Shareholders and guarantors

Most limited companies are 바카라 사이트˜limited by shares바카라 사이트™. This means they바카라 사이트™re owned by shareholders, who have certain rights. For example, directors may need shareholders to vote and agree changes to the company.

Companies limited by guarantee have guarantors and a 바카라 사이트˜guaranteed amount바카라 사이트™ instead of shareholders and shares.

Most companies have 바카라 사이트˜ordinary바카라 사이트™ shares. This means directors get one vote on company decisions per share and receive dividend payments.

Work out your shares

A company limited by shares must have at least one shareholder, who can be a director. If you바카라 사이트™re the only shareholder, you바카라 사이트™ll own 100% of the company. There바카라 사이트™s no maximum number of shareholders.

The price of an individual share can be any value. Shareholders will need to pay for their shares in full if the company has to shut down. You can choose a low share value (for example, £1) to limit the shareholders바카라 사이트™ liability to a reasonable amount.

Issuing your initial shares

When you register a company you need to provide information about the shares (known as a 바카라 사이트˜statement of capital바카라 사이트™). This includes:

  • the number of shares of each type the company has and their total value - known as the company바카라 사이트™s 바카라 사이트˜share capital바카라 사이트™
  • the names and addresses of all shareholders - known as 바카라 사이트˜subscribers바카라 사이트™ or 바카라 사이트˜members바카라 사이트™

Example

A company that issues 500 shares at £1 each has a share capital of £500. Share capital is not linked to how much the company is worth.

Prescribed particulars

You also need to include information about what rights each type of share (known as 바카라 사이트˜class바카라 사이트™) gives the shareholder. This information is known as 바카라 사이트˜prescribed particulars바카라 사이트™ and must include:

  • what share of dividends they get
  • whether they can exchange (바카라 사이트˜redeem바카라 사이트™) their shares for money
  • whether they can vote on certain company matters
  • how many votes they get

Companies limited by guarantee

You must have at least one guarantor and a 바카라 사이트˜guaranteed amount바카라 사이트™.

Guarantors:

  • are company members
  • control the company and make important decisions
  • do not usually take profit from the company - instead the money is kept within the company or used for other purposes

Guaranteed amount

Guarantors promise an agreed amount of money to the company if it cannot pay its debts. This is the 바카라 사이트˜guaranteed amount바카라 사이트™.

They must pay the company the full amount of their guarantee.

This payment covers guarantors for situations such as the company being closed down. The guaranteed amount is not linked to how much the company is worth - you choose how much they pay.

Part of Set up a limited company: step by step

  1. Step 1 Check if setting up a limited company is right for you

    1. Check what a private limited company is

    How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and get funding.

    Check if you should set up as one of the following instead:

    1. Get help deciding how to set up your business

  2. Step 2 Choose a name

    1. Check the rules for company names
    3. Check existing trade marks

  3. Step 3 Choose directors and a company secretary

    You must appoint a director but you do not have to appoint a company secretary.

    1. Find out what directors are responsible for
    2. Check who can be a director or company secretary

  4. Step 4 Decide who the shareholders or guarantors are

    You need at least one shareholder or guarantor, who can be a director.

    1. You are currently viewing: Check if you바카라 사이트™ll need to issue shares or set a 'guaranteed amount'
    2. Find out how dividends from shares are taxed

  5. and Identify people with significant control (PSC) over your company

    For example, anyone with voting rights or more than 25% of the shares.

    1. Find out what counts as a PSC

  6. Step 5 Prepare documents agreeing how to run your company

    You need to prepare a 'memorandum of association' and 'articles of association'.

    1. Find out how to create a memorandum and articles of association

  7. Step 6 Check what records you'll need to keep

    1. Check the company and accounting records you must keep

  8. Step 7 Register your company with Companies House

    You'll need to register an official address and choose a SIC code - this identifies what your company does.

    1. Check the rules for registered office addresses and email addresses
    2. Check what your SIC code is
    3. Register your company with Companies House

  9. Step 8 Manage your Corporation Tax

    1. Add Corporation Tax services to your business tax account