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Memorandum of Association (MOA) -- What It Contains, How to Draft, and How to Alter It

What Is a Memorandum of Association? The Memorandum of Association (MOA) is the most fundamental document of any company. Think of it as the company's birth certificate and constit...

Vikas Sharma Tax & Compliance Expert

March 23, 2026 5 min read 55 views Updated Jun 22, 2026

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What Is a Memorandum of Association?

The Memorandum of Association (MOA) is the most fundamental document of any company. Think of it as the company's birth certificate and constitution combined. It defines the company's identity -- its name, where it is located, what it can do, how much capital it has, and who its founding members are.

Every company incorporated in India must have a MOA. Without it, no company can be registered. The MOA is governed by Section 4 of the Companies Act 2013, read with Rule 13 of the Companies (Incorporation) Rules, 2014.

Key Principle

The MOA defines the boundaries of the company powers. Any act done beyond the MOA scope is called an ultra vires act and is void -- meaning it has no legal effect. For example, if the MOA says the company is for manufacturing textiles, it cannot start banking without first altering the objects clause.

The Six Mandatory Clauses of MOA

Section 4(1) requires every MOA to contain the following six clauses:

Name Clause

The name of the company with "Private Limited" or "Limited" as the last words. The name must not be identical or too similar to any existing company or registered trademark. Certain words like "National", "India", "Hindustan", "Board", "Authority", "Commission" require prior Central Government approval under Rule 8(b) of Incorporation Rules.

Registered Office Clause

The state in which the registered office of the company will be situated. Note: Only the state is mentioned in the MOA, not the full address. The exact address is communicated to the ROC separately under Section 12.

Objects Clause

The objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof. After the 2015 amendment, there is no distinction between main objects, ancillary objects, and other objects. A single comprehensive objects clause is sufficient. However, it should be drafted broadly enough to cover all intended business activities.

Liability Clause

A declaration that the liability of members is limited. For a company limited by shares, members are liable only to the extent of the unpaid amount on their shares. For a company limited by guarantee, members are liable only to the extent of the amount they have guaranteed to contribute in the event of winding up.

Capital Clause

The amount of authorized share capital, its division into shares of a fixed amount, and the number of shares each subscriber takes. For example: "The Authorized Share Capital of the company is Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10 each."

Subscription Clause

The names, addresses, descriptions, and occupations of the subscribers (founding members), the number of shares each subscriber agrees to take (minimum one share each), and their signatures witnessed by at least one person.

MOA Format for Different Company Types

Schedule I of the Companies Act 2013 provides model formats:

Company Type	Table in Schedule I	Key Difference
Company limited by shares	Table A	Contains capital clause with share details
Company limited by guarantee with share capital	Table B	Contains both guarantee and capital clauses
Company limited by guarantee without share capital	Table C	Contains guarantee clause, no capital clause
Unlimited company with share capital	Table D	No liability limitation clause
Unlimited company without share capital	Table E	No liability or capital clause

Pro Tip for Startups

When drafting the Objects Clause, keep it broad. Many startups make the mistake of writing very specific objects like "development of mobile applications for food delivery." If you later want to pivot to a different business, you will need to alter the MOA through a special resolution and ROC filing. Instead, use broader language like "to carry on the business of information technology, software development, e-commerce, and related services." our legal team drafts future-proof MOA clauses that cover multiple business activities.

How to Alter the Memorandum

Section 13 governs alteration of the MOA. Different clauses have different alteration procedures:

Changing the Company Name (Section 13(2))

Requires a special resolution (75% majority) plus approval from the Central Government. The new name must comply with all naming rules. File Form INC-24 with ROC.

Changing the Registered Office State (Section 13(4)-(7))

Requires a special resolution plus confirmation from the Regional Director (if within the same state jurisdiction) or NCLT (if crossing jurisdictions). This is one of the most complex alterations and typically takes 2-4 months.

Changing the Objects Clause (Section 13(1))

Requires a special resolution. File Form MGT-14 with ROC within 30 days. If the company has raised money through prospectus and the objects are being changed, dissenting shareholders have a right to exit under Section 13(8).

Increasing Authorized Capital (Section 61)

Requires an ordinary resolution (simple majority) and filing of Form SH-7 with ROC within 30 days along with prescribed fees based on the increase amount.

"A company may, by a special resolution and after complying with the procedure specified in this section, alter the provisions of its memorandum..."
-- Section 13(1), Companies Act 2013

Common Mistake

Many companies forget to file Form MGT-14 within 30 days of passing a special resolution for MOA alteration. The penalty for late filing is Rs. 100 per day of delay (no maximum cap). If the delay extends beyond 270 days, the form can only be filed through the NCLT condonation route, which is expensive and time-consuming.

Real-Life Example

Scenario: Arun runs "GreenLeaf Organics Private Limited" in Faridabad. The MOA objects clause says "to manufacture and sell organic food products." Now Arun wants to also offer organic farming consultancy services and sell farming equipment online.

Solution: The consultancy and e-commerce activities are outside the current objects clause. Arun needs to:

Call a Board Meeting to propose the alteration of objects clause
Send notice to all members for an Extraordinary General Meeting (EGM)
Pass a Special Resolution at the EGM (at least 75% votes in favour)
File Form MGT-14 with the ROC within 30 days along with the amended MOA
Total timeline: 20-30 days. Total cost: Rs. 3,000-5,000 (government fees + professional charges)

we handle the complete MOA alteration process including Board resolution drafting, EGM notice, special resolution, and ROC filing.

Penalties Related to MOA

Violation	Section	Penalty
Company acts beyond objects clause (ultra vires)	Section 4/13	Act is void; directors personally liable for losses
Not filing altered MOA with ROC	Section 13/15	Rs. 100/day delay for company; Rs. 25,000 for officer in default
Not providing MOA copy to members	Section 17	Rs. 1,000 for each default; Rs. 100/day continuing default
Incorrect information in MOA at incorporation	Section 7(5)-(6)	Up to Rs. 10 lakh fine; in case of fraud, imprisonment up to 2 years

Need Help with Compliance?

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Frequently Asked Questions

What is a Memorandum of Association?

The MOA is the foundational document of a company that defines its name, registered office state, objects, liability of members, authorized capital, and founding subscribers. It is governed by Section 4 of the Companies Act 2013.

How many clauses does a MOA have?

A MOA must contain 6 mandatory clauses: Name Clause, Registered Office Clause, Objects Clause, Liability Clause, Capital Clause, and Subscription Clause.

Can the objects clause of a MOA be changed?

Yes. The objects clause can be altered by passing a Special Resolution (75% majority) and filing Form MGT-14 with the ROC within 30 days.

What is the penalty for acting beyond the MOA objects clause?

Any act beyond the MOA objects is 'ultra vires' and void. Directors who authorized such acts may be personally liable for any resulting losses.

What is the difference between MOA and AOA?

MOA defines what the company CAN do (its powers and identity). AOA defines HOW the company operates (internal rules, meeting procedures, share transfer process).

Can a company change its name through MOA alteration?

Yes. Changing the company name requires a Special Resolution plus Central Government approval. File Form INC-24 with the ROC.