Company Object Change
Rs. 6647/- (All Inclusive)
Alteration of Main Object of Private Limited
How to Change of Object of a Private Limited Company
Alteration of Object Clause
Object clause of a company can be defined as a range of business activities that a company can undertake. It is an activity through which a company generates its revenue/business Income. There can be many reasons for change in object of a company for example:
- Expansion of existing business by adding activity which is in line with the current business of the company;
- Change of entire object of the company, as the company is entering into new business activity due to change in prevailing business environment;
- Modification in current object of the company by deleting certain activity which is not undertaken by the company neither the company is planning to do so in future etc.
The Company can change its business activities by making addition, alteration, modification and/or deletion in its existing object clause by way of passing of special resolution in a shareholders’ meeting.
How much does it cost to change object of a Company?
Step wise procedure for change of object clause of Private Company
- Calling and holding of board meeting: The board of directors, after discussion, shall pass the resolution related to change of object and alteration of Memorandum of Association of the company.
- Notice of general meeting of the shareholders, shall be issued by any of the director/authorised person of the company, who is authorised by the board of directors.
- The shareholders of the company shall pass the related resolutions for change of object clause and alteration of Memorandum of Association.
- File e-forms MGT-14 with the registrar of companies with all the attachments.
- The Registrar of Companies after verifying the documents submitted alongwith the e-form MGT-14 shall register the alteration to Memorandum of Association.
FAQs on Company Object Change
Alteration of Object means changing the business activities of a company, from which the company generate revenues or earn income. Alteration can be in the form of deletion, modification or addition of certain activities from the object clause of the company.
Yes, there no restriction on a company to change its object. A company can change its object as per the applicable provisions of the Companies Act, 2013 and rules made thereunder. However the company shall complete the post incorporation formalities such as filing of commencement of business, appointment of auditor before proceeding with change in object.
For altering the Memorandum of Association and Articles of Association of the Company shareholders’ approval is mandatory. However there are certain clauses of the Memorandum of Association that can be altered only after the approval of the appropriate authority. For example: Shifting of registered office address of a company from one state to another state and change of name in both the cases approval of central government is mandatory in addition to the shareholders’ approval.
For alteration of object clause the procedure is as follows:
- Call and convey a board meeting.
- Issue notice of general meeting of the shareholders.
- Hold the shareholders meetings and pass the resolutions related to alteration of Memorandum of Association
- File the form MGT-14 with all the attachments.
For alteration of object clause of Memorandum of Association, the approval of shareholders by way of special resolution is required.
In shareholders meeting the alteration to Memorandum of Association and Articles of Association are approved.
A company can have more than one main object, however the same shall be related to each other.
A company can do only those business activities which are mentioned in its Memorandum of Association. Anything not mentioned in the Memorandum of Association of the company is not permitted as per the Companies Act, 2013.
The company can carry on more than one business activities, however the activities shall be related to each other.
The object clause of a company is mentioned in the Memorandum of Association of Company.
No, the company is not permitted do anything which is not mentioned in its object clause. For doing activities outside its objects the company shall amend its Memorandum of Association.