Change Business Activity

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

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Change Business Activity

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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?

Documents required to change Object clause of MoA

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Change business object in 3 Easy Steps

*Subject to Government processing time

Process of change in object clause

Explore change of principal business activity

Frequently Asked Questions

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.

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.

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.

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.

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