The Memorandum of Association (MOA) is a registered document containing all the legal data essentially required for the incorporation of a company and available to the public. Section 4 of the Companies Act 2013 describes the 5 clauses that must be included in the document. The preparation of a Memorandum is a legal requirement for limited liability companies only.
Under the name clause, mention the legal name of the business as accepted by MCA. You are allowed to register a business name only if it generally does not bear any parallels with the name of a current business. The name of your company must end with the word “Limited” in the case of a public limited company or “Private Limited” in the case of a private limited company. The location clause requires you to mention the State in which the registered office of the business is situated. You will need to keep all the business registers in this office in addition to using the office in managing all the outgoing and incoming communication.
The object clause (Section 4(1)(c)) summarizes the primary goals for creating the company. Additionally, you need to state additional matters, which are required to facilitate the accomplishment of the main objectives. The goals should be free from any provisions or statements that contravene laws or public good.
The liability clause requires you to say the extent to which investors of the company are responsible for the debt obligations of the company in the case of the business breaking up. You should show that shareholders are liable only their shareholding (limited by shares) or to their commitment to contribute to the liabilities and dissolution costs upon liquidation of a company (limited by guarantee). The capital clause expresses the company's approved share capital, the various classifications of shares and the nominal value of the shares. This clause also provides the details of the number of shares each subscriber of the Memorandum of Association has agreed to take.
With the introduction of One Person Company concept, the Companies Act has also introduced a sixth clause related to the nominee of the business. Whether you are registering a new company or converting from an existing form, Eurion Constellation will get you started quickly and in the most hassle-free way. We are a wide scale service provider, assisting from business planning and strategy formation to funding and legal matters. Please visit our website for details about our full line of services or write to us.
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