Updated MOA and AOA for change of business activity. Assisted by EOB with a hasslefree experience.
Fee: Rs. 4000 (All Incl).
Want us to get in touch?
Change in Business Acitivity
The Business Objectives and Activity of any company are defined in the MOA of the company It clearly explains the scope of the business activity which it desires to engage in. The company cannot indulge in business activities which are not defined in the MoA.
However, the MOA can be amended to changed from time to time include any change in business activities. The reason for these changes could be due to change in business situations, government regulations or any other factors. These changes in the MoA can be done after approval of the shareholders and the MCA.
Possible Reasons for change of Business Activity?
The most common reason is when a business adds new activities to their existing set of activities. As a business progresses, there is a need for expansion into areas that bring value and profitability to the business. It could be a backward integration, a horizontal expansion or any other reason. This may not have been envisioned during the initial days of the business. These additional activities can be undertaken only after amendments in the MoA approved by the MCA.
There are cases where a company is being acquired or is acquiring another business to build market value and expand further. In such instances, The activities of business in the MoA can be changed according to the change in overall business, either before or after the acquisition.
Sometimes, the company includes a few activities in the MoA with the plan of pursuing it but may not do so once business commences. These activities can be removed and updated in the MCA to give potential investors and business associates clarity about your business objectives. Since an MoA is a publicly accessible document, the objectives of the business should be inline with the current activities.
There are instances where change in government regulations may affect the company’s operations. It could due to a ban on a certain product or change in guidelines to conduct such business. In such cases the company may choose to remove such activities from its MoA and change the activities in the MoA as per the new direction the business intends to pursue.
Change of Business Activity
Documents required to change Object clause of MoA
THE PROCEDURE
Process of change in object clause
There are a series of steps before the company formation is completed. They are listed below for easy reference. The entire procedure takes 10 to 12 working days to complete (Based on standard government processing time).
- Discussion and collection of information and documents.
- Drafting of necessary resolutions and documents
- Drafting of new object clause of MoA
- Submit documents for signatures as required.
- Complete application for change of business activity
- Filing for approval in MCA
- Await confirmation from MCA for request changes.
FREQUENTLY ASKED QUESTIONS
Explore Change of Business Activity
Points to note while change the Objectives or Business Activity?
Please ensure that the change in business activity covers all the main and associated activities for that category. If this change doesn’t go with the existing name of the business, the RoC may insist on changing the name of the business.
When do we apply to the MCA for this change?
Shareholders consent is mandatory for any such change in the MoA. Once approved by the shareholders, the same can be filed with the MCA within 30 days of getting the shareholder approval.
When will the change of object be in effect?
The change of business activity is effective only after approval from MCA. Please note that the company can commence the new business activity only after approval from the MCA.
Will change of Business Activity require Change of the company name?
Not always. If your existing company doesn’t reflect clearly the nature of business, then such a change will be required as directed by the Registrar of companies.
FROM BLOG
Helpful Resources
