A Company is identified by a name and the selection of name is as per the discretion of a company. In other words, a company can alter its name whenever it wants to. However, the name change should be as per the regulations and procedures of company laws.
Reasons for Changing company’s name
- Change of business activity of the company.
- Change to reflect brand of the company.
- Change as per government order.
Conditions to fulfill for Changing Company’s Name:
- A time period of at least 1 year should have elapsed from the last name change.
- At least 50% of its total revenue in the preceding 1 year period should have been accounted for by the new activity suggested by the new name, or, the amount invested in the new activity/project is at least 50% of the assets of the company.
- The new name along with the old name shall be disclosed through the web sites of the respective stock exchange/s where the company is listed for a continuous period of one year, from the date of the last name change.