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One of the most essential document in the formation of a company is Memorandum of Association or MoA. It shows the main objectives of the company and its goals in the long term.
The MoA regulates the incorporated company activities such that it can undertake activities that are mentioned in MoA. The number of persons signing the form varies as per the type of company (seven in case of public company while two members for private). The main clauses of MoA can be as follows
1. Name: It should include the name of the company that has been approved by registrar of companies.
2. Registered Office: The clause mentions address and name of company in which it is situated. Name giving is not mandatory, but it is essential to submit company name within 30 days of its incorporation.
3. Objects clause: Most important clause while filling MoA is it defines the objectives for which a company is raised. Any activity cannot be undertaken that are not stated in objects clause. There are two types of object clause namely, main objects and other objects.
4. Liability clause: This clause is all about liability of each shareholder as per amount invested by them or the shares they own.
5. Capital Clause: It refers to the clause of raising authorised capital by issuing of shares
6. Association clause: It contains the statement by those who sign the MoA and who accept MoA and also the consent of buying qualification shares.