The Memorandum Of Association Of Restaurant Business is a crucial legal document required when establishing a restaurant business in the United Arab Emirates. It serves as the founding document that defines the company's legal structure, ownership, and operational framework in accordance with UAE Federal Law No. 32 of 2021 and relevant food establishment regulations. This document is necessary when registering a new restaurant business, restructuring an existing operation, or establishing a branch of a restaurant chain. It must address specific requirements for food establishments while incorporating standard corporate governance provisions, capital requirements, and operational guidelines. The memorandum is particularly important in the UAE context as it must comply with local ownership requirements, municipality regulations for food establishments, and specific emirate-level business regulations.
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1. Parties: Details of all shareholders/partners including full names, nationalities, passport numbers, and addresses
2. Background: Brief context about the formation of the restaurant business and the purpose of the memorandum
3. Definitions: Definitions of key terms used throughout the document
4. Company Name and Legal Form: Specification of the company's trade name and legal structure (e.g., LLC, Sole Establishment)
5. Company Objects: Detailed description of permitted business activities, focusing on restaurant and related operations
6. Principal Place of Business: Registered address and location(s) of operations
7. Duration: Term of the company's existence (usually unlimited)
8. Capital and Shares: Details of share capital, value per share, and distribution among partners
9. Management Structure: Appointment of managers, their powers, and limitations
10. General Assembly: Procedures for shareholder meetings and voting rights
11. Financial Year and Accounts: Specification of financial year, accounting requirements, and audit provisions
12. Profit and Loss Distribution: Method of calculating and distributing profits and losses
13. Amendment of Memorandum: Procedures for amending the memorandum
14. Dissolution and Liquidation: Circumstances and procedures for company dissolution
1. Pre-emptive Rights: Used when partners want specific rights regarding the sale of shares to third parties
2. Intellectual Property Rights: Include when the restaurant has unique branding, recipes, or trade secrets to protect
3. Non-Competition: Added when partners should be restricted from competing businesses
4. Branch Establishments: Include when planning multiple restaurant locations
5. Franchise Provisions: Required if the restaurant is or plans to be part of a franchise system
6. Shariah Compliance: Include for businesses wanting to ensure Islamic law compliance
7. Tag-Along/Drag-Along Rights: Add for larger partnerships requiring sophisticated exit mechanisms
8. Deadlock Resolution: Include for companies with equal shareholding to address potential deadlocks
1. Schedule 1: Share Capital Details: Detailed breakdown of shareholding structure and capital contributions
2. Schedule 2: Property Details: Details of owned or leased restaurant premises
3. Schedule 3: Initial Directors/Managers: List of initial directors/managers with their details and powers
4. Schedule 4: Business Plan: Initial business plan including projected financials and operational strategy
5. Schedule 5: Licenses and Permits: List of required operational licenses and permits
6. Schedule 6: Key Assets: Inventory of key assets including equipment and furniture
7. Appendix A: Shareholder Information: Detailed information about shareholders including contact details and ID documents
8. Appendix B: Special Resolutions: Format and procedures for special resolutions
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