Share allocations for a new company
Discussion
I'm not sure it's that much of an issue, from what I can find on t'interweb, but I thought I would ask the wise and mighty on here, for any suggestions.
I'm just going through the process of Registering a Company and have read the guidance notes on the HMRC site, and performed a couple of searches. I'm at the point of Memorandum and Articles of Association, which requires me to set out the share allocation. For now, I am the only Director. My wife may join me at some point in the future, but to keep dividends payments simple I didn't intend to add her now.
The question is, do I just issue one share, or some multiple, say 100, with the whole allocation going to me? And what sort of value should I give each share; £1?
Also, I've checked the original share allocation for my current company (through which I will do occasional work, and through which my wife works) and back in 2005 it seems to have original been set up with 1000 shares, but with me being allocated only 100, as the sole Director. (This has now changed, as my wife is also a Director).
As a default, I was considering 100 shares at £1 each, all allocated to me, but I want to make sure I'm not missing something!
I'm just going through the process of Registering a Company and have read the guidance notes on the HMRC site, and performed a couple of searches. I'm at the point of Memorandum and Articles of Association, which requires me to set out the share allocation. For now, I am the only Director. My wife may join me at some point in the future, but to keep dividends payments simple I didn't intend to add her now.
The question is, do I just issue one share, or some multiple, say 100, with the whole allocation going to me? And what sort of value should I give each share; £1?
Also, I've checked the original share allocation for my current company (through which I will do occasional work, and through which my wife works) and back in 2005 it seems to have original been set up with 1000 shares, but with me being allocated only 100, as the sole Director. (This has now changed, as my wife is also a Director).
As a default, I was considering 100 shares at £1 each, all allocated to me, but I want to make sure I'm not missing something!
Simplest set up (and fairly common) is an allocation of 100 £1 Ordinary Shares.
If you want your wife on board later, you can issue additional shares to her or you can transfer some of the existing 100 shares to her.
You should, at the initial allocation of the first lot of shares, bank the cash amount for those shares into the company bank account. So, if you did allocate 100 shares to yourself, you should really bank £100 of your own money into the company bank account.
If you want your wife on board later, you can issue additional shares to her or you can transfer some of the existing 100 shares to her.
You should, at the initial allocation of the first lot of shares, bank the cash amount for those shares into the company bank account. So, if you did allocate 100 shares to yourself, you should really bank £100 of your own money into the company bank account.
Eric Mc said:
Simplest set up (and fairly common) is an allocation of 100 £1 Ordinary Shares.
If you want your wife on board later, you can issue additional shares to her or you can transfer some of the existing 100 shares to her.
You should, at the initial allocation of the first lot of shares, bank the cash amount for those shares into the company bank account. So, if you did allocate 100 shares to yourself, you should really bank £100 of your own money into the company bank account.
Cheers! The last bit is useful info....If you want your wife on board later, you can issue additional shares to her or you can transfer some of the existing 100 shares to her.
You should, at the initial allocation of the first lot of shares, bank the cash amount for those shares into the company bank account. So, if you did allocate 100 shares to yourself, you should really bank £100 of your own money into the company bank account.
Well, the Registration Process is pretty easy on the Beta site - easier than reading guidelines lead me to believe.
It defaulted to 100 at £1, so I've gone with that.
Site isn't perfect yet, being BETA, and I'm not sure if I've registered for PAYE or not. No great rush on that anyway, as I won't be making payments for a while; I'll wait until confirmation of registration comes through before I proceed with that bit.
It defaulted to 100 at £1, so I've gone with that.
Site isn't perfect yet, being BETA, and I'm not sure if I've registered for PAYE or not. No great rush on that anyway, as I won't be making payments for a while; I'll wait until confirmation of registration comes through before I proceed with that bit.
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