Summary: This article discusses at length the five clauses of the Memorandum of Association that are necessary for company formation UK.
Company formation UK requires four documents to be lodged with the Registrar of Companies at Companies House in Cardiff. Memorandum of Association is among the four documents to be submitted. It includes five clauses altogether. They are: the company’s name, its objective, the registered office, liability and capital. This article provides important information on all the clauses.
The first clause is the name of the name of the company. You may not have absolute freedom in terms of your choosing a name. For example, a company cannot be registered in a name that is already used by another existing company. Similarly, you cannot select name that is likely to cause offence. Even, use of certain specific words will require the prior written approval of the Secretary of State.
The next clause is the objective of the company. Here you need to describe the purposes for which the company is in business and what it is permitted to do. It is better to have a specific objects clause that states the main purpose of the company; and is followed by general objects clause that permit it to undertake any business activity.
Registered Office is the next important clause. Company Formation Uk necessitates an address to be used as registered office. It is regarded as the official address of the company and all the official posts are sent to it. The fourth clause is the capital. The nominal capital of the company is the maximum nominal value of shares that it can issue. If necessary, it can be increased later.
The last clause of Memorandum of Association is liability. The applicant must state whether or not liability of the company is limited. For company formation UK, you have to provide the Companies Office with all these documents along with the necessary information.
Derrick is an experienced writer and an expert on company incorporation laws and policies in the UK. Presently he is been writing on topics like company formation and online business solutions for companies House Online. For more information please visit Company Formation Uk
