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What is MOA

What is  MOA

The primary object of the company

The Memorandum of association (MOA) contains numerous clauses that depict the organization's objectives and the object clause is one of them. Each organization is enlisted with a particular business activity as the promoter decides.

So before pushing forward with organization registration, it is essential to know the specific business of the organization and its limits. We have to make reference to the business activity in the object clause of the company.

The objects clause mentioned in the organization's MOA decides the purpose and scope of activities for which the company operates. During the company registration process, the investors choose the objects for which the company is formed. If there are changes to be made to the objects over the span of activities, shareholder approval would be required.

Highlights of Memorandum of Association

  • A Moa expresses the idea of business activities to be joined by the company.
  • It is set up by individuals from the organization.
  • A memorandum of association is signed by the subscriber of the company which must be a minimum of 2 in the case of a private company and 7 people in the case of a public company.
  • It is submitted to the ROC along with the other documents of company formation.
  • A certificate of incorporation will be generated.
  • MOA is a public document and can be checked by any individual by way of inspection.
  • Any act done beyond the powers of the memorandum of association will be treated as unlawful and void.

Usage of MOA

  • A memorandum of association is a significant document without which an organization can't be shared.
  • A memorandum of association also works as a controller for all the individuals from the organization including the directors, it includes the objectives and also contains the limitation which confines the intensity of the organization.
  • All the investors are ensured by the memorandum of association as there is always a risk involved when an individual puts cash in an organization.
  • It makes outsiders know whether a specific organization is qualified to make transactions or acknowledge it.

Clauses of MOA

MOA of the Company comprises of the accompanying clauses:

  • Name Clause

The name clause is the first clause in the Memorandum of association. Here covers the name of a company. If a person wants to know the complete name of the company from which it is initially incorporated, the MOA is the valid documents to check the same. 

Further names can be changed according to the business. Generally, we can know the type of company by this clause whether it is private, public, or OPC by considering the name of the organization.

  • Registered Address Clause

The condition makes reference to the name of the state where the Company's registered office is arranged.

  • Object Clause

It determines the objects for which the Company is incorporated. The fundamental business activity is mentioned in this clause. Any person who wants to deal with the company can access the document by demanding MOA or by way of inspection through MCA Portal.

  • Liability Clause

This clause talks about the liability of the members. It can limited or unlimited. Generally, the company incorporates the limited liability but if the promoter wants to form a company with unlimited liability then he can do so.

  • Capital Clause

This clause mentions the capital of the company. Authorized Capital and Paid-up capital.

  • Subscription Clause

Here mentioned the list of subscribers who subscribed to the company at the time of formation.

Note: Any clause of Moa can be changed but there is no authority to amend the provision of subscription clause.

Importance of Object Clause

Primary business activity helps others to understand the scope of the company. While contracting with the organization one should know whether the company can indulge in activities referenced in the contract. It can be checked from the object clause of the MOA of the organization.

The MOA and AOA are the fundamental reports of the organization. An organization can't undertake activities not mentioned in the MOA. If any activity seems to occur by the company then that transaction will not be considered valid.

Bifurcation of Object Clause

The object clause of MOA is partitioned into 2 parts:

  • Main Object

All promoters of an organization have a few thoughts. The principal object is to list such thoughts and ideas in lawful language. It will cover detailed insights about the business exercises which the organization is going to carry out. 

  • Matters include the promotion of the main business

Here cover only a few points that are necessary to accomplish the principal objects of the organization. It might incorporate buying or sell land, applying for intellectual property rights, technical assistance, combining or amalgamate with some other individual, and so on.

What to incorporate

The principle object must incorporate issues as mentioned below,

  • A brief including any objects related to any sector whether manufacturing or service or trade.
  • To incorporate supporting activities to the primary or main business activity.
  • One should also include related or likewise activities that can assist with expanding the business later on.

Therefore, the object clause must be drafted by remembering all the main points of business so that there is no necessary that arises in the future to modify the clause again and again and business can be run with no trouble.

Change in business activity

At whatever point there is a need to change or alter the business activity, it is possible. An organization will require approval from existing shareholders and the Ministry of Corporate Affairs to change the business activity. Simply after the Ministry's endorsement, an organization can do another business action. Any business can be include or expel from the MOA.


Being a fundamental piece of MOA, it is suggested that some expert mastery is required to draft the complete memorandum or particular object clause. NeuSource Startup Minds India Limited is here to serve you the services with respect to changes in the business activities of the Memorandum of Association. Here a group of experts helps you with every lawful assistance to maintain the business smoothly.

For further queries please contact us on Email Id and Phone Number 9540026175.

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25 Jun

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Akash Rai

"Any time is a good time to start a company.” Neusource indulge in providing business consultancy services which help startups to accomplish their desired results as a TAJ EXPRESS. If you’re passionate about something and you work hard, then neusource is the right choice for you.