Call our team +44 (0) 207 566 3939


How many shares needed for my news business?

How many shares needed for my news business?

by | Oct 7, 2014 | Blog, Company Formation Services, Product Information, Tips & Advice, Uncategorized | 0 comments

Put simply like this, it is a modest enquiry. However, there are numerous mutual forms of ownership of shares in a new company, there`s no easy answer to the number of shares to be allocated.

Given the amount of diverse issues to think about, you may reflect on the specific recommendations of the auditor or other expert consultant if you are unsure of the best way to proceed.

When the company forms, one share at least must be distributed. This share is often allocated to someone, such as a sole director (also a shareholder). However, shares may be issued on behalf of the corporate body; you will always locate a company that owns shares in the business, for example. It is also likely that a solitary share can be allocated towards shareholders’ equity – where two people or more hold shares equally.

There are a lot of precise rules that relate to a PLC. They should have fifty thousand pounds in value of the issued investment. To highlight this, if the nominal value of the shares of a PLC is one pound, the business will be issuing fifty thousand shares for it to start to trade or borrow money. If the nominal value of one penny per share, then five million shares must be supplied so that a nominal fee of fifty thousand pounds to be allocated.

For a lot of companies, there is no maximum amount of shares that they distribute. The Articles of Association state a maximum share capital that serves as the upper limit of shares that are allowed to be issued. If a certain number of shares would cause the company`s share capital to rise, then this limit can either be increased or taken away. Thereafter, the allotment can take place.

Larger companies may need extra capital to invest in businesses that are willing to give more than small firms, although both shareholders and managers often create loans to companies that are of a similar level of investment.

If you enjoyed this blog you can find out more in our insightful news section where we provide helpful posts on relevant business topics. Your Virtual Office London are leaders in virtual office and company formation services.

Blog Categories

Contact Details

Tel: 0207 566 3939

Fax: 0207 566 39352



Our Location

Capital Office
Kemp House
152-160 City Road
London, EC1V 2NX

Opening Hours

Monday - Friday: 9.00AM – 5.00PM
Saturday: Closed
Sunday: Closed

What Does a Company Director Do?

What Does a Company Director Do?  The role of a company director does not end at simply establishing a business address or projecting motivational predictions about the company’s growth. A company director is required to recognise and fulfil a number of key roles. A...

This Is How to File a Confirmation Statement

This Is How to File a Confirmation Statement Whether your business is the pride of a remote UK postcode, or you’ve registered your company at a more established business address, you must file a confirmation statement at Companies House. A Confirmation Statement...

All You Need to Know About Limited Company Shares

If you’re set to launch a company limited by shares, it’s important for you to understand all there is to know about these limited company shares and what they mean for your business. Before you begin working via your prestigious registered office address, take note...

Appointing and Removing a Company Director

There may be a number of reasons you’ll want to remove your existing company director and/or appoint a new individual to the role. Whether you’re planning a major reshuffle at the top for the sake of changing course of your limited company’s ethos, or an individual is...

Where Do I Send My Stock Transfer Form?

Congratulations! You’re either a newly formed business, or you’ve been running your brand from a reputable business address for some time. But with the plaudits comes the pressure; not least the overwhelming number of documents you must process and submit. And when...

7 Important Roles of a Company Director

You may be the proud owner of a new business, functioning from a credible business address, and envisioning a bright future ahead. But if you’re unsure about exactly what a company director’s role entails, then you may find yourself hindering your company’s progress....

In a hurry and just want some advice?