Memorandum of Association (MOA) is a vital legal document for any Public or Private limited company that mentions all the details of the company’s relationship with its shareholders. It is a public document and anybody can have access to the policies of the company with the public. The MOA should include details like name of the company, address, names of its shareholders and number of shares, the objectives of the company, the capital of the company, the association of persons in the company formation, the liability of the company etc. The MOA should be prepared at the time of registering the company and need to be submitted alongwith the other documents for registration. Hence if you are planning to start a private limited or public limited company, you need to make a well drafted Memorandum of Association.
Articles of Association
Articles of Association (AOA) is a vital legal document of any limited company that describes the functioning of the company from within. It specifies the rights and duties of each member, rights of the Director, etc. AOA mentions the rules and regulations within the company for the management of its internal affairs. AOA helps in the smooth functioning of any company, It describes the relationship of each member with the company and between the members. AOA is required to be made at the time of registering the company and has to be submitted along with the other documents for registration of the company. Hence if you are planning to register a private or public limited company make sure you have a AOA ready and well drafted to submit for registration.
Two or more persons can enter into an association termed partnership to run any business for profit. A partnership is to be made in writing in the form of an agreement. The partnership agreement or deed of partnership has to include the various important clauses like name and address of partners, name and address of the firm, type of business, liabilities of the partners, rights and duties of the partners, capital of the business, distribution of profits and losses in the business among the partners, types of partners etc. Now it is very common to see many persons entering into partnership businesses. But a business without a written agreement is like inviting trouble in future. Hence before entering into any joint partnership business with anyone, make sure that you have created the deed of partnership and signed it before making any investments.
Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) is a new trend of escaping business liabilities due to loss in business. It is a type of partnership wherein the personal assets of the partners are not attached to repay the debts and liabilities of the firm. The partners are liable only up to their share of investment into the fim. Hence, this partnership requires a solid written agreement in place so that no cheating or fraud happens in future.The agreement should include the names and addresses of partners, the name and address of the firm, the type of business the firm does, the capital investment, the share of each partner, the rights and liabilities of each partner, the distribution of profits and losses etc. So if you are planning to start your own LLP make this agreement and sign it before you start investing.
Dissolving Partnership Agreement
Any partnership can come to an end and get terminated by its dissolution. Dissolution of partnership has to be in written agreement format. The conditions of dissolution need to be explained in the agreement. Any partnership can be dissolved by the mutual consent of all the partners. But the dissolving should be made in writing and signed by all partners.The conditions attached to any dissolving like the distribution of the assets of the firm, the repayment of liabilities of the firm etc should be detailed in the agreement. It is not enough to just orally dissolve the partnership because many times future disputes can crop up. So before dissolving your partnership firm make a proper agreement of dissolution of the partnership.
Limited Partnership Agreement (LPA)
A Limited Partnership comprises of a General partner who manages the business and the limited partner who has only limited rights and liability in the business. The Limited partnership agreement (LPA) as it is commonly called, should be made if you are planning to start a partnership business with other parties or if you have already started the partnership business and wish to make your terms of the business into an agreement in writing. The LPA agreement should mention the name, address, designation of each partners and important clauses like capital investment into the business by each partner, duties and responsibilities of the general partner, profits and loss distribution etc. So if you have a limited partnership firm and not yet made an agreement, or if you are planning to start one, then don’t wait , make this Limited partnership agreement.
One Person Company (OPC)
One Person Company is a new concept in the Corporate world which is a hybrid of sole proprietorship and Company form of business. This new concept has made it possible for proprietorship business to enter the Corporate world. When you start an OPC you need to be ready with the documents such as Memorandum of Association, Articles of Association and the name of the company etc. So if you are planning to start a one man company make sure you have all these documents drafted before getting the OPC registered.
Joint Venture Agreement
Joint Venture means two or more parties like individuals, corporate, sole proprietorship’s or any other business types, joint and enter into an agreement to do a particular activity or venture in the business. It is different from partnership because partnership is for a long period and for the entire business, while joint venture is only for a short period that is till the venture or activity is over. If you are an individual or company or proprietorship and are planning to enter into a joint venture to take up some business activity with some other individual or company or proprietorship, then you have to make this agreement. The agreement should be elaborate and in detail mentioning the name, address and type of business of each party to the agreement, the venture for which it is made, the capital investment and other services of each party, the termination of the agreement and the penalty for any default etc. Don’t jump into joint ventures without a properly drafted agreement since this could lead you into trouble in future.
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