Change in Object Clause of Company

Modify your company's business activities by changing the object clause in the Memorandum of Association (MoA) with expert legal support from Corporate Analytica.



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Everything You Need to Know

Overview of Change in Object Clause

The object clause defines the purpose and scope of a company’s activities. If a company wishes to expand, pivot, or modify its core operations, it must amend this clause in the Memorandum of Association (MoA) by following the procedure under the Companies Act, 2013.

Why Change the Object Clause?

  • Expand into new business verticals or geographies
  • Comply with regulatory or investor requirements
  • Update outdated business descriptions
  • Restructure operations or diversify activities
  • Align legal documents with actual business plans

Eligibility Criteria

  • Company must be registered with the Ministry of Corporate Affairs (MCA)
  • Must have a valid Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  • Board resolution passed for object clause alteration
  • Shareholders’ approval through a special resolution

Documents Required

  • Board Resolution for change in object clause
  • Notice of Extraordinary General Meeting (EGM)
  • Shareholders’ Special Resolution
  • Altered MoA with new object clause
  • Form MGT-14 and supporting documents

Process of Changing Object Clause

  1. Step 1: Hold a Board Meeting and approve draft resolution
  2. Step 2: Issue notice for EGM to shareholders
  3. Step 3: Conduct EGM and pass Special Resolution
  4. Step 4: File Form MGT-14 with MCA within 30 days
  5. Step 5: MoA is updated with new object clause after approval

Why Choose Corporate Analytica?

  • Expert legal drafting of resolutions and MoA
  • Dedicated compliance managers for end-to-end support
  • Timely filing with MCA to avoid penalties
  • Transparent process and fixed pricing
  • Pan-India and international client servicing

Other Mandatory Compliances

  • DIR-3 KYC for all directors
  • MSME Return if applicable (Form MSME-1)
  • Filing of DPT-3 for any unsecured loans
  • Maintaining Statutory Registers & Minutes Book
  • Compliances under GST, TDS, PF/ESI if applicable

Penalty for Non-Compliance

  • Failure to follow rules may lead to fines.
  • Missing renewal deadlines can attract penalties.
  • Providing false information may invite legal action.
  • Serious violations can even cause project shutdown.

Frequently Asked Questions (Change in Object Clause)

Q1. Is shareholder approval mandatory?

Yes, a Special Resolution must be passed in a general meeting to change the object clause.

Q2. What is the government fee for MGT-14?

The MCA fee depends on the company's authorized share capital. It typically ranges between ₹300 to ₹600.

Q3. Can a private limited company change its object clause multiple times?

Yes, there is no limit, provided each change follows due process under the Companies Act.

Q4. Is alteration effective immediately after filing?

The change becomes effective once the MCA approves Form MGT-14 and issues an updated certificate.

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