Memorandum of Association Template

What is the Memorandum of Association Template?

The Memorandum of Association Template, or MoA, is a pre-structured legal document format that makes sure all the required legal sections are included. It outlines the main details of a business that is governed by UAE Federal Decree Law No. 32 of 2021 (Commercial Companies Law).

This template helps to define the relationship between shareholders and the company, clearly and binding them to agreed terms, and offers a simple process to fill in the required fields of information.

What Are the Elements of the Memorandum of Association Template?

Using the Memorandum of Association Template ensures consistency and reduces errors in preparing legal documents, as it speeds up the company registration. Here are the elements of the Memorandum of Association Template:

1. Company Information: includes the company's official name in Arabic and English, the emirate of registration, and the registered office address.
2. Shareholders' Information: for each shareholder, the full name, nationality, ID number or passport, address, number of shares, and percentage of ownership.
3. Company Activity: listed licensed Business Activities (as per DED approval).
4. Share Capital: include the total Share Capital (AED), number of shares, and value per share (AED).
5. Management Information: includes the manager's name, nationality, ID or Passport Number, the management Type (Single Manager or Multiple Managers), and the manager's powers (General or Limited).
6. Profit & Loss Distribution: includes the profit distribution percentage, loss distribution percentage, and the statutory reserve (5% of annual net profit—Yes/No). 
7. General Assembly: includes quorum percentage and voting majority required (usually 75%).
8. Transfer of Shares: conditions for selling or transferring shares.
9. Company Duration: Duration (e.g., 99 years) and Start Date (Date of Registration).
10. Financial Year: starting and ending date.
11. Auditor (Optional if Required): including the Auditor Name, license number, and emirate
12. Shareholders' Signatures Section
13. Dissolution & Liquidation: This section explains the conditions for closing the company.

Why is the UAE Memorandum of Association Template Important?

The UAE Memorandum of Association Template is Important because it is a legal requirement for company formation in the UAE; it helps the company to ensure compliance with the UAE Commercial Companies Law, as it defines the company's rights and clarifies its responsibilities. 

Furthermore, this template helps the company avoid future disputes between shareholders by clarifying profit and loss sharing, protecting the interests of all partners, and providing transparency in business operations.

1. Required for obtaining trade licenses from the authorities.
2. Provides a clear structure for profit and loss sharing
3. Acts as an official document for legal and financial transactions.
4. Enhances the company’s credibility and professionalism.
5. Ensure compliance with the UAE Commercial Companies Law
6. Avoid future disputes between shareholders by clearing all information.
7. This template makes the business operations transparent.

How To Fill Out The Memorandum of Association Template?

Fill in the Company Information. 

[Company Name (Arabic)]

[Company Name (English)]

[Legal Form (LLC) Limited Liability Company]

[Emirate of Registration]

[Registered Office Address]

1- Fill in the Shareholders' Information

* For each shareholder: *

*Natural or corporate shareholders*

*Maximum and minimum shares allowed per shareholder*

[Full Name]

[Nationality]

[Passport / Emirates ID Number]

[Address]

[Number of Shares]

[Percentage of Ownership]

2- Fill in the Company Activity

* Licensed Business Activities (as per DED approval) *

3- Fill the Share Capital

[Total Share Capital (AED)]

[Number of Shares]

[Value Per Share (AED)]

4- Fill the Management section

[Manager Name]

[Nationality]

[ID / Passport Number]

[Management Type (Single Manager / Multiple Managers)]

[Manager Powers (General / Limited)]

5- Fill in the Profit & Loss Distribution

[Profit Distribution Percentage]

[Loss Distribution Percentage]

[Statutory Reserve (5% of annual net profit – Yes/No)]

6- Fill the General Assembly section 

[Quorum Percentage]

[Voting Majority Required (usually 75%)]

7- Fill the Transfer of Shares

[Pre-emption rights (Yes/No)]

[Approval required from other partners? (Yes/No)]

8- Company Duration

[Duration (e.g., 99 years)]

[Start Date (Date of Registration)]

9- Fill the Financial Year dates

[Start Date (e.g., 1 January)]

[End Date (e.g., 31 December)]

10- Auditor (Optional if Required)

[Auditor Name]

[License Number]

[Emirate]

11- Signatures Section

[Shareholder 1 Signature]

[Shareholder 2 Signature]

[Shareholder 3 Signature]

[Date]

[Place of Signing]

12- Flll the Dissolution & Liquidation

[Dissolution Conditions]

[Liquidator Appointment Method]

Who uses the Memorandum of Association Template in Google Docs and Sheets?

The Memorandum of Association template in Google Docs and Sheets is used by entrepreneurs who are starting a new business and looking for quick and simple documentation. It is also used by small and medium enterprises (SMEs) to prepare all the required information before submission, as well as by accountants to handle company formation more efficiently.

Why use Daftra to generate a Memorandum of Association Template?

Daftra helps businesses to create automated and professional business documents in a simple way without costing time and effort. It offers a ready-made template for the UAE MoA, ensuring accuracy and consistency. 

Also, it helps small and medium organizations reduce the risk of manual errors, allows you to prepare company information before submission, and offers easy customization with a user-friendly interface.