What Is ‘Memorandum of Association’ in Company Formation?

Among the four essential documents to be produced to the Companies House (that company formation in the UK necessitates), there is Memorandum of Association. This article of the process of starting a company includes naming, registered office, the object of the company and its liability. A short description of all these points is given here.

Regarding the name of the company, it is directed that the name should not be similar to that of an existing company. Companies House has necessary arrangement for checking the name. Name checking can be done online. You can do it by logging on to the website of Companies House or it can be done with the help of a service provider. The name of the company also should not be confusing or very much similar to other company.

Another important thing to be kept in mind while naming a company is that if it is a limited company then the word ‘limited’ should be there in the name. The abbreviated form of the word (ltd) will suffice. After the naming, there comes the registered office.

Company formation in the UK necessitates one to establish an office that is to be used for official correspondence. The registered office should be in the places authorized by the Companies House. It should be in England if the company is to operate there. And it should be in Wales or Scotland if the company is under the jurisdiction of these places.

After the naming of the company and the registered office, it is necessary to provide the concerned authority with the objective of the company. It is an important part of company formation process and the applicant should clearly mention why he wants to open the company and why he wants to run the business. And finally he is to provide information on the last clause of Memorandum of Association – the liability.

The Author is an experienced writer presently writing on topic like Company Formation UK for taking business services to establish a company.