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A Memorandum, often known as a company’s constitution or charter, is a crucial basic document for a company’s establishment. On the registration and foundation of a business, the “Memorandum of Association” is a document that must be drafted and approved by the original members. It contains information such as the names of the initial shareholders, the company’s name, the state in which it is located, the company’s purpose for being formed, the permitted capital, and the members’ responsibility. This article serves as a guide for all businesses since a Memorandum of Agreement (MOA) is a must-have. What is Memorandum of Association MoA – Contents and Meaning of MoA.

 

Memorandum subscription

The founding members of an organization must subscribe their names to the Memorandum of Incorporation, which maybe 7 or more in the case of a public limited company, two or more in the case of a private business, and one in the case of a One Person Company. Subscribing is the process of signing or stamping a document to indicate acceptance or attestation of its contents.

 

Who is eligible to subscribe?

The Memorandum is open to the following individuals:

• Individuals from other countries and non-resident Indians Minors (with the help of a natural guardian)
• Companies formed under the Companies Act
• Companies incorporated outside of India
• Limited Liability Partnership Body corporate formed under an Act of Parliament or
• State Legislature Body corporate incorporated under an Act of Parliament or State Legislature

 

Membership in MOA

Every subscriber must sign his or her name, and a witness must attest to it. The witness is required to write his or her name, residence, description, and employment on a piece of paper. If the subscriber’s or witness’ signature is in a language other than English, an affidavit must be produced stating that the signature is the subscriber’s or witness’ real signature. By providing a power of attorney to the relevant person, the subscriber may empower another individual to attach the signature in specific circumstances. In the presence of at least one witness, the subscriber or agent should additionally write his or her name, residence, description, and employment. What is Memorandum of Association MoA – Contents and Meaning of MoA.

FAQ

What is a memorandum of association What are its contents?

According to Rule 16 of the Companies (Incorporation) Rules, 2014, every subscriber to the Memorandum must provide the following information with the Registrar:

• Affixed and scanned with MOA and AOA are your name including surname and family name and a current photograph.
• The father’s or mother’s name.
• Date and time of birth
• Date and place of birth
• Qualification in terms of education.
• Permanent account number for income taxes.
• Permanent and up-to-date address
• Please provide your email address.
• Please include your phone number.
• Number to fax (optional).
• Two forms of identification, one of which must be a PAN card.
• Any proof of residence that is less than two months old.
• If the subscriber is a foreign national, proof of nationality is required.
• If the subscriber is a current director or promoter of an organization, the organization’s name and corporate identity number, as well as the subscriber’s designation.

If the Memorandum’s subscriber is a corporation, the following information must be recorded with the registrar:

• The company’s corporate identity number or the body corporate’s registration number.
• The global location number is used to identify the legal entity’s location. (Optional)
• The name of the corporate body.
• The business’s registered address.
• Please provide your email address.
• A certified genuine copy of the Board resolution authorizing the body corporate to subscribe to the proposed company’s memorandum of association and to invest in the proposed business if the body corporate is a corporation. The number of shares to be subscribed by the body corporate, as well as the name, address, and designation of the authorized person, should all be included in the particulars.
• A certified copy of the agreed resolution, the number of shares planned to be subscribed in the body corporate, and the name of the approved partner must be provided if the body corporate is a limited liability partnership or partnership company.

 

How do you write a memorandum of association?

Name clause: The name of the firm is specified in this phrase. The company’s name should not be the same as that of another business. If it’s a private corporation, the word ‘Private Limited’ should be included at the end. In the event of a public corporation, the word “Limited” should be added to the end of its name. For instance, ABC Private Limited in the case of a private firm and ABC Ltd in the event of a public corporation.

The Registered Office Clause: gives the name of the state in which the company’s registered office is located. This aids in determining the Registrar of Companies’ jurisdiction. Within 30 days of the company’s registration or start, the company must notify the Registrar of Companies of the location of its registered office.

Object Clause: This clause specifies the purpose for which the firm was established. The following three subcategories can be found within the objectives:

The major goal is to state the company’s principal business.

Incidental Objectives: These are the goals that aren’t directly related to the company’s core goals.

Other goals: Any other goals that the firm may pursue that are not covered in (a) and (b) above (b)

The liability clause: establishes the company’s members’ responsibilities. In an unlimited corporation, the members’ responsibility is limitless, but in a business limited by shares, the members’ liability is limited by the amount unpaid on their share. The members’ liability in a corporation limited by guarantee is limited by the amount each member has committed to contribute.

Capital Clause: This clause specifies the maximum amount of capital that a corporation can raise, often known as the authorized or nominal capital. This also shows how such a large sum of money is divided into a predetermined number of shares.

 

What is a memorandum of association in India?

The Memorandum of Association (MOA) is a legal document that outlines the scope of the company’s commercial operations as well as information about the company’s holdings. The Memorandum of Agreement is a document that is created as part of the company registration process. It is sometimes referred to as the company’s charter, while other times it is simply referred to as a memorandum. The MOA must be submitted as a ROC Compliance in most countries, which contains articles such as MGT-7 and AOC-4 in India. The Ministry of Corporate Affairs has launched online filing for business registration to make company formation in India more compliant.

 

What are the purposes of a memorandum of association?

The Memorandum of Association (MoA) is a legal document that establishes the scope and extent of a company’s commercial activity. The firm can carry out the business operations listed in the Memorandum of Association. You will need to make revisions to the memorandum if you want to expand your company operations into other areas of the market.

 

A Memorandum of Association is a legal document that limited liability corporations (LLCs) must have. Private Limited Companies and Limited Liability Partnerships are examples of limited liability companies (LLP). The MOA is a document that describes the company’s relationship with its stockholders. The MOA is a public document, which means that anybody who wants to access it can do so under the Right to Information Act. The name of the business, the physical address of the registered office, the names of the shareholders, and the share distribution are all described in the MoA.

 

Is a memorandum of association a contract?

The Memorandum of Association is a legal document that explains why the firm was founded. It establishes the company’s authority and the circumstances under which it works. It is a document that comprises all of a company’s laws and regulations regarding its interactions with the outside world. What is Memorandum of Association MoA – Contents and Meaning of MoA.