before or after the takeover depending on the requirement.
Remove abandoned activities
The company’s memorandum is accessible to any person, who may refer it before binding into contractual relation. Hence, one must make sure that the objects are updated with the Ministry even by deleting those activities the company has abandoned to undertake.
New Activities to be undertaken
Addition of new activities is the main reason to change business objective. The change is also backed by the vertical or horizontal expansion of the activities, which were not mentioned while company incorporation. Therefore, prior to undertaking such activities, the company must undertake the change of business activity.
Current activities are banned or prohibited
The Government policies may change anytime, which essentially affects the company and its operations. If the activities undertaken by a company is declared to be prohibited or are banned, such an object must be removed from MoA or changed completely, as required.

Documents required to change Object clause of MoA

MoA & AoA
A copy of latest amended MoA and AoA of the company
Digital Signature Certificate
DSC of one of the authorized director to be provided
Detail of change
Details of the proposed change in activities

Need assistance? Don’t worry, experts are here to help!
Call us at: +91 9729-443-1370 or Email us: info@gameoftaxes.in

Fulfil compliance in 3 Easy Steps

  • Assigned Relationship Manager
  • Drafting of new object clause of MoA
  • Preparation of other necessary documents
  • Preparation and filing of Application
  • Assigned Relationship Manager
  • Drafting of new object clause of MoA
  • Preparation of other necessary documents
  • Preparation and filing of Application

All it takes is 7-10 working days*

*Subject to Government Processing Time

Process of change in object clause

  • Consultancy and assistance for a change of the object
  • Collection of basic Information & documents
  • Drafting of necessary resolutions and documents
  • Drafting of new object clause of MoA
  • Provide documents required drafted after signature
  • Preparation of application for change of business activity
  • Application filing for approval of MCA
  • Government processing time
Explore change of principal business activity

Frequently Asked Questions

When should be kept in mind while changing object?
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.
When is the application to MCA made?
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.
When will the change of object be in effect?
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.
Whether change of business activity requires alteration in MoA?
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.
Whether the change the name of the company is required while change of Object?
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.
Whether the procedure of the change of object and change of name can be carried on simultaneously?
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.

More Questions? Seek Help of an Expert

Call us at: +91 9729-443-137 or Email us: info@gameoftaxes.in