Dubai continues to attract a growing number of investors, workers, and entrepreneurs. There is a huge demand for outsourced legal drafting services in Dubai. As more investors enter the landscape the demand further increases.
There are several critical services needed by companies and corporations. They play a significant role in assisting newly formed companies and businesses in Dubai. They navigate them through the complexities of legal contract drafting and detailed documentation.
One of the most important documents needed for setting up a business in Dubai is called a ‘Memorandum of Association’ (MOA). This is the document which has information of business. It is indispensable for any company or business formation in the UAE.
It is a foundational document in the establishment of the business. Besides, it is much needed for the governance of a company and its operations.
Nonetheless, it is created at the time of the formation of the company or business. MOA also serves as a public record in the country. Furthermore, drafting the legal services are often referred to as the consulted or advisors.
Advocates: For Drafting Business and Employment Documents.
Moreover, the MOA also outlines what the company is allowed to do as per the law. In addition, It also explains what is prohibited or not. It is shared with all the shareholders and investors of the company.
Shareholders are allowed to modify the clauses within the Memorandum. However, it is essential to follow the proper procedures to do so. MOA is often used for consultation with various public offices for document filing.
The MOA holds significant importance for a company and its operations in the UAE. This is because it governs the company’s interactions with the stakeholders and vital external parties.
In this article, we will delve into some of the key reasons why the MOA is crucial for the company. Let us explore it in more detail:
Regulation of Company Relations is explained in it. The MOA has a significant role in regulating how the company engages with stakeholders and external parties. It illustrates the company’s relationship with shareholders, investors, creditors, and others.
It comprises different rules and guidelines that the company must adhere to. The company needs to follow them in present and in its future operations. It is also helpful in decision-making.
The prime work of MOA is the Legal Registration of the company. This is indispensable for businesses and companies looking to get registered.
Here are some of the key elements that should be present in MOA when drafting papers for businesses or companies.
The name of the Company is clearly stated on it. It contains the names of the businesses under which the company is operating.
It carries the Location of the Company’s Office in the country. MOA specifies the geographical location. It may include the emirate or jurisdiction where the company’s office is located.
MOA figures out the goal or objectives of the Organization. This section of the Memo also contains the intended company’s activities. It also highlights the business scope of the company.
The liability of the Shareholders is clarified in this. The document explains the extent of liability held by the shareholders of the company. It includes all the details about limited liability or other specific arrangements.
Division of the Company’s Capital into Shares is also illustrated in it. If a division is applicable, it outlines how the company’s capital is divided into shares. It also tells about the specifics of shared classes.
The alterations can be done but it should be according to the legal process and as per statute. Before making any changes it is advisable to take professional advice from legal experts and other relevant authorities.
Whenever a company drafts an MOA, it is a common practice in the UAE to turn to legal firms. They assist in ensuring more accuracy and professionalism in work. The legal firms in UAE know about the legal specifications of the UAE and thus, assist accordingly.
They have skilled and well-qualified legal advisors and consultants who have vast expertise and experience in this.