When setting up a company in the UAE, you’ll often hear about the MOA. Many entrepreneurs are unsure about what it means, but it is one of the most important documents in the business setup process. Without it, your company cannot be legally registered.
In this blog, we’ll explain what MOA is in the UAE, why it is required, and what it should include.
What Is MOA in UAE?
MOA stands for Memorandum of Association.
In the UAE, the MOA is a legal document that defines your company’s structure, objectives, and powers. It outlines the relationship between shareholders (or partners) and specifies what kind of activities the company is allowed to carry out.
The Dubai Department of Economy and Tourism (DET) and other emirate authorities require the MOA when you apply for a trade license. Without it, your company cannot be officially recognized.
Key Details Included in an MOA in the UAE
An MOA in the UAE usually contains:
- Company Name – The registered trade name of the business.
- Business Activities – The type of activities the company is licensed to perform.
- Head Office Location – The address of the company’s registered office.
- Share Capital – The amount of capital and how it is divided among shareholders.
- Ownership Structure – The percentage of shares held by each shareholder/partner.
- Liability Clause – Whether the shareholders’ liability is limited or unlimited.
- Profit & Loss Sharing – How profits and losses will be distributed among partners.
- Management Structure – Roles and responsibilities of shareholders and managers.
Why Is MOA Important in the UAE?
- Legal Requirement – Mandatory for obtaining a trade license.
- Defines Scope of Business – Ensures companies operate only within approved activities.
- Clarity for Shareholders – Outlines each partner’s rights and obligations.
- Required by Banks – Often requested when opening a corporate bank account.
- Transparency – Protects shareholders and third parties by setting clear rules.
Who Needs an MOA in UAE?
- LLCs (Limited Liability Companies) – MOA is required for company registration.
- Mainland Companies – Must draft and notarize an MOA with local authorities.
- Free Zone Companies – Some free zones issue their own version of an MOA or similar incorporation document.
MOA in UAE Mainland vs Free Zone
- Mainland Companies – MOA must be notarized by a UAE public notary and follow specific legal requirements.
- Free Zone Companies – Each free zone authority may have its own MOA template or shareholder agreement.
Final Thought
So, what is MOA in UAE? It is the Memorandum of Association, a vital legal document that defines your company’s identity, structure, and scope of business. It is required for company registration, trade license approval, and even for banking purposes.
If you’re starting a business in Dubai or any other emirate, make sure your MOA is drafted correctly to reflect your business goals and comply with UAE laws. Consulting a professional business setup advisor can save time and ensure your MOA is legally valid.