Change in Object Clause of Company
Your trusted partner for business activity restructuring — ensuring legally compliant modification of company objectives under MCA regulations.
Overview
The Object Clause of a company, defined in its Memorandum of Association (MoA), specifies the scope of activities the company is legally permitted to undertake. A Change in Object Clause becomes necessary when a company intends to expand into new business areas, diversify operations, or pivot its business model.
This process is governed under the Companies Act, 2013 and requires approval from shareholders via a Special Resolution and formal filing with the Registrar of Companies (RoC). Without updating the object clause, a company cannot legally undertake activities beyond its defined scope, as such actions would be considered 'ultra vires'.
Key Benefits
Legal Expansion
Enables your company to legally enter new industries and undertake diverse business activities.
Regulatory Compliance
Ensures all business operations are authorized by the MCA, preventing legal penalties.
Strategic Alignment
Update your corporate charter to match your current business goals and market opportunities.
Funding Eligibility
Correctly defined objects are often a prerequisite for industry-specific business loans and VC funding.
Tender Participation
Align your MoA with the specific activity requirements mentioned in government or private tenders.
Operational Flexibility
Provides the legal framework to pivot your business model without needing a new entity.
Eligibility Requirements
Ensure your business meets these basic criteria for a smooth registration process.
Expert Tip
Having all directors present in India is not mandatory, but at least one director must be a resident of India (stayed in India for 182+ days).
Documents Required
Keep these documents ready to fast-track your application.
Corporate Documents
- Current Certificate of Incorporation
- Existing MoA & AOA
- Digital Signatures (DSC) of Directors
Required Resolutions
- Board Resolution for MoA Amendment
- Special Resolution from Shareholders
- Minutes of the EGM
Application Details
- Revised Object Clause (Main Objects)
- Notice of the Extraordinary General Meeting
- Explanatory Statement for Change
Registration Process
Our seamless digital-first approach ensures completion in the fastest possible time.
Consultation & Clause Drafting
Understanding new business goals and drafting a legally sound object clause.
Board Meeting & Approval
Passing a resolution to approve the change and authorizing the EGM.
Extraordinary General Meeting (EGM)
Obtaining consent from shareholders through a Special Resolution (75% majority).
Filing Form MGT-14
Submitting the special resolution to the ROC within 30 days of the EGM.
MoA Alteration & Submission
Updating the Memorandum of Association with the new objective clause.
ROC Review & Approval
Processing of the application by the Ministry of Corporate Affairs.
Registration of Change
Issuance of the official confirmation/certificate of registration for the new objects.
Post-Approval Updates
Updating the new activities in GST, Banking, and industry-specific licenses.
Mandatory Compliance
Staying compliant is crucial for your company's good standing. Non-compliance may lead to penalties and director disqualification.
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FAQs
Common questions about Change in Object Clause of Company
Ready to Expand Your Business Horizons?
Modify your company's Object Clause seamlessly with expert legal support from Bizmint LLP.