Change Business Activity
A Private Limited Company cannot conduct any business activity which is not mentioned in the object clause of the MOA. After Private Limited Company registration, if a company wants to start a new stream related to existing activity or a completely new activity, then it needs to alter or change the object clause in MOA. The Memorandum of Association (MOA) is a constitutional document of the company that helps to bring change in a business activity. When a company is incorporated, the objectives of business are defined in the main object clause of MOA. The objectives prescribed in the MOA define the scope of company’s principal business activities, within which it may operate. A company must have to undertake the activities, which are prescribed in the MOA only. While planning for an expansion or strategic changes, companies may require to undertake new activities or update business activity in MOA, which can be made through the consent of shareholders of the company and approval for the same by Ministry of Corporate Affairs.