Company Object Change

Empowering Change: Transforming Company Objectives with Ease


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Clause of MoA

When particularly talking about the company, the business objectives are defined in the main object clause of MoA.

Define scope

These objectives define the scope of the company’s principal business activities within which it may operate.

Object clause

A company cannot undertake those activities, which are not prescribed in its object clause.

Why change the business objective?

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.

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.

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

Digital Signature Certificate

Detail of change

Change business object in 3 Easy Steps

  • Fill in our questionnaires that take less than 10 minutes
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways
  • Assigned Relationship Manager
  • Drafting of new object clause of MoA
  • Preparation of other necessary documents
  • Preparation and filing of Application

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

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Have Questions? Find Answers Here

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 Mo 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.

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