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Microlesson · 5-min read

Effect of Change of Name & Labelling Requirement

# Effect of Change of Name

## Continuity of Entity

  • A change of name does NOT affect any rights and obligations of the company.
  • Legal proceedings commenced under the old name continue validly.
  • However, where the new name has been registered, the commencement of fresh legal proceedings in the former name is NOT competent.
  • In spite of a change in name, the entity of the company continues — the company is neither dissolved nor does a new company come into existence.

## Display of Former Name (Last 2 Years Rule)

Where a company has changed its name during the last 2 years, it shall paint or affix or print, along with its (current) name, the former name(s) so changed during the last 2 years.

This is meant to keep stakeholders informed about the recent name history of the company.

## Summary

IssueEffect
Rights & obligationsUnaffected
Pending legal proceedings in old nameContinue validly
Fresh proceedings in old name (after registration of new name)Not competent
Identity of companySame — entity continues
Display of former nameRequired for 2 years from change

Worked example

### Example 1

Example: ABC Ltd. changed its name to XYZ Ltd. on 1.1.2026. A suit was filed against ABC Ltd. on 1.12.2025 (before name change). Can the suit continue?

Answer: Yes. The change of name does not affect legal proceedings already commenced under the old name. The entity remains the same.

### Example 2

Example: XYZ Ltd. (formerly ABC Ltd., changed on 1.1.2026) wants to file a new suit against a debtor on 1.6.2026. Can it file in the name 'ABC Ltd.'?

Answer: No. Once the new name has been registered, commencing fresh legal proceedings in the former name is not competent. Suit must be filed as 'XYZ Ltd.'.

### Example 3

Example: A company that changed its name 18 months ago — must it display the former name on its letterheads?

Answer: Yes. Since the change occurred within the last 2 years, the company must paint/affix/print the former name along with its current name.

⚠️ Common exam mistakes

  • Believing a change of name dissolves the old company and creates a new one — it does not.
  • Continuing to file fresh suits in the old name after registration of new name.
  • Forgetting the 2-year requirement to display the former name on company documents/signboards.
Reference: Section 13 / Section 16 — The Companies Act, 2013
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