With the use of the Memorandum of Association, the government implemented best practices for companies in the country. Furthermore, it is an effort to ensure the rights of all partners in a business in the UAE. Likewise, with the regulations and rules, including this document, companies can succeed for operations in the country.
In this article, you will get a broad overview of what is Memorandum of Association and its legal requirements. In the same way, what are its objectives and legal implications established by law.
First, let us establish what is Memorandum of Association or MoA? It is a document that describes the operations of a company. Likewise, you must write it in Arabic and must be certified by a notary for it to be valid. In this case, in the emirate, the Arabic translation will be a priority for the MOA if it is published in another language.
The MOA is important because it controls the interaction with external parties. In addition, it is an important requirement for companies that want to register as private or LLC. In this case, the MOA contains the regulations that your company must follow later. Next, you will learn in detail the important aspects of the MOA:
The MOA is one of the most important legal requirements for setting up a company in the UAE.
The Memorandum of Association is the document that will control the activities of your company. In the same way, it is created immediately when the company starts. Likewise, it may be modified if the company expands.
The Memorandum of Association indicates the level of responsibility of the shareholders or members of the company, that is, whether it is limited, unlimited, or if it belongs to the government. It will also indicate the unpaid amount that will correspond to each partner if they have limited shares. Likewise, if your company has guarantee limits, the liability will be the amount of the shareholder contribution.
In this case, it could include the assets of your company if it closes when the shareholders are active members or after one year of retirement. In addition, partners are responsible for the cost of liabilities and debts that their company accumulates while being members. Moreover, shareholders must settle the costs and charges in the procedure for liquidating the alliance.
The MoA UAE is in charge of structuring the company, as well as its governance. Likewise, it will have the distribution of the shares, name of the shareholders, name of the company, office address, and positions.
The MoA protects the interests of shareholders, including the rights and powers they have in their company. In the same way, creditors or any other person related to your company may benefit. Additionally, with the information provided by the memorandum, potential shareholders will have a better overview to consider when investing in your business.
The MoA is essentially the basis for structuring the company, from its formation to its registration. Also, it will establish the objectives for which your company is established.
The UAE has a specific format for the memorandum; within the format, it will contain the following information:
In the same way, to alter a memorandum there must be specific approval from a general assembly one year after the government approved it. Instead, you will be able to modify an AoA with the approval of the annual spatial meeting in your company.
A Memorandum of Association Dubai is necessary because it represents the constitution of your business group, serving as a constitution. It will also have to include all the information on the shareholders, board of directors, and policies. Also, it must contain the policies and everything related to security, among others.
Furthermore, when starting your business in the UAE, you will have to submit the necessary documents along with the MOA. Furthermore, UAE federal law states that all documents must be certified, so the MoA will be no exception. In this regard, if the memorandum is not certified, Emirati law will consider it invalid.
At the same time, if you do not validate the MoA, your application for the business license will also not proceed. Likewise, for UAE law, within the procedure for establishing a company, there is the presentation of the memorandum of its organization. Furthermore, to market your goods and services, it will be necessary to present the MOA memorandum.
You should know in advance what should be included in the memorandum. Below, you will see what you will need to have on hand when writing the memorandum to establish your business:
Additionally, the documentation must be published when it has met all the requirements of the MOA. Similarly, it must be delivered to creditors, shareholders, and all interested parties. In this case, it will be the commitment to inform the policies that the line firm will implement.
Likewise, there is a significant group of Memorandum of Association Dubai writing services available to you. These types of services are of considerable importance for the operations and development of your company. Therefore, you should be careful to choose the best one because some are not legal.
On the other hand, there are other writing service companies that will offer you quality services not only for this but for other legal documents. In the same way, you can agree with them on the period for writing the MOA through a conversation. One of the renowned companies is Notary Public Dubai, recognized for its extensive legal drafting and notarization services for documents of all types.
Your MOA will be effective upon registration with the Commercial Registry of the Economic Department of Dubai or the emirate where you will start your business. Also, if the company is in a free zone, you will have to register it with the particular authorities of the area.
In both cases, it is the Bora that indicates these modalities for the registration of the memorandum of any company that begins operations. Equally, you will have to record it completely, because if you only record a part, that is what will be valid for the reader. That is, when you modify the previous memorandum due to an expansion or change if it is not registered, the amendment is not valid.
In the same way, no company may fail to comply with the legal provisions imposed by the government for the memorandum. In this case, it will be considered a breach of the agreement guidelines.
The Emirati government provides that if your company develops, expands, or changes its business operations, you must modify the MOA. Hence, to reflect these changes, according to the legal requirements we mentioned above, the amendment will need to be certified to be valid.
In this case, if your business is being set up by a business training professional, they will be the one to help you with the writing and certification of your MOA. Likewise, if you are an individual, you can apply to a law firm in the United Arab Emirates. Also, you will be able to acquire it through registered public relations services or a typing center.
The Memorandum of Association is a document required to start a business in the Emirates. Furthermore, to be validated, it will have to be certified by an Emirati notary and if you need to modify it, you will have to certify the changes. However, if you do all this through a certified professional, the entire process will be easier.
Also, if you want to do it through professionals, you can contact us and you will immediately get the help you need.
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