25 July 2025
Here’s a concise explanation about **Single Object Clause for Incorporation of a Company** under the Companies Act, 2013:
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### Single Object Clause — What is it?
* **Single Object Clause** means the Memorandum of Association (MOA) of the company states **only one main object** for which the company is incorporated.
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### Requirements regarding Main Object Clause for Incorporation:
1. **There should not be more than one main object** in the Main Object Clause.
* The main object clause should be **clear, specific, and singular** so that the company’s purpose is well-defined.
2. **No other objects should be included in the Main Object Clause** — other objects must be in the “Other Objects” clause, not the main object.
3. **The object should be lawful and not ultra vires** the company.
* The company cannot undertake any activity other than the objects stated.
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### Why these restrictions?
* **Clarity and certainty:** The law requires a clear definition of the company's main purpose to avoid ambiguity. * **Avoid Ultra Vires Acts:** If the company undertakes activities outside its main objects, those acts may be declared ultra vires (beyond powers) and thus void. * **Regulatory Compliance:** Proper object clause helps authorities and shareholders understand the company’s business.
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### Relevant Provisions in Companies Act, 2013:
* **Section 4(1)(c):** MOA must state the main objects for which the company is incorporated. * **Rule 11 of Companies (Incorporation) Rules, 2014:** Specifies format of MOA, including Main Object Clause. * **Section 149 (Restrictions on objects of company) applies to certain companies** but generally defines company’s powers as per MOA.
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### Summary:
| What Should NOT be in Main Object Clause | | ------------------------------------------------------- | | 1. Multiple unrelated objects | | 2. Ambiguous or vague descriptions | | 3. Objects not aligned with the company’s core business |
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If you want, I can help you draft a Single Object Clause for your company’s MOA. Would you like that?