The more extensive Company Formation document in SA is called the “The Long MOI” or “The Long Standard MOI”. Upon Company Formation, this document will ensure that all the more complicated legalities are covered.

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What is an MOI?

A Memorandum of Incorporation (MOI) can be described as the shareholders ‘control document’ that defines the company’s authority levels as well as the respective roles and rights of shareholders and directors as well as any other positions within a company. It is also the code of corporate governance for a company. It shows to third parties if the company has any limiting conditions. It is a way of keeping the leaders within a company accountable. The Memorandum of Incorporation replaces the Previous Articles and Memorandum of Association. All companies are required to have a MOI and in most situations, companies will be making use of a Standard MOI that is given by CIPC – it is included in all of our Company Registration Packages. If your company setup is more complicated, the Long Standard / Custom MOI format could be a great option to follow.

Advantages of the MOI / Memorandum of Incorporation

It is worth looking at the advantages of a customised Memorandum of Incorporation? With a customised Memorandum of Incorporation you can create a tailor-made Memorandum of Incorporation (MOI) that will be able to meet the unique needs and preferences of your company, the shareholders, directors and also the stakeholders. This is a way that can be used to decrease the commercial and legal risk of directors in a company.

The DTI through the Companies and Intellectual Property Commission (CIPC) have the following standard MOI’s:

We can supply you with these ‘Standard’ MOI’s at no cost upon company registration. With the Memorandum of Incorporation document, you are able to modify several provisions that are set out in the Companies Act, No 71 of 2008. The company can decide which of these provisions to add, to be the best fit for the purpose of the company.

Provisions of the Long Standard MOI or a Custom MOI

Here are some clauses that are not included in the standard short and long form Memorandum of Incorporation.

• Which Provisions are ring-fenced (RF)
• Transparency, accountability and integrity of Companies
• Finances and Distributions
• Enhanced accountability and transparency for companies requiring an audit
• Fundamental Transactions, Takeovers and Offers
• Clarification of Unauthorised Shares
• Issuing of Securities
• Power of the board to make rules
• Corporate Governance
• Percentage for Resolutions

Is it better for my company?

A Memorandum of Incorporation is currently required when registering any company under the Companies Act. For companies that currently have a Memorandum of Association, they will need to replace it with a Memorandum of Incorporation to bring the company up to speed with the Companies Act. We can assist you with this by registering your Memorandum of Incorporation with the Companies and Intellectual Property Commission (CIPC).


Setting up a new Custom MOI:


Registering a MOI for your Company at CIPC South Africa

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