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How can I add a new business into my limited company?

Submitted by LegalWizin on Tue, 01/21/2020 - 12:39

New business activities can be added through chnage in Object Clause of MoA.

What is Object clause of MoA?
The object clause of MoA defines the activities to be carried on by the company and outlines the scope of business. A company cannot indulge in activities other than those provided in object clause. The activities carried on outside the scope drawn by MoA are called ultra-virus activities. Also, to limit and regulate the company’s activities, the MoA and objects of the company are verified and approved while Company Registration. Here, under object clause, the company must provide all the activities it will engage after its incorporation.

The process of change in object clause will be simple. The concerned professional will draft the new object clause and once it is finalised. The same is to be adopted in General Meeting after Board Meeting. The modified MoA will be filed with Registrar of Companies for approval and records. The modified clause will only be effective once the RoC approve the application.

However, an attention to one crucial aspect is necessary while carrying the change, which is laid down below in form of excerpt from a blog.

However, while company registration, the most frequent question asked in “Whether one can register a company for multiple businesses?”

The answer is yes, however it depends whether the activities are related or not. The company may carry on more than one activity at the consent of the member. All such activities are required to be listed under the object clause as specified above. In a practical scenario, many promoters wish to put all different activities under one roof, which may be possible to a certain extent. Here, we are providing a true image of whether different business activities can be registered under one company.

When the activities are listed with the reference to business perspective and growth can be performed. Activities ancillary to the main business objective are allowed to be carried on under the same roof and are not a point of objection.

Source: Is it allowed to run multiple businesses in one company?

For expert’s assistance for change of business activity, feel free to get in touch with the Company Secretaries at LegalWiz.in on 1800–313–4151.

If you have any query, feel free to drop it in the comment box.