OBJECTIVE OF BUSINESS AND ITS CHANGE

The business objectives are defined in the main object clause of MoA, when particularly talking about the company. The business objectives define the scope of the company's principal of business activities within which it may operate. A company cannot undertake those activities, which are not mentioned in its object clause. With strategic changes there is a reason of expansion, a company may require to undertake new activities or update business activities in MoA. After the approval from Ministry and consent of shareholders this change in object clause of MoA is possible.

CHANGE IN THE OBJECTIVE OF THE BUSINESS

• New Activities to be undertaken: the main reason to change business objective is the addition of new activities. The change is also backed by the horizontal or vertical expansion of the activities, which were not mentioned while incorporation of company. Therefore, the company must undertake the change of business activity prior to undertaking such activities.

• Takeover of the Company: many times a company is takeover by another company just for the sake of its good market value. For leading the business further the objects of the company acquired must be updated. The object can be changed either before or after the takeover depending on the requirement.

• Removal of Abandoned activities: the memorandum of the company is accessible to any person, who may refer it before binding into contractual relation. Hence, one must make sure that the objects must be updated with the Ministry even by deleting certain activities that the company has abandoned to undertake.

• Ban or prohibition of Current activities: The Government policies have the probability to change anytime, which essentially affects the company and its operations. If the undertaken activities by a company is declared to be banned or prohibited, such an object must be changed completely or removed from MoA, as required.

WHAT ARE THE DOCUMENTS REQUIRED TO CHANGE OBJECT CLAUSE OF MoA?

• Digital Signature Certificate

• Detail of change

• MoA & AoA

Documents required to change object clause of MoA

MoA & AoA

A copy of latest amended MoA and AoA of the company

Digital Signature Certificate

DSC of one of the authorized director to be provided

Detail of Change

Details of the proposed change in activites

WHAT IS THE PROCESS OF CHANGE IN OBJECT CLAUSE?

1. DAY1:

• Taking consultation and assistance for a change of the object.

• Collecting all the basic information and documents.

2. DAY 2-3

• Drafting all the necessary documents and resolutions.

• Drafting all the new object clause of MoA.

• After signature provide all the required drafted documents.

3. DAY 4-5
• Preparing an application for change of business activity
• Filing an application for approval of MCA.
4. DAY 5 onwards
• Government processing time.