Change Business Activity
An organization’s intentional and planned effort to alter its processes, strategies, culture, or operations in response to internal or external factors is commonly referred to as a “change business activity.” The purpose of this activity is to improve performance, increase efficiency, boost competitiveness, or adapt to changing circumstances such as market trends, customer preferences, regulatory updates, or technological advancements.
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INTRODUCTION
What are business objectives, and how do they change?
The object clause of the Memorandum of Association (MoA) defines a company’s business objectives in clear terms. These objectives set the boundaries for the company’s main business activities that it is legally permitted to carry out. A company cannot engage in any activities that fall outside its object clause.However, a company may need to amend its business objectives in the MoA or undertake new activities due to growth, diversification, or strategic changes. To do so, the company must obtain the consent of its shareholders and the necessary approval from the Ministry of Corporate Affairs (MCA). Once approved, the object clause in the MoA is updated to reflect the new business activities.
Advantage
Why Change the Business Objective?
Undertake New Activities
The most common reason to change a company’s business objective is to add new activities that were not included during incorporation. As the company grows, it may expand vertically or horizontally into new areas. Before starting any new business operations not covered in the original MoA, it is mandatory to update the object clause.
Takeover of the Company
When a company is taken over by another business, it is often for its brand value, goodwill, or market presence. To align the acquired company’s operations with the goals of the new management, its objects may need to be updated. This can be done either before or after the takeover, depending on the business strategy.
Remove Abandoned Activities
The company’s Memorandum of Association is a public document. Anyone may review it before entering into contracts or business relationships. Therefore, it is important to keep the objects clause up to date, including removing any activities the company no longer undertakes.
Comply with Regulatory Changes
Government policies and industry regulations can change at any time. If any of the company’s current activities are banned, restricted, or become non-compliant with new laws, the company must update its object clause to reflect the change and remain legally compliant.
A LIST OF DOCUMENTS
📑 Documents Required to Change the Object Clause of MoA
✅ MoA & AoA
A copy of the latest amended Memorandum of Association (MoA) and Articles of Association (AoA) of the company.
✅ Digital Signature Certificate (DSC)
A valid DSC of one of the authorised directors is required for filing forms with the Ministry of Corporate Affairs (MCA).
✅ Details of Proposed Change
A clear description of the proposed new business activities to be added, modified, or removed from the object clause.
Change Business Object in 3 Easy Steps
1️⃣ Answer Quick Questions
Fill out our simple questionnaire — takes less than 10 minutes!
Share basic details & upload required documents.
Make payment securely through trusted gateways.
2️⃣ Experts Are Here to Help
Get a dedicated Relationship Manager.
Drafting of your new Object Clause in the MoA.
Preparation of required resolutions and documents.
Filing of application with the MCA for seamless approval.
3️⃣ Start Business with New Objectives
All it takes is 7 – 10 working days*
*Subject to Government processing time.
📅 Process for Changing Object Clause
Day 1
Expert consultation on the requirement and impact of changing your business objective.
Collection of necessary information and supporting documents.
Day 2 – 3
Drafting of Board and Shareholder Resolutions.
Drafting of the new Object Clause for the MoA.
Get documents reviewed, signed, and ready for submission.
Day 4 – 5
Preparation and filing of the application for approval of the new business activity with the MCA.
Day 5 onwards
Sit back while we track Government processing and provide updates.
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
When drafting the new object clause, ensure that it covers not only the core activity but also all ancillary or related activities. Additionally, the company's name must align with the updated object. If it no longer reflects the nature of business, the Registrar of Companies (RoC) may direct a name change.
The application to change the business activity must be filed with the MCA within 30 days of passing the shareholders’ resolution in the General Meeting. It's important to secure approval before initiating any new business activities.
The change becomes effective only upon approval from the RoC. Until such approval is received, the company is not permitted to operate under the proposed new object.
Yes. The object clause is a critical part of the Memorandum of Association (MoA) and must be altered accordingly. The revised MoA must be filed along with the application. In certain cases, the RoC may require the company to adopt a completely new set of MoA and Articles as per the Companies Act, 2013.
Not always. However, if the current name does not reflect the new business activities, the RoC may mandate a name change to align with the new objectives.
Yes, both procedures can be undertaken simultaneously, especially if the name change is necessitated by the change in business activity. However, since both require RoC approval, the timeline may vary depending on the processing time and feedback from the Registrar.