NBFC: Change NBFC Name in India

Narendra Kumar

31 Dec, 2020

NBFC stands for Non-Banking Financial Companies incorporated under Companies Act, 1956/2013 regulated by Reserve Bank of India (RBI) through Reserve Bank of India Act, 1934, regulation, direction and circular. The question on this write up is the requirement and compliance framework of NBFC to be meeting for Change NBFC Name.

As NBFC is regulated by Reserve Bank of India (RBI), the most and foremost compliance to be done is to take No Objection Certificate (NOC) i.e. prior approval from RBI once NOC is granted to transact this thing then entire process to be carried are as per Companies Act, 2013.

The company required drafting application on the letterhead of company briefing the matter to be done subject to the approval of RBI^[1] and submit same with basic details like Certificate of Registration (CoR), Company Identification Number (CIN), PAN card copy and so on. It is basic information of corporate so that the details can be examined and the further process can be initiated. And it is not necessary the application for NOC be granted in first instances rather officer can ask for further information as he/she may right to do so.

Once permission or approval granted to do so then the rest remain in compliance with Ministry of Corporate Affairs (MCA)^[2] like:-

Passing Board Resolution in Board Meeting of Company to finalize at least a name out of six and authorize any director to apply to the registrar of the company for making a reservation of name.

At EGM do the following transactions:-

1. Pass Special Resolution for alteration of Name Clause of Memorandum of Association (MOA)
2. Pass Special Resolution for the alteration of Object Clause to keep the name in consonance with the objects of the company, if the name is indicative of an object and it is not included in MOA.
3. After EGM, file e-form MGT-14 along with a certified copy of the resolution and explanatory statement, altered MOA, and Article of Association (AOA)

After all this, the point to keep in mind is that the former name should also be there outside registered and every office and on all letterheads, billheads, etc. for a period of 2 years from a change of Name.

Public notice

The company needs to publish an advertisement to inform all the stakeholders in the English newspaper and in vernacular language newspaper where the registered office of the company is situated.

This is the process of how we can step into Change NBFC Name in existing law being enforced.

Furthermore, as the matter is serious to execute it is advisable to hire good exposure professional to expedite the process of change in name procedure. 

Read our article:Market Size of NBFC (Non-Banking Financial Companies) in India