Goseeko blog

What if Memorandum of Association?

by Kusum Joshi

Memorandum of Association is a legal document that must be submitted to the company’s registration body at time of establishment. This is often referred to as a memorandum and consists of the basic conditions under which a company operates.

The Association Memorandum of Understanding is the most important document that needs to be prepared with the utmost care.

The Memorandum of Understanding of the Association of Companies is an important corporate document in India. In simple words it is a memorandum.

This is a supplement to the Articles of Incorporation that regulates the company’s diplomacy and covers the company’s internal constitution. This includes the basic conditions under which the operation of company is authorize. Its mandatory to include an “object clause” that informs shareholders, creditors, and those who do business with the company of the permitted scope of operation, which is widely draft able . It also shows the authorized capital of the company. Read some important aspects of the same.

A document that defines the connection between the corporate and therefore the outside world.


It is the best document which consists of the following important clauses:

  1. Name : Firstly, the name of the company that must end with the term “finite”.
  2. Registered Office : Secondly, this clause requires the address of the company’s registered office.
  3. Purpose : Thirdly, the purpose clause must clearly state the purpose behind the establishment of the company.
  4. Liability : This clause mentions the extent to which shareholders obliges to repay their debt if the company dissolves.
  5. Capital : Moreover, the authorized capital of the company and the nominal value of all types of shares must be disclosed here.
  6. Association : To sum up , in accordance with this , shareholder’s’ willingness to partner with the company’s requirement.

Format of Memorandum of Association

According to Section 4 of the Companies Act 2013, companies require to create Memorandum of Association in the format shown in Tables A through E of Schedule I of the Act.

  1.  Table A: Basic articles of incorporation of a private limited liability company.
  2. Table B: Form of the basic articles of incorporation of a company that is a limited liability company and does not have equity capital.

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