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Business Tips

Limited company shares

When setting up a company limited by shares (Ltd) there are many elements to consider, such as the company name, directors, the company secretary, setting up a business bank account, the company’s premises, tax, who the shareholders will be and share capital of the company.

It is important to understand the basics on shares before choosing the shareholding of the company. For example:

  • shares of registered companies are in the public domain
  • they must be issued in whole numbers (e.g. they cannot be half a penny or half a pound but you may wish to issue £0.01 shares if you want them to be sufficiently divisible)
  • the shareholder doesn’t need to be a UK resident
  • companies/organisations can be issued with shares

You are able to issue any amount of shares; however, there must be at least one issued. The company’s current directors and shareholders must approve if you decide to issue more shares. In the company’s Articles of Association, you are able to limit the number of shares you can issue but this is no longer automatic (the concept of authorised shares no longer exists).

For more information on company formations and shares, please contact the Wisteria Formations team who will be happy to assist you:

Tel. 0844 893 0808

Email: formations@wisteria.co.uk