Memorandum of Association for the purpose of company registration in Pakistan
Every company requiring registration in Pakistan whether as Private Limited company, Public Limited company or any other form of company must prepare memorandum of association.
Memorandum of association of any company is basically the constitution of the company or a kind of foundation upon which the structure of the company is based.
The important thing to know is that a company once registered can only undertake those businesses that are mentioned in the memorandum of association of the company so all those businesses that the company proposes to take shall be mentioned in the memorandum of association.
The contents of memorandum of association of any company shall be in compliance with the companies’ ordinance, 1984. The memorandum of association should have following contents:
The name of the company that required registration and also whether it is a company limited by shares, limited by guarantee or any other form of business.
The place also specifying the province where the registered office of the company is going to be.
The basic objective of the registration of the company or in other words the reason why the company is to be registered and the business it is going to undertake.
In case the company is going to be registered as Private Limited company or any other form of company the fact shall also be mentioned that the company is limited company and that the liability of the members of the company is going to be limited up to the amount of unpaid capital in case of Private Limited company.
The amount of share capital shall also be mentioned in the memorandum of association with which the company proposes to get registered.
The distribution of the share capital into share of definite amount is also mentioned in the memorandum of association.
Every subscriber or shareholder mentioned in the memorandum of association of the company shall take at least on share it is not possible to take half share.
The number of shares each member of the company proposes to take shall write opposite to his name that how many shares have been taken by him.
Company Registration in Pakistan Conditions for alteration in Memorandum of Association for company registered in Pakistan:
Companies registered in Pakistan are allowed to make alteration in their memorandum of association for the following reasons:
A company registered in Pakistan can make changes in its memorandum to carry on business more economically or more efficiently.
Registered companies in Pakistan can make alteration in its memorandum of association to attain its purpose by new or improved means.
Changes are also allowed in the memorandum if the company registered in Pakistan is proposing to enlarge the area of its operations.
A company can also make changes in the memorandum of association to carry on any other business which can be conveniently be carried with the existing business of the company.
Similarly modification can also be made in the memorandum of association of the company to restrict or abandon any business mentioned in the memorandum of association.
Changes are also made by companies in their memorandum of association to sell or dispose of whole or part of their business.
Sometimes changes are also made in the memorandum of association of the company registered in Pakistan to amalgamate its business with any other company.