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Memorandum Of Association Of Trading Company

Memorandum Of Association Of Trading Company Template for United Arab Emirates

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Key Requirements PROMPT example:

Memorandum Of Association Of Trading Company

"I need a Memorandum of Association of Trading Company for a straightforward general trading LLC in Dubai with two shareholders (80% local/20% foreign ownership), initial capital of AED 100,000, to be established by March 2025."

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Document background
The Memorandum of Association of Trading Company is a mandatory legal document required for establishing any trading company in the United Arab Emirates. It must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations. This document is essential during the company formation process and serves as the primary reference for corporate governance throughout the company's lifetime. It details crucial information including shareholding structure, management arrangements, business activities, and capital requirements. The memorandum must be notarized and approved by relevant authorities including the Department of Economic Development and the Ministry of Economy. It forms the basis for obtaining trade licenses and establishes the legal framework for the company's operations in the UAE market.
Suggested Sections

1. Parties: Identification of all shareholders/partners, including full names, nationalities, and addresses

2. Background: Brief context about the company formation and its intended purpose

3. Definitions: Key terms used throughout the memorandum

4. Company Name and Form: Legal name of the company and its type (LLC, Private Joint Stock, etc.)

5. Company Objectives: Detailed description of permitted business activities and scope

6. Principal Office: Registered office address and provisions for branches

7. Duration: Term of the company's existence (typically indefinite)

8. Capital Structure: Share capital amount, number of shares, and value per share

9. Shareholding Distribution: Allocation of shares among partners/shareholders with percentages

10. Management Structure: Appointment of managers, their powers and limitations

11. General Assembly: Procedures for shareholder meetings and voting rights

12. Financial Year and Accounts: Fiscal year definition and accounting requirements

13. Profit and Loss Distribution: Method of distributing profits and losses among shareholders

14. Dissolution and Liquidation: Circumstances and procedures for company dissolution

Optional Sections

1. Pre-emptive Rights: Used when shareholders want specific rights for purchasing new shares

2. Tag-Along Rights: Added when minority shareholders need protection in case of majority stake sale

3. Non-Competition: Include when restricting shareholders from competing activities

4. Intellectual Property Rights: Required when the company owns or will develop significant IP

5. Deadlock Resolution: Important for companies with equal shareholding

6. Reserved Matters: List of decisions requiring special majority or unanimous approval

7. Employee Share Schemes: Include if company plans to offer shares to employees

8. Dividend Policy: Detailed rules for dividend distribution if specific policy needed

Suggested Schedules

1. Share Capital Details: Detailed breakdown of share classes and rights

2. Shareholders Information: Complete details of all shareholders including ID/passport numbers

3. Licensed Activities: List of specific trading activities licensed by Economic Department

4. Management Structure Chart: Organizational structure and reporting lines

5. Powers of Attorney: Standard forms of delegation of authority

6. Key Performance Indicators: Metrics for evaluating company performance if agreed

7. Initial Business Plan: First-year operational and financial projections

8. Specimen Signatures: Authorized signatories and their specimen signatures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






































Clauses







































Relevant Industries

Retail Trade

Wholesale Distribution

Import/Export

General Trading

Consumer Goods

Industrial Supply

E-commerce

Commodities Trading

Fashion and Accessories

Electronics and Technology

Food and Beverage

Building Materials

Automotive Parts

Medical Supplies

Home and Garden

Relevant Teams

Legal

Compliance

Corporate Governance

Finance

Operations

Risk Management

Corporate Affairs

Business Development

Board of Directors

Executive Management

Commercial Operations

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Company Secretary

Chief Financial Officer

Compliance Officer

Corporate Governance Manager

Business Development Manager

Operations Director

Risk Manager

Board Member

Commercial Director

General Manager

Legal Manager

Corporate Affairs Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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