Overview of Changing the Objective of a Private Limited Company

When one starts a business, the objectives of the company is mentioned in the main object clause of the Memorandum of Association (MoA). The scope of the principal business activities within which the entity has to operate is defined in these object clauses. The company is not allowed to conduct any business activities beyond the scope of these clauses. However, there are times when the company is acquired or expanded, or there is a strategic change; in these cases, it becomes crucial to amend the Memorandum of Association of the company.

We at Taxrepair have an excellent team to take care of all the legalities pertaining to the changes in the objective/activity of the company. Our team is always well informed about any changes in the rules or regulations that will affect the amendment of the objective of the company.

Documents Required for Changing the Objective/Activity of a Private Limited Company

• Notice of the Extraordinary General Meeting (EGM) to all the directors
• Explanatory Statement to the Notice to all the directors
• Certified copy of the special resolution about the change in objective
• Detailed Minutes of the board meeting and the extraordinary general meeting
• Altered Memorandum of Association (MoA)
• Certified Copy of the Board Resolution (Optional)
• Scanned copy of all the Directors of the company (for ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• Scanned copy of all the directors of the company (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• mobile or telephone bill
• gas or electricity bill
• Register of board meetings and general meetings or Attendance sheet

Reasons for Changing the Company Objective of a Private Limited Company

1. Commencing New Undertakings

When a business is growing in every form, it is vital to change the objective of the company to accommodate the change, which is conducive to the growth of the entity. Therefore, the change in the objective will be the new business objective, and those are the clauses that the business has to follow while conducting the business.

2. Acquisition of the Business

When a different company acquires the business, the branding of the business might remain the same by the way the industry is functioning. However, the vision and mission of the company might be in conjunction with the parent company. At this time, there is a need to change the objective of the acquired company.

3. Discard Certain Activities

The initial Memorandum of Association (MoA) might have specific activities that seemed important at that time, but as the business grew, those activities became irrelevant. Therefore, there is a need to change the objective of the company in order to take out these abandoned activities mentioned in the original MoA.

4. Removing Prohibited or Banned Activities

Policies of Government are subject to change; with the shift in economic policy, there might be some business activity that was legal when the MoA was drafted, but due to some changes in the policy, it has been declared illegal. So, to avoid any legal consequence, it is advisable to avoid those particular activities and change those activities from the original MoA.

Timelines of changes in the Objectives/ Activities of Private Limited Company

Our Team at Taxrepair have expertise in changing the objectives mentioned in the Memorandum of Association for our clients. Our professionals will guide you in determining what changes is required in the main or ancillary objectives. We give our clients the best of support and guarantee that all the process of changing the objective of the company is done seamlessly.