When you form a limited company, you need a memorandum of association and articles of association. While there’s a default set of simple articles for new companies, you may wish to submit tailored articles to Companies House as part of the incorporation process.
Read on to learn more about what memorandum of association in the UK means, and how a template could make the process as painless as possible.
Memorandum and articles of association – explained
There are two parts to the documentation you need to submit when setting up a limited company: memorandum of association and articles of association.
A memorandum of association is a legal statement, which all the initial shareholders have to sign, stating that you agree to form the company. Even if you are the sole shareholder, a memorandum of association still needs to be submitted to Companies House.
Articles of association are the rules by which the shareholders, directors, and the company secretary (if applicable) agree to run the company.
Submitting this documentation is only one part of the incorporation process. If you want to learn about the other areas, check out our guide to setting up a limited company.
What’s included in a memorandum and articles of association template?
The first part of the document is usually the memorandum of association and simply requires the names and signatures of all the shareholders.
The second part of the document, the articles of association template, is a lot longer, and is usually split into five parts:
- interpretation and limitation of liability
- directors’ powers and responsibilities
- shares and distributions
- decision making by shareholders
- administrative arrangements
An articles of association template is likely to use general terminology in each section. If you’d like to add in more specific duties or stipulations, these will need to be agreed upon by all parties signing the document.
How to use a memorandum and articles of association template
An articles and memorandum of association template is likely to include some words that will need to be replaced by you, such as the name of the shareholders and of the company.
Once everyone involved in the incorporation process has agreed to the terms laid out in the document, you’ll all need to sign it before it can be submitted to Companies House.
How are you getting on with submitting your articles and memorandum of association to Companies House? Let us know in the comments below.
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