Company registration in uae with MoA & AoA drafting & approval

Starting a business in the UAE is exciting and offers multiple benefits. It is truly a place to turn your dreams into reality. Hence, if you also want to get UAE Company Registration, you must know about the Memorandum of Association or simply the MoA. Let’s get straight into the valuable information about memorandum of association in UAE.

What is the Memorandum of Association in UAE?

MoA is the legal document in UAE that defines the businesses identity, purpose, ownership and structure. In simple words, it’s like a birth certificate for your company defining the company at its setup.
Memorandum of Association in UAE answers questions like:

Who owns the company and in what proportion?
What will the company actually do?
How much money (capital) is going into it?
Who’s in charge, and how will decisions be made?

In other words, your company gets incorporated in the UAE after you get a memorandum of association in UAE.

Importance of Memorandum of Association in UAE

MoA in UAE is a legal document required whether you want to incorporate in the mainland or in a free zone. It is also important for the following reasons:

It defines who owns what. Hence, shareholders, investments, and ownerships all are defined in it.
Business boundaries are set up in MoA and you can do only these business activities that are listed here.
It helps in protection of personal liability if you have a LLC Company Registration in UAE.
Your MoA will be required in case you want to apply for bank accounts, visas, contracts or trade licenses in the UAE.

Key Details Mentioned in Memorandum of Association in UAE

Company name and legal type (LLC, partnership, sole establishment, etc.)
Business address (the registered office in the UAE)
Business activities (what your company will actually do)
Share capital and ownership (who owns how much)
Shareholder details (names, nationalities, investments)
Profit and loss distribution (how profits and losses will be shared)
Management structure (who’s managing and their powers)
Company duration (whether it’s limited or indefinite)

Mainland vs. Free Zone MoA: What’s the Difference?

Feature	Mainland	Free Zone
Approval Authority	DED (Department of Economic Development)	Free Zone Authority
Template	Custom-drafted and notarised	Pre-approved, simpler templates
Flexibility	Follows UAE Commercial Companies Law	More flexible and investor-friendly
Ownership	100% foreign ownership allowed in many sectors	Almost 100% foreign ownership
Processing Speed	Moderate	Usually faster

What is the approval time for Memorandum of Association in UAE?

Mainland MoA: In Mainland, the MoA approval usually takes around 3–10 business days after notarisation.
Free Zone MoA: In Free Zone, the MoA is usually approved within 1–5 days if you use their standard template.

Common Mistakes to Avoid while drafting Memorandum of Association in UAE

Don’t forget to add business activities that you might be planning to do later.
A small mismatch in ownership or capital details can result in wrong MoA or even rejection.
You need to make sure the Arabic translation is in the right format and correct.
Each authority has its own MoA format. Using the wrong one can cause rejection.
If you are planning to change shareholders or activities, do not miss to add the “amendment clause” so you can easily add shareholders or activities later.

Conclusion

In conclusion, Memorandum of Association is an important and legal document that incorporates your company in UAE. Without having a Memorandum of Association in the UAE, you can not operate your business in the UAE. Once your MoA is drafted carefully and planned, you can then start growing your business which will be a smooth process as you will be able to get trade licenses and contracts.

FAQs

1. Is the MoA subject to revision once registered?

The UAE can have the changes in the shareholders, capital, or business activities amended in the memorandum of association with the support of notarization and approval of the authority which facilitates the easy UAE Company Registration.

2. What is the distinction between MoA and AoA?

The memorandum of association in UAE describes the structure of the company, its goals and shareholders, whereas AOA addresses internal management regulations. UAE Company registration is obligatory with MoA, AoA.

3. Is it possible to have non-UAE residents as shareholders or managers?

Yes, foreign shareholders and managers are eligible to be included in the memorandum of association in UAE. There are certain areas that need a local partner and clear ownership should be made in the case of UAE Company Registration.

4. What if MoA and trade license are not similar?

The differences between the memorandum of association in UAE and trade license may slow down the process of approval. UAE Company Registration is only possible when the MoA aligns with business activities, shareholding and capital.

5. Is it possible that MoA consists of several business activities?

It is true that the memorandum of association in UAE may contain multiple activities however these activities are supposed to be related or approved. There are some sectors that entail further regulatory approvals of UAE Company Registration.