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Key Benefits

  • Facilitates seamless business diversification by legally allowing the company to enter into entirely new industries or service lines.
  • Enables the company to pivot its core operations in response to shifting market trends and consumer demands.
  • Improves the company's "Bankability" by aligning its legal objectives with the specific requirements of lenders and financial institutions.
  • Ensures statutory compliance when the company’s actual business activities differ from the original "Main Objects" filed at incorporation.
  • Enhances eligibility for specialized government licenses, subsidies, and industry-specific tenders that require a clearly defined object clause.
  • Protects the company from Ultra Vires acts, ensuring that all business contracts and agreements are legally enforceable.
  • Signals strategic growth and modernization to stakeholders, investors, and potential business partners.
  • Provides a solid legal foundation for mergers, acquisitions, or joint ventures in complementary business sectors.

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Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

A Change in Object Clause is a fundamental alteration to a company's constitution, specifically the Memorandum of Association (MoA). This event is governed by Section 13 of the Companies Act, 2013. The "trigger" occurs when the Board of Directors identifies that the current "Main Objects" do not cover the company's proposed new business activities or when the company intends to abandon existing activities in favor of more profitable ventures.

In the 2026 MCA V3 regulatory ecosystem, the process is strictly digital. Companies no longer submit physical copies of the amended MoA; instead, they must update the e-MOA (INC-33). A critical requirement for 2026 is that if the company has raised funds from the public through a prospectus and has any unutilized money, it must justify the change in objects through a special resolution passed via postal ballot and provide an "exit option" to dissenting shareholders.

For the FY 2025–26 cycle, the change must be synchronized with the company's name. If the new objects are significantly different from the old ones, the Registrar of Companies (ROC) may require a change in the company name to reflect the new business activity. Additionally, the Audit Trail (Edit Log) software must record the exact moment the shareholders approved the shift in business direction. This prevents the backdating of resolutions to cover activities already started without legal authorization.

Document Required

Documents
  • 1 Permanent Account Number (PAN) Card of the Company.
  • 2 Aadhaar Card of the Authorized Director
  • 3 PAN Card of the Authorized Director.
  • 4 Certified Copy of the Special Resolution passed at the EGM.
  • 5 Notice of the Extraordinary General Meeting (EGM) with the Explanatory Statement.
  • 6 Altered Memorandum of Association (MoA) featuring the new Object Clause.
  • 7 Minutes of the Board Meeting that proposed the change.
  • 8 Attendance Sheet of the members who attended the EGM.
  • 9 Declaration from Directors that the change is not detrimental to creditors.

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Pre-Event Procedures

Step Name Short Description Authority
Board Resolution Approval of the new objects and authorizing the convening of an EGM. Board of Directors
EGM Notice Issuing a 21-day clear notice to all members, directors, and auditors. Company Secretary/Director
Special Resolution Approval of the object clause alteration by 75% majority. Shareholders
Postal Ballot Mandatory only if the company has unutilized funds from a public issue. Shareholders

Filing Requirements

Form Name Trigger/Description Countdown Deadline
MGT-14 Filing the Special Resolution for alteration of the MoA (Section 13). 30 Days from EGM
INC-24 Required only if the company name is also changing to suit the new objects. 60 Days from Name Approval
Master Data Update The ROC updates the company's business category on the MCA portal. Post-MGT-14 Approval

Penalty and Non-compliance Risk

Daily Monetary Penalty for late filing of MGT-14
Acts deemed "Ultra Vires" and legally unenforceable
Rejection of Tenders or Bank Loan applications
Deactivation of Director Identification Number (DIN)
Prosecution for misrepresentation of business activities
Personal Liability of Directors for unauthorized business dealings
Suspension of GST benefits for mismatched business profiles

FAQs

Can we start the new business before filing MGT-14?

No, any activity outside the current MoA is "Ultra Vires" and the company cannot legally enter into contracts for it.

Is a Special Resolution always mandatory?
What if our company name doesn't match the new objects?
Is a newspaper advertisement required?
What is e-MOA (INC-33)?
Does the Object Clause change affect existing contracts?
ow many "Main Objects" can a company have?
What is the "Explanatory Statement"?
How much time does the ROC take to approve?

Seamless Compliance for Your Business

Focus on growing your business while we handle the complexities of statutory compliance. From GST filing to Annual Audits, our automated systems ensure you never miss a deadline.

CA
  • GST Filing & Reconciliation
  • Income Tax Returns (ITR)
  • TDS/TCS Returns
  • Statutory & Tax Audit
  • ROC Company Filings

What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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