The Memorandum of Association (MOA) is the supreme document that contains all vital information related to the newly forming company and its activities. While incorporating a company you have to submit the Memorandum of Association. You cannot register a company without the MOU document.
Are you planning to start a company? One should know what MOU is and the details to be included in it before registering a company with the Registrar of Companies, or ROC. It should contain scope and limits of the company, other than details about creditors, investors and shareholders. A memorandum is otherwise called the chart of the company which will give details about the activities that a company is going to carry out in the coming years.
The MOA is accessible to the public. Like constitution of a country, MOA acts as a constitution of the company. It will give information on how a company is going to perform and how the company is going to be known in the society. The MOA of a company should specify six conditions.
Name clause – A company can register only if it has a valid name. A company should select a name which is unique and complements the business activities. Any similarities with existing company names will be rejected. Make sure that the company name that you are planning to select for your company is not having any resemblance with other registered company name.
Registered office clause – In this clause you have to mention the registered physical location of the company. In a registered physical location all the vital documents related to the functioning of the company should be present. All the incoming and outgoing communications on the core activities of the company should be made from this office.
Objective clause – As the name suggests in this clause you have to specify the objective of the business. The objectives should be related with the shareholders and the core funding. You should also specify ancillary objectives of the company. Ancillary objectives are those that are required to support the main objectives.
Capital clause – In this clause you have to specify the company’s total capital investment. Shareholder will not be investing equal amounts to the core fund. In this capital clause the amount that each shareholder is going to invest should be mentioned. It should also mention other areas of investment.
Liability clause – Here the company should mention the debt liability of each shareholder in case of dissolution of the company. During the liquidation time each shareholder has to bear the burden of the debt. The percentage of it should be mentioned in the liability clause.
Subscription clause – In this clause one has to mention the details of the shareholders, number of share own by each and the witness.
All limited companies have to submit memorandum of Association for registering the company. If you have plans for business setup in uae, then have to submit the MOA with the Registrar of Companies in UAE. There are many business consultants to help you in dubai business setup. A business consultant will assist you in registering your company and operate it in a successful way.
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