A Company Can Change Its Name
A company has a name, just like people do. This name is how others know the company. If the company wants, it can change its name. But it must follow special rules made by the government.
Why a Company May Change Its Name
- The company has started doing a different type of work (business).
- The company wants the name to match its brand better.
- The government told the company to change its name.
Rules Before Changing the Company Name
Before a company can change its name, it must follow these rules:
- The company can’t change its name too often. At least 1 year must pass since the last time the name was changed.
- The company’s new business work (that matches the new name) must be big.
- It should give at least 50% of the company’s money in the last year, or
- The company should have spent 50% of its money (assets) on the new business work.
- The new name and the old name must be shown on the stock exchange website (where the company’s shares are sold) for 1 full year after the name is changed.