Just registered as a Private Limited company

[alexwilliams]

Just registered as a Private Limited company what do i need to know about shares? When i signed up it said i must allocate shares and said something about the 2 partners owning the first two at £1?

I didnt understand any of it? anyone be kind enough to explain?

We dont really want people buying shares in us.

[Indizine]

Thats won't happen, don't worry (unless you want to sell some later, but people can't just come along and buy them).

You would typically (but not necessarily) have 100 shares at say £1 each, and allocate yourself as a director, one share. Is there just you as a director/shareholder?

[openmind]

Trying to avoid being over critical here but did you actually take any professional advice before forming the company?

[accountantpete]

Very basically,the issuing of shares provides the legal basis for the ownership of the company.So if you issue 2 shares (one each to you and a partner) then each of you owns 50% of the company.

If you are intending to use the company to trade then you really need to get professional help as regards the implications of this.

[Duchess of Grange]

When we formed I created 1000 ordinary shares valued at £1 and although myself and my sister are both Directors I allocated all the shares to myself. Therefore I own 100% of the company.
Hope that helps.

[alexwilliams]

Thats won't happen, don't worry (unless you want to sell some later, but people can't just come along and buy them).

You would typically (but not necessarily) have 100 shares at say £1 each, and allocate yourself as a director, one share. Is there just you as a director/shareholder?

So if people want to buy shares in my company i have to authorise it? Also it is me and my friend who are the owners/directors

Trying to avoid being over critical here but did you actually take any professional advice before forming the company?

No not really, I contacted the business link and they sent me different information on the ways i could go and limted was the best.

When we formed I created 1000 ordinary shares valued at £1 and although myself and my sister are both Directors I allocated all the shares to myself. Therefore I own 100% of the company.
Hope that helps.

This is exactly what happened when i created the limited company. The minimum i could allocated was 1000 at £1. How do i allocated all the shares to myself and my business partner?

[accountantpete]

So if people want to buy shares in my company i have to authorise it? Also it is me and my friend who are the owners/directors

No not really, I contacted the business link and they sent me different information on the ways i could go and limted was the best.

This is exactly what happened when i created the limited company. The minimum i could allocated was 1000 at £1. How do i allocated all the shares to myself and my business partner?

Shareholders own the company and appoint Directors to run the company(although in your case owner and director are one and the same).

If you start trading with this company it could cost a small fortune to sort out,as once trading starts you have to file accounts etc. Worst case scenario is that it trades for 3 months,dies a death and then costs you £500 or so to get wound up!

The 1000 is likely too be the authorised maximum share capital.

[alexwilliams]

If you start trading with this company it could cost a small fortune to sort out,as once trading starts you have to file accounts etc. Worst case scenario is that it trades for 3 months,dies a death and then costs you £500 or so to get wound down!

The 1000 is likely too be the authorised maximum share capital.

If you go to companies house direct you have to submit financial information but i did it by http://www.companyformations247.co.uk/ didnt require any documents to be sent.

[accountantpete]

If you go to companies house direct you have to submit financial information but i did it by http://www.companyformations247.co.uk/ didnt require any documents to be sent.

If the company trades at any time, it has to submit accounts at a later date. An accountant will probably charge you £500+ for this service-please be aware of this fact. Also there are large fines if you are late filing these accounts.

[alexwilliams]

How often do these need to be done? Once a year?
I assume this £500+ is the same/includes as VAT returns?

it says on the companies house site:
Accounting Reference Date: 31/07
Last Accounts Made Up To: (NO ACCOUNTS FILED)
Next Accounts Due: 27/04/2011
Last Return Made Up To:
Next Return Due: 24/08/2010