How to Make Changes to Your Indian Company
Updated on Tuesday 15th January 2019
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Just like in the case of other jurisdictions, businesses registered in India can make various changes during their years of activity. Businessmen who want to open a company in India should know that the aspects decided upon during the incorporation procedure can be modified over time, provided that there is a need in this sense.
Some of the most common changes that can be made to an Indian company refer to the company’s trading name and to its business address; the latter can be changed frequently due to a set of reasons – for example, the company can develop at a fast pace and it can be in the need of supplementary employees and thus, in the need of a larger office; the company’s official address can also be changed based on the value of the rent, investment plans and numerous others.
Our team of specialists in company formation in India can assist local and foreign businessmen with in-depth advice on the main procedures that have to be employed when making a specific type of change for a local business; our representatives can offer an extensive presentation on the documents that have to be subscribed with the local authorities and may inform on any other inquiry related to this subject.
How can an Indian business change its trading name?
One of the principal aspects that have to be concluded by those interested in how to form a company in India refers to the company’s trading name. A suitable trading name in India has to be unique at the level of the entire country, and in the situation in which the company’s representatives want to change the name due to various reasons, the same regulation will apply. The procedure of changing the company’s trading name in India is comprised of several compulsory steps, that are presented below:
- passing a board resolution – this will take place during a board meeting of the company, in which the directors will approve the new company name;
- verify if the new proposed trading name is available – this procedure will fall under the supervision of the authorized director, who will need to file specific forms;
- the above mentioned procedure may also be concluded by the company’s secretary and, regardless of the person who will handle it, it will be necessary to file the Form INC-1 to the Ministry of Corporate Affairs in India;
- the availability of the name will be confirmed by the Registrar of Companies (RoC);
- once the institutions have agreed on the new company name, the company’s representatives will pass a special resolution and will modify the company’s statutory documents;
- the resolution will be filed with the RoC in a period of 30 days since the day in which the resolution was passed and signed by the company’s representatives;
- in order for the process of changing the company name to be completed, the RoC has to issue a new certificate of incorporation.
How can an Indian company change its business address?
Another common change that usually happens for those starting a company in India refers to the modification of the company’s business address. All Indian businesses must have a registered office, which designates an official address that was registered with the Registrar of Companies during the procedure of company formation in India.
It is important to know that Indian businesses are allowed to change their official business address from one state to another, which is regulated under the Section 12 and Section 13 of the Companies Act 2013. Other rules of law concerning this matter are prescribed by the Company Incorporation Rules 2014, which can be presented by our team of consultants in company registration in India.
In order to relocate the address of a local business from one Indian state to another, a specific set of steps have to be concluded and a wide range of documents have to be prepared, and we strongly advise you to receive professional assistance on this matter.
When doing so, it is necessary to know that the relocation decision has to be sustained by at least 75% of the persons who have voting rights within the company, an aspect which will be decided during an extraordinary general meeting of the shareholders. During this meeting, the parties will need to sign a special resolution, that will have to be submitted with the RoC in a period of maximum 30 days since the decision was approved.
In the situation in which the company will change its official address registered with the RoC and if the new office will be in the same city/region, the procedure can be completed without any prior approval from the local institutions. Furthermore, it will not be necessary to set up any shareholders meetings, but it is still required to announce the RoC on the change, by filling the Form INC-22. Businessmen are invited to contact our team of consultants for more details on other types of changes that can be applied to an Indian business.