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Memorandum and Articles of Association

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Memorandum and Articles of Association

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26 July, 24
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27 July, 24
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About

A memorandum and articles of association are legal documents that all limited companies must have to register with Companies House. A memorandum is a legal statement signed by the initial shareholders saying they agree to form a company. The articles of association outline the rules for running the company. Companies can either use model articles from Companies House, or they can create their own set of rules.Next steps

How much does a Memorandum and Articles of Association cost?

The cost for a licensed solicitor to help with a Memorandum and Articles of Association is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £100-£150 but in some cases it could cost as much as £200.

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What is the memorandum of association (MOA)?

The memorandum of association (MOA) is one of the essential documents you’ll need when starting a company in the UK. Think of it as the formal declaration that your company is being created. It’s signed by the first shareholders (or guarantors) to confirm their agreement to form the company, and it’s submitted to Companies House as part of the registration process.

Key points to know:

  • It officially establishes your company and records the initial agreement of its members.

  • It includes the names and signatures of the company’s first shareholders or guarantors.

  • Once filed, the MOA can't be changed - it’s a fixed historical record.

What are articles of association (AOA)?

The articles of association (AOA) are essentially the rulebook for how your company will operate. This document defines the framework for internal management, from how decisions are made to the roles and responsibilities of directors. Unlike the MOA, the AOA can be updated as your business evolves.

Key points to know:

  • The AOA outlines how decisions are made and who has the authority to make them.

  • It sets the rules for issuing shares, transferring ownership, and shareholder voting rights.

  • Unlike the MOA, the AOA is flexible and can be revised with shareholder approval.

Model articles of association explained

Model articles of association are a ready-made template provided by the UK government. They’re designed to simplify the process of starting a business by offering a standard set of rules that companies can adopt. These are available for companies limited by shares, companies limited by guarantee, and public limited companies.

Should you consider custom articles?

For many startups and small businesses, the model articles are enough. However, if your business has unique needs - like complex shareholding arrangements or industry-specific requirements - it might be worth creating bespoke articles to better reflect how you want your company to operate.

How our memorandum and articles of association solicitors can help

Although it’s not a legal requirement to hire a solicitor to draft your MOA and AOA, getting professional assistance can be a smart move. Whether you’re starting a new venture or just restructuring, our experienced memorandum of association solicitors can guide you through the process. Here's how we can help:

Drafting a memorandum of association

Our solicitors ensure your MOA complies fully with the Companies Act 2006 and any relevant local laws. By working with us, you can be confident the document is accurate, legally sound, and tailored to your business’s specific needs.

Drafting articles of association

The AOA outlines how your company operates on a day-to-day basis. This includes rules on decision-making, issuing shares, and shareholder voting rights. Our solicitors can draft or customise articles to align with your business’s goals.

Reviewing and amending existing documents

If your company already has articles of association, we can help you review and update them. We’ll make sure your documents reflect your current needs and meet all legal standards.

Memorandum and articles of association alignment

The memorandum and articles of association need to work together to define your company’s governance. Our solicitors can ensure that there's consistency between the two documents.

Why choose Lawhive?

We're not like a traditional law firm. Here’s why businesses trust us:

  • Fixed pricing: Transparency matters. That’s why we offer fixed-fee pricing for our services, giving you clarity on costs from the start. No surprises, just straightforward legal support.

  • Affordable advice: Starting a business can be expensive, but expert legal advice doesn’t have to be. Our services can be up to 50% more affordable than traditional firms, ensuring high-quality support within your budget.

  • Fast support when you need it: We know that starting a business requires quick action. We’ll connect you with a solicitor within two working days, ensuring your legal needs are met quickly and efficiently.

Who are our memorandum of association solicitors?

We only work with experienced and reputable online solicitors. Before we recommend a lawyer, our Legal Assessment team do a thorough background check. They look at a solicitor's qualifications, recent client reviews, areas of expertise and overall experience in the industry. Every small business solicitor on our books brings a wealth of experience and a client-focused approach to every case. Here’s why you’re in safe hands:

  • Fully qualified and regulated: All our solicitors are regulated by the Solicitors Regulation Authority (SRA), ensuring they meet the highest professional standards.

  • Extensive corporate law expertise: Our team has years of experience in business formation, corporate governance, and compliance. They’ve worked with start-ups, small businesses, and large corporations, tailoring their advice to meet diverse needs.

  • Proven reputation and track record: We select solicitors with a history of success in handling memorandums and articles of association. Positive client reviews and excellent outcomes are key factors in joining our network.

How much does a memorandum of association solicitor cost?

The cost of hiring a solicitor for a memorandum of association depends on your business’s specific requirements. At Lawhive, a case assessment and legal advice can start from £189 or to draft articles of association can cost up to £459. We’ll provide a fixed-fee quote tailored to your needs, ensuring absolute clarity and no hidden costs.

What other costs are there?

While solicitor fees will be your main expense, additional costs may apply when creating or updating your memorandum of association. These will be unique to each case but might include:

  1. Company registration fees: Costs associated with registering your company at Companies House or equivalent authorities.

  2. Certification fees: Some jurisdictions may require notarized copies of your memorandum.

  3. Amendment filings: Fees for submitting changes to existing memorandums or articles of association.

  4. Specialist advice: If your business requires bespoke legal advice, such as tax planning or intellectual property considerations.

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Traditional Law Firms

Pay by the hour

Hourly charges mean costs are hard to predict and you could be charged more than you expect.

Frustrating

It can be take days or weeks to hear updates from your solicitor.

Outdated and offline

Offline and slow procedures will require you to visit firms in-person.

No support

No dedicated support team. You'll have to deal with issues on your own.

Here’s what you can expect when working with our memorandum of association solicitors:

1. Initial consultation

Your solicitor will start by understanding your business’s goals, structure, and legal requirements. This consultation forms the basis for drafting or reviewing your memorandum.

2. Drafting the memorandum

Using the information gathered, your solicitor will draft a customised business incorporation memorandum. This document will include essential details like your company’s name, objectives, and members’ commitments.

If you have existing articles of association or other governance documents, your solicitor will ensure they align with the memorandum. This step avoids inconsistencies and potential disputes.

4. Filing and registration

Your solicitor will guide you through submitting the memorandum to the relevant authorities, such as Companies House, ensuring compliance with all legal requirements.

5. Addressing amendments

If changes are needed later - such as adding shareholders or modifying objectives - your solicitor will handle the updates and filings.

6. Ongoing compliance support

To maintain compliance, your solicitor can provide regular updates on legal changes and advise on adjustments to your memorandum or articles as your business evolves.

How does a memorandum of association differ from a memorandum of understanding?

A memorandum of association helps establish a company, while a memorandum of understanding (MOU) is a statement of intent that can signal a contract is imminent.

What are your next steps?

Whether you’re starting a new company, updating governance documents, or seeking compliance advice, Lawhive is here to help. Our memorandum of association solicitors provides expert guidance, ensuring your business is legally sound and ready to thrive. Contact us today for a free quote and take the first step toward securing your company’s future.

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