PROCEDURE FOR INCORPORATING A COMPANY
A company's Memorandum of Association or MOA
specifies the company's constitution and the extent of powers. The MOA is, in
simple words, the base on which the business is constructed. We will look at
the laws and regulations that regulate the MOA in this article. Often, we can
understand the contents of a company's Memorandum of Association.
Section 4
companies act 2013 deals with Fundamental Clauses of MOA, which includes
1. Name clause
2. Registered office clause
3. Objects clause
4. Liability clause
5. Capital clause
6. Association clause
1. Name Clause: The first clause of this chapter deals with suggesting a company's name. A corporation is an autonomous entity, an artificial person, with the right to sue and be punished, and for all of this, they need a name to be carried in the course of business, the name would be the representation of the company concerned.
2. Registered
Office Clause:
An address is a way to reach someone similarly. A company must also have a
registered office where it is possible to send all legal documents and notices.
The company must mention the name of the state where it establishes its
business and reestablishes its business within 30 days of incorporation.
3.Object Clause: The goal for
which the business is founded must be referred to in the association memorandum
It is one of the essential clauses and should be carefully written to list all
forms of companies that might be involved in the future by the corporation.
4. Liability Clause: The Corporation
must state the course of liability, whether limited or unlimited. The limited
shares of the company's MOA must declare that the liability of the company's
members is limited.
5. Capital Clause: This is only
true for companies which have share capital. The amount of approved capital
divided into shares in fixed quantities must be specified by these companies.
In addition, the names of each member and the number of shares against their
names must be specified.
6. Association Clause: The association
clause confirms the willingness of shareholders bound by the MOA to associate
and form a company. You need seven members to sign a MOA for a public
corporation and not less than two individuals for a private company's MOA. In
the presence of a witness, who may also add his signature, you must perform the
signing.
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