Memorandum of Association UAE


The United Arab Emirates extends a warm welcome to investors. It is one of the most investor-friendly countries in the world, and an increasing number of people are moving there to pursue their business aspirations. The required document for forming a corporation in the United Arab Emirates is a Memorandum of Association (MOA). Before you continue with the remaining processes, it must be attested by the appropriate authorities in both the UAE and the place of origin.

1. What is Memorandum of Association?

All founding members or partners who agree to the creation of the company must sign a Memorandum of Association (MOA), a sort of corporate document. All shareholders must sign the MOA in order to confirm that they agree with the company’s incorporation under UAE law.

In the United Arab Emirates, a memorandum of understanding must be prepared in the same format as a corporation or association’s bylaws or other governing documents. It is advised that you get in touch with us at BACT for the help of a legal drafting team in the UAE so that you can comprehend the form that the memorandum specifies. Along with the company setup submission, the company article must include a compliance statement and be sent to the appropriate authority.

2. The Contents of a Memorandum of Association

A Memorandum of Association (MOA) must have the following details and provisions in accordance with UAE law:

• Name Clause, to;

• Object Clause, to;

• Situation Clause, to;

• Capital Clause, to;

• Liability Clause.

1. Name clause 

The company’s name is mentioned in the sentence and is suffixed correctly.

2. Object clause 

The category provides information about the goods that a business sells. If a business wants to expand and add more products, this can be modified.

3. Situation clause 

The provision details the company’s territorial limitations and states that it will only operate in the United Arab Emirates.

4. Capital clause 

This section will outline the company’s stock, the total number of registered shares, and any prospective share splits that may occur. The corporation’s only owner is present if there is only one proprietor.

5. Liability clause 

The clause addresses the owners’ or shareholders’ obligations regardless of whether the corporation is unconstrained, limited, or owned by the government. A shareholder’s responsibility is the amount (unpaid) that is related to how many shares each member holds. This is true if the corporation has a limited number of shares. If a firm is constrained by a warranty, liability extends to the sum that each shareholder would invest. If the business closes while the owners are still stockholders or a year after they depart, this may include the company’s assets. When they became shareholders, individuals became liable for the company’s duties and debts. Additionally, shareholders are accountable for dispersing donations in line with applicable laws, paying any fines or fees incurred during the company’s dissolution process.

3. Name Instructions in the Memorandum of Association

In a MOA, the firm name must follow the guidelines listed below:

•The name shouldn’t be similar to or identical to the brand name of an existing company;

• The name must be unique and unclaimed by any other businesses;

• The name cannot be derogatory or unfavorable, per UAE legislation;

• There are no words in the name that suggest a relationship with or endorsement from the government.

4. What are Articles of Association?

The 2015 version of the UAE Company Act defines “books” as the original or copies of the articles of association that have been registered with the appropriate regulatory bodies and adhere to its rules. As was previously said, AoAs are documents that include rules or laws that govern how an organisation is managed.

5. Provisions of Articles of Association for Retrenchment

The documents include entrenchment rules that allow for the modification of fundamental clauses. Anybody can create an AoA’s rules:

6. Public Company

utilizing a unique resolution;

private business

when settled upon by all parties involved and revised

7. What’s the Variance Between an Articles of Association and a Memorandum of Association?

Although a firm can be governed by any type of legal document, its memorandum of association contains vital details. The business’s own policies are contained in the AoA, on the other hand. The organisation is built upon the basis of a MOA. The region is a collection of regulations that keep the company operating efficiently. Before a corporation can be granted a license, all required documentation must be presented for registration.

8. Here are the primary divergent between MOA and AoA

• The memorandum of association outlines the business’s objectives and driving forces, whereas the articles of association provide operating principles.

• The UAE Company Act is secondary to the memorandum of association, which is subservient to the articles of association.

• The MOA cannot be modified after the event, and it should not be. The AoA could be modified.

• There are six primary clauses in the MOA, and an AoA is prepared if the organisation requests it.

• A memorandum of association is required for all businesses.

• The Memorandum of Association may be changed by a special resolution adopted by the Annual General Meeting and with the approval of the President. Following the passage of a special resolution at an annual general meeting, changes within an AoA are feasible.

Both are crucial business documents, necessitating the necessity for legal drafting attorneys in the UAE. Using a qualified attorney’s services will help ensure that legal documents are carefully drafted. Never hesitate to get in touch with our technical experts, who will help you at every step of the way as you design a MOA and AOA for your business.

Binding Force of Memorandum and Articles

1. Members obligated to the business

All members are obligated to abide by the conditions of the articles and memorandum.

2. Company obligated to members

Members of a corporation are bound by whatever is stated in the firm’s memorandum and articles of association.

3. Member obligated to member

Members of a corporation are bound by whatever is stated in the firm’s memorandum and articles of association.

4. Whether a company or member bound to outsiders?

The memoranda or articles do not give outsiders any contractual privileges against the organisation or its owners, notwithstanding the fact that the identity of the outsiders is included in the documents.

The memoranda or articles do not give outsiders any contractual privileges against the organisation or its owners, notwithstanding the fact that the identity of the outsiders is included in the documents.

5. Whether directors are protected by the Articles of Incorporation?

Yes, the articles of incorporation provide the company’s directors authority, subject to any limitations set forth in the articles.

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