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Object Change In Company

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Overview

A company’s object clause defines its business activities and operational scope. If a company wants to expand, modify, or restrict its business objectives, it must amend its Memorandum of Association (MOA) by filing Form MGT-14 with the Registrar of Companies (ROC). Company Mitra simplifies the object change process, ensuring seamless documentation, legal compliance, and approval.Changing the object clause ensures that a company operates legally within its defined scope, preventing any regulatory issues. Company Mitra simplifies the object change process, ensuring seamless documentation, legal compliance, and timely ROC approval. Whether you want to explore new business areas, pivot to a different industry, or refine your existing operations, we make the transition hassle-free.

Requirement

Board & shareholder approval for modifying the object clause.
Filing of Form MGT-14 with supporting documents.
MOA amendment reflecting the revised business objectives.

Benefits

Legally allows expansion or diversification of business activities.
Ensures compliance with Companies Act, 2013.
Prevents legal disputes by maintaining transparent company records.
Helps in securing investments & government approvals.

Document Required

Board Resolution approving the object change.
Special Resolution passed in the general meeting.
Altered Memorandum of Association (MOA).
Copy of Notice & Explanatory Statement.
Form MGT-14 duly filled and signed.

Professional Fees

~~₹5,000.00~~ ₹2,500.00

Additional Cost

Process time

⏳The process usually takes 7-10 working days after filing with the ROC.

Steps

⏬ Consultation: Discuss the object change requirements with Company Mitra.
⏬ Board Resolution: Draft and pass a Board Resolution approving the modification.
⏬ Shareholder Approval: Conduct a General Meeting for a Special Resolution.
⏬ MOA Amendment: Update the MOA with the new object clause.
⏬ Filing with ROC: Submit Form MGT-14 for approval.
⏬ Approval Confirmation: Receive ROC approval for object change.

FAQ

👉 When is an object clause modification required?
When a company wishes to expand, modify, or restrict its business activities.

👉 Can a company operate outside its object clause?
No, companies must operate within their approved business scope as per the MOA.

👉 What is the penalty for not updating the object clause?
Operating outside the approved objects can lead to legal action & penalties.

👉 How long does it take to change the object clause?
The entire process usually takes 7-10 working days.

👉 Do shareholders need to approve the object change?
Yes, a Special Resolution in a general meeting is mandatory.

👉 Is government approval required for object changes?
For certain industries (e.g., banking, insurance), additional approvals may be needed.

👉 Can Company Mitra assist with the ROC filing?
Yes, Company Mitra handles the complete process from documentation to approval.

👉 Will the CIN of the company change after object modification?
No, the Company Identification Number (CIN) remains the same.

👉 What happens if ROC rejects Form MGT-14?
It must be revised and resubmitted with correct details.

👉 Can an object clause be modified multiple times?
Yes, but each modification requires a new board & shareholder resolution.

👉 What happens if the MOA is not updated after the object change?
The company may face compliance issues and operational restrictions.

Compliances

✅ Compliance

📌 Compliance Requirement	📅 Due Date	📖 Remarks
📜 Board Resolution for Object Change	Before shareholder meeting 📆	Required to initiate process
📑 Shareholder Special Resolution	Before filing with ROC 📌	Mandatory approval step
📊 Filing of Form MGT-14	Within 30 days of resolution 📤	Required for ROC approval
📝 Update MOA & Notify Stakeholders	After ROC approval 📌	Ensure records are updated

Penalties

⚠️ Penalty & Interest

🚨 Non-Compliance Issue	❌ Penalty & Interest	⚖️ Consequences
📑 Failure to File Form MGT-14	₹100 per day 🏦	Until compliance is met
📝 Not Updating MOA	₹1,00,000 fine 🚔	Legal action against company
📊 Operating Outside Approved Objects	Business restrictions 🚔	ROC may reject filings
💰 Incorrect Information in ROC Records	Legal scrutiny 🏛️	May affect future filings & approvals