What is Change in Object Clause?

The Object Clause in the Memorandum of Association (MOA) defines the purpose and scope of a company’s operations. If a business wishes to diversify, expand, or pivot its core activities, it is legally required to alter the Object Clause of the MOA through a structured process.

This change reflects the company’s revised strategic direction and must be approved by shareholders, documented through a special resolution, and filed with the Registrar of Companies (ROC). It's essential for aligning legal documents with actual business functions and gaining investor confidence.

Whether you’re launching a new product line, entering a different sector, or transitioning your business model, changing the Object Clause ensures full compliance and supports future growth.

✅ Benefits of Changing the Object Clause
🎯 Written from the client’s perspective.

1️⃣ Legally aligns your MOA with new business operations
2️⃣ Enables smooth expansion into new sectors or industries
3️⃣ Builds trust with investors, partners, and regulatory bodies
4️⃣ Ensures ROC and MCA records are up to date
5️⃣ Reduces risk of legal non-compliance or fines
6️⃣ Helps in securing licenses for new business activities
7️⃣ Facilitates clear communication of your business vision to stakeholders

📑 Documents Required for Change in Object Clause
📂 List of essential documents with brief explanations.

1️⃣ 📄 Certificate of Incorporation – To verify the company’s legal existence
2️⃣ 📘 MOA & AOA – Existing documents to be updated
3️⃣ 📋 Board Resolution – To propose the object clause modification
4️⃣ 🧾 Special Resolution – Shareholder approval via general meeting
5️⃣ 📅 Notice of EGM – Intimation to members about the proposed change
6️⃣ 📑 Form MGT-14 – Filing with the ROC to register the special resolution

👤 Eligibility for Changing the Object Clause
🧾 Who can apply for this service?

Any company registered under the Companies Act, 2013, including:

• Private Limited Companies

• Public Limited Companies

• Section 8 Companies (with additional conditions)

• One Person Companies (OPC)

The company must have active compliance status and shareholder support to pass a special resolution.

⏱️ Timeline for Changing the Object Clause
⏳ Average duration and factors affecting turnaround.

• Preparation & Board Approval – 2–3 working days

• Notice Period for EGM – 21 clear days (as per legal requirement)

• Post-EGM Filing & Approval – 5–7 working days after EGM

Total time: Approximately 30 days, depending on document readiness and ROC workload.

❓ Frequently Asked Questions (FAQs) about Change in Object Clause

1️⃣ Why do companies change their object clause?
To update their legal purpose when starting new operations or entering new sectors.

2️⃣ Is shareholder approval mandatory for this change?
Yes, a special resolution passed at a general meeting is legally required.

3️⃣ Can a startup change its object clause before receiving funding?
Yes, and it is often done to align with investor expectations or pivot strategy.

4️⃣ Is Form MGT-14 compulsory?
Yes, it must be filed within 30 days of passing the special resolution.

5️⃣ Can Section 8 Companies change their object clause?
Yes, but they must get prior approval from the Regional Director before making changes.

6️⃣ Is the ROC approval automatic?
No, ROC reviews the filing and grants approval if all documents are in order.

7️⃣ What happens if I don’t update the MOA?
Your company may face legal risks or rejection of license applications due to non-alignment.

8️⃣ Can I add multiple new objects at once?
Yes, as long as they are clearly stated and consistent with regulatory norms.

9️⃣ Do I need to notify banks or partners after the change?
Yes, it’s recommended to update all stakeholders to maintain transparency.

🔟 Do you assist with drafting the new object clause?
Absolutely. We handle everything from drafting to ROC approval and documentation.