What is a Memorandum of Association and how to draw it up in Dubai, UAE
Memorandum of Association (MoA) is a corporate legal document required to establish most companies in the United Arab Emirates. It describes the basic principles of the company, its structure and scope of operations. It acts as a binding agreement to which all stakeholders must adhere, providing clarity and accountability in business operations.
The MoA is publicly available under UAE law. Consequently, anyone entering into a contract with a company should be familiar with the contents of the memorandum.
To draft it, you will need several key documents, including:
- Copy of passport and visas for shareholders and directors.
- Proof of residence for shareholders.
- A copy of the company name reservation certificate.
- Details of the business activities of the business.
- Information about the legal address of the firm.
The Memorandum of Association includes the following items:
- Name. Here there may be subtleties depending on the chosen organizational-legal form. For example, if the company is a public limited liability company, then at the end of the name of the company should be “Limited”.
- The legal address where the registered office of the company will be located.
- The types of activities the organization plans to engage in.
- Liability clauses of the parties. Here should be specified the obligations of the company's participants, distribution of shares between the participants, specifics of their issue, etc. It is also useful to specify the costs and expenses associated with the settlement of the rights of participants and liquidation.
- The amount of the authorized capital stock, if applicable.
Before submitting the memorandum to the state authorities, it is necessary to check that the resulting document is divided into paragraphs, signed by all participants and the pages are numbered. The MoA must be notarized and sealed. Only then should it be sent to the Dubai Department of Economic Development for approval. Only after a positive response can you proceed with the licensing process.
Obtaining a memorandum of understanding in the UAE is an important step in setting up your business. Whether you are setting up a new company or expanding your operations, an MOA ensures that your business structure is legally recognized and your operations comply with local regulations. The document provides the legal framework governing the company and defines the rights, duties and responsibilities of the participants.
Openbiz's business consultants can ensure that your Memorandum of Association complies with all legal regulations and addresses your specific business needs. Sign up for a free consultation to learn more about all the steps involved in starting a company and including drafting a Memorandum of Association in Dubai.
Openbiz's business consultants can ensure that your Memorandum of Association complies with all legal regulations and addresses your specific business needs. Sign up for a free consultation to learn more about all the steps involved in starting a company and including drafting a Memorandum of Association in Dubai.
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