MCA eForm INC-24

MCA e-Form INC-24 is an essential document prescribed by the crucial Ministry of Corporate Affairs (MCA) in India. It is used for obtaining approval for a change in a company’s name. This form must be filed after securing approval for the name change via the INC-1 or SPICe+ form and passing a special resolution.

The name of a company is a crucial part of its identity and branding. Various businesses may decide to alter their names for different purposes like strategic, rebranding, promotion, audience engagement, promotion and compliance reasons. However, the process requires legal validation to ensure transparency, accountability and compliance with corporate governance principles.

This article will deal with the understanding of the MCA e-Form INC-24, including its purpose, applicability, legal provisions, documentation, step-by-step filing procedure, fees, and common issues faced during submission.

Purpose of MCA e-Form INC-24

The primary purpose of e-Form INC-24 is to obtain approval from the Central Government (via the Registrar of Companies) for changing a company name. The form facilitates compliance with Sections 13(2), 13(3) of the Companies Act, 2013.

Key objectives include:

• Formalizing the new company name after obtaining approval from MCA.
• Ensuring legal compliance in changing the Memorandum of Association (MOA) and Articles of Association (AOA).
• Updating records with the Registrar of Companies (ROC) to reflect the name change.
• Avoiding penalties for operating under an unauthorized name.

Legal Provisions Governing MCA eForm INC-24

The change of a company’s name is governed by:

1. Section 13(2) of the Companies Act, 2013 – This mandates that a company’s name change requires approval through a special resolution and subsequent Central Government consent.
2. Rule no. 29 of the Companies (Incorporation) Rules, 2014 – Specifies the procedural requirements for a company name change.
3. Companies (Incorporation) Rules, 2014 – Governs the e-Form INC-24 submission process.
4. Section 4(2) & Section 4(3) of the Companies Act, 2013 – Establishes name reservation procedures through RUN or SPICe+.

Applicability of MCA e-Form INC-24

MCA e-Form INC-24 is applicable in the following cases:

• Change of Name for Private Limited, Public Limited, and One-Person Companies (OPC)
• Voluntary Name Change for branding, mergers, acquisitions, or restructuring.
• Regulatory Name Change mandated by government authorities.
• Removal of ‘Limited’ or ‘Private Limited’ from a company’s name in special cases.

Documents Required for Filing INC-24

Before filing INC-24, ensure that you have the necessary documents:

1. Certified True Copy of Special Resolution (Passed in an Extraordinary General Meeting – EGM).
2. Copy of Notice and Explanatory Statement for EGM.
3. Altered MOA and AOA reflecting the new company name.
4. Name Approval Letter from MCA (obtained via RUN or SPICe+).
5. Board Resolution authorizing the director to file INC-24.
6. Digital Signature Certificate (DSC) of the Director.
7. Director Identification Number (DIN) of the Director filing the form.

Step-by-Step Process to File MCA eForm INC-24

Step 1: Obtain Name Approval

• Submit RUN (Reserve Unique Name) or SPICe+ form via the MCA portal.
• Ensure the proposed name complies with naming guidelines and is available.
• Receive approval confirmation from MCA.

Step 2: Pass a Special Resolution in EGM

• Convene an Extraordinary General Meeting (EGM).
• Pass a special resolution for the name change.
• Ensure the minutes and necessary resolutions are documented.

Step 3: Prepare and File INC-24

• Download eForm INC-24 from the MCA portal.
• Fill in the following details:

• • Company’s existing name and CIN (Corporate Identification Number).

• • Proposed new name (as approved by MCA).

• • Date of passing the special resolution.

• • Details of EGM, including resolution number and date.

• • Declaration confirming compliance with statutory requirements.

• Attach supporting documents (MOA, AOA, Resolution Copies, etc.).
• Get the eForm digitally signed by a Director with a DSC.
• Certify the form by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA).

Step 4: Payment of Fees

• Pay the statutory fees based on company capital:

• • Up to ₹1,00,000 – ₹1,000

• • ₹1,00,000 – ₹5,00,000 – ₹2,000

• • ₹5,00,000 – ₹25,00,000 – ₹4,000

• • ₹25,00,000 – ₹1 Crore – ₹10,000

• • More than ₹1 Crore – ₹20,000

Step 5: Verification and Approval

• Once submitted, the ROC verifies the form and attached documents.
• If all details are correct, the new company name is approved.
• A new Certificate of Incorporation (COI) with the updated name is issued.

Common Issues and Solutions in Filing INC-24

1. Rejection of proposed name – Ensure the new name complies with MCA guidelines and provisions and does not resemble an existing entity, then it will consider as a violation of MCA rules.
2. Incorrect Resolutions – Draft resolutions carefully, ensuring alignment with legal requirements.
3. Technical Errors in Form Submission – Verify digital signatures and attachments before submission.
4. Incomplete Documentation – Attach all required documents in proper format.
5. Non-compliance with MOA/AOA Amendments – Ensure the updated MOA and AOA reflect the name change.

Post-Approval Compliance

Once the name change is approved, companies must:

• Update Business Documents – Including Letterheads, Invoices, and Agreements.
• Inform Stakeholders – Customers, vendors, and financial institutions.
• Update PAN, GST, and Other Registrations – Updating essential required documents is necessary to avoid operational issues.
• Modify Website and Digital Assets – Modification of required elements is important which Includes domain names and social media profiles.

Additional Considerations for Name Change

1. Impact on Trademarks – Ensure the new name does not infringe on any existing trademarks to avoid legal disputes.
2. Compliance with SEBI (if applicable) – Publicly listed companies must also notify the Securities and Exchange Board of India (SEBI) and stock exchanges.
3. Impact on Contracts and Agreements – Existing agreements, licenses, and contracts may need amendments reflecting the new name.
4. Customer and Supplier Communication – To notify the key stakeholders of the company is a vital step to ensure smooth business operations.
5. Update Branding and Marketing Materials – Updating the company logos, website content and official documents or other basic documents to reflect the name change.

Conclusion

MCA eForm INC-24 is an essential requirement for legally changing a company’s name. Proper compliance with the process, documentation, and compliance ensures seamless and smooth approval from the MCA. By understanding the legal framework, structure, and procedural steps, businesses can efficiently navigate the process and maintain regulatory compliance, so it is essential to follow the regulations provided by the MCA to avoid unnecessary delays and complexities in the approval process.

For a hassle-free experience, companies may also seek professional assistance from Company Secretaries or Chartered Accountants to ensure accurate filing and approval. Or any other experts so that they can do what is necessary and make wise decisions; that is why it is highly advisable to get the proper guidance and knowledge from professionals

A successful company name change not only strengthens a brand identity but also ensures continued legal recognition and operational efficiency, so always be careful about the process and regulation because it involves the company’s brand value and image in the ecosystem of the business market.