company changed the name like x infrastructure corporation ltd.for do multiple object can co. do it mul. obj?

Question

Present main object of the company to do business i.e textile , spinning and weaving business now company expand our business to do real estate business. To do real estate business its required to change the name of the compant so company applied the name x infrastructure corporation ltd. Can this name is sufficent for company to do multiple object i.e textile and infrastructure business.

Answer 1

As I'm not certain which country you are located in, I will provide the "generic" answer which I believe would apply across the board.

Any time a company that is doiing one form of business, branches out to do another as well, if the branch is related to the present objectives of the company, there is no need to change the main company name.

However, the extreme leap to a completely different business operation such as is the case here, would require either a request to the Governmental office that is responsible for handling business registrations in your Country. The company need not change their name to accompany the addition of this new section of business, rather it is wiser to either provide a new name for the new area of business and link it to the current business by stating "A division of (the Original Company's Name).

Otherwise, a completely new entity itself should be created for the Realty business. Changing the name of this company in mid stride may be less expensive to achieve however, if it has been in operation for awhile, there will be the matter of changing the Company's building sign (if applicable), a major dollar grabber in itself. The name will have to be reflected in business materials (business cards, letter head, flyers, brochures, purchase orders, invoices etc).

Further, the cost to notify all current customers of the name change would be a courtesy and recommended. Therefore, the cost to change the name alone is still compounded by the requirements to ensure as smooth a transition as possible so as not to lose any current clients/suppliers.

It would be more beneficial and less confusing if the company where to operate under one umbrella/entity that controls all companies. For example, a Company my husband is part owner of is actually under the ownership of a Holding Company. This Holding Company is the umbrella Corporation for 3 businesses all operating under their own unique Names, carrying on their own line of business and conducting their own accounting procedures, all separate from the other 2 businesses.

By doing things the way in which this Company in question is doing it, will cause a logistics nightmare eventually, unless the owners are able to maintain two separate paper trails/accounting practices accurately and without trouble.

Personally, as a business owner with a husband one as well, I would want to be extremely certain that a simple change in my current company's name didn't lead to far more problems than necessary. The real estate business in my opinion should be a separate name all together, although working from the same location could be possible for awhile provided there was a clear division of the two businesses here as well. The company should look into creating an umbrella Corporation that controls all aspects of both companies i.e. shares, shareholders, decisions regarding expansions etc. But it should work in the background while the two businesses work as separate entities.

Good luck with this and whatever role you play in it.