When establishing a company in the UAE, two of the most fundamental legal documents you will create are the Memorandum of Association (MOA) and the Articles of Association (AOA). The MOA acts as the company's charter, defining its relationship with the outside world. It specifies crucial details such as the company's name, its business activities, the registered address, and the amount of share capital. This document is a public record and is essential for registering the company with the relevant economic department or free zone authority.
The MOA and AOA are often combined into a single document for certain company types, like an LLC in mainland Dubai. While the MOA outlines the company's external purpose, the AOA (or the relevant clauses within the combined MOA) governs its internal affairs and management. It details the rules for how the company will be run, including the powers and responsibilities of directors, the rights of shareholders, the process for conducting board meetings, and the procedures for profit distribution and share transfers. A well-drafted foundational document is crucial for preventing future disputes between partners by providing a clear framework for decision-making and corporate governance. Both documents must be notarized, making professional assistance in their drafting highly advisable.