Hi. Really helpful, thank you. I incorporated with a nominal ‘1 share at 1 GBP’ then put in some capital when the business ac was approved. Do the shares/value have to be amended to match the capital on the Confirmation Statement?
Hi Deborah, No you don't need to amend anything on the confirmation statement, the shares and their value are not affected by this. The capital you introduced to the company is referred to as a director's loan (you loaning money to the business), this just means when the business starts to make money you can withdraw the amount you introduced to the company and this will not be taxable income to you as it will just be reimbursing the loan you made to the company. I hope this helps and if we can be any assistance with your company then feel free to contact us - admin@ams-accountancy.co.uk
hi, great video. Does the value of a share have to be a minimum of £1? or could you have £0.01? I have just filled in the SH19 form with 30,000 shares and a total value of £300. or is it better to just do 300 for £1? thanks
Glad you found the video useful. The value can be less than £1 so shares worth £0.01 are perfectly fine, it is more about the total value of share capital that you should be mindful of, so 30,000 shares at £0.01 is just as good as 300 £1 shares.
@@AMSaccountancy thanks for the reply I appreciate it greatly. We are just starting up our company, have no business background and are trying to figure the process out ourselves. Could I ask one more question? How do we remove a shareholder? We started as 3 equal shareholders but one dropped out. How do we transfer those shares to the other 2?
@@Sm-rq9ll You can transfer shares from one shareholder to another, you need to complete a stock transfer form, but you also need to consider if there is any stamp duty to pay on the transfer and consider any capital gains tax on the person transferring the shares. You also then have to update the changes at Companies House by filing a new confirmation statement. This whole process should be something you take further advice on before completing. By all means contact us to discuss further and we could provide a quote. You can email us at admin@ams-accountancy.co.uk
You could do this at any number/amount you wish, but if we are forming a company for one director/shareholder, we would usually issue 1 share to them worth £1 per share, so share capital would be a total of £1. New shares can always be issued in the future if ever needed.
Hi, thanks for this video, it's super clear and useful. I have a question: If you issue 100 shares at incorporation and then raise investment worth eg. 3.58% of the company, how do you deal with that kind of non-round number? Also, why do US videos all recommend issuing 10 million shares at start, vs UK advice is normally 100 shares (like you said)
Thanks Dejan, I'm glad you found this useful. You can add more shares at a later date if you need to dilute the percentage. 100 shares would not be able to be split to give 3.58% so you could add additional shares to be able to achieve this, in this case it could be that you need 10,000 shares and transfer 358 shares to achieve the 3.58% but you should of course take advice before doing something like this. I can't really comment on advice given in the US as we only deal with the UK side of things, perhaps there are different rules in the US, but in the UK you definitely don't want to issue £10million shares to yourself as at £1 per share you will then owe your company £10million.
If the company is solvent when closing, meaning the company can pay any liabilities it owes - and in the case of a dormant company this should be nil liabilities, then there would be no problem with closing the company regardless of the number of shares or the amount of share capital. It's when a company is insolvent (can't pay it's liabilities) that it becomes a problem as the shareholders owe the share capital amount to the company. I hope this helps but if you have any further queries, please give us a call on 01793 818 400 or send an email to admin@ams-accountancy.co.uk
Hi Daniel. You can certainly create shares as an owner/director - you have to in order to form a company in the first place - but you are supposed to pay cash into the company. So, if you issue 10, Ordinary £1 shares to yourself, you should pay £10 into the company bank account. If you don’t pay the cash into the company then the unpaid shares are shown as a £10 debtor in the company’s accounts.
Thank you very informative
Hi. Really helpful, thank you. I incorporated with a nominal ‘1 share at 1 GBP’ then put in some capital when the business ac was approved. Do the shares/value have to be amended to match the capital on the Confirmation Statement?
Hi Deborah, No you don't need to amend anything on the confirmation statement, the shares and their value are not affected by this. The capital you introduced to the company is referred to as a director's loan (you loaning money to the business), this just means when the business starts to make money you can withdraw the amount you introduced to the company and this will not be taxable income to you as it will just be reimbursing the loan you made to the company. I hope this helps and if we can be any assistance with your company then feel free to contact us - admin@ams-accountancy.co.uk
@@AMSaccountancy thank you so much for your advice and contact details. So clear and concise and really helpful 🙏🏼⭐️
hi, great video. Does the value of a share have to be a minimum of £1? or could you have £0.01? I have just filled in the SH19 form with 30,000 shares and a total value of £300. or is it better to just do 300 for £1? thanks
Glad you found the video useful. The value can be less than £1 so shares worth £0.01 are perfectly fine, it is more about the total value of share capital that you should be mindful of, so 30,000 shares at £0.01 is just as good as 300 £1 shares.
@@AMSaccountancy thanks for the reply I appreciate it greatly. We are just starting up our company, have no business background and are trying to figure the process out ourselves. Could I ask one more question? How do we remove a shareholder? We started as 3 equal shareholders but one dropped out. How do we transfer those shares to the other 2?
@@Sm-rq9ll You can transfer shares from one shareholder to another, you need to complete a stock transfer form, but you also need to consider if there is any stamp duty to pay on the transfer and consider any capital gains tax on the person transferring the shares. You also then have to update the changes at Companies House by filing a new confirmation statement. This whole process should be something you take further advice on before completing. By all means contact us to discuss further and we could provide a quote. You can email us at admin@ams-accountancy.co.uk
I had 100,000 shares for 100hkd and just ask to change hopefully it can change to 1000 shares for 1hkd
Thanks for your video, in Canada most company issue no par value shares, are there still such risks or not?
We're not sure of the rules in Canada but in the UK shares must have a value, even if it is just 1p per share.
I want to learn more about this - do you have any recommendations
Thank you for your comment, we would suggest contacting your accountant or you can contact us on 01793 818400
does cancelling the shares count as disposal and hence trigger capital gains tax?
The simple answer is no but there are a lot of factors to consider when cancelling shares so you ought to seek advice before taking any action.
If the company has 1 owner, how many shares should be issued and at what price?
You could do this at any number/amount you wish, but if we are forming a company for one director/shareholder, we would usually issue 1 share to them worth £1 per share, so share capital would be a total of £1. New shares can always be issued in the future if ever needed.
Hi, thanks for this video, it's super clear and useful.
I have a question: If you issue 100 shares at incorporation and then raise investment worth eg. 3.58% of the company, how do you deal with that kind of non-round number?
Also, why do US videos all recommend issuing 10 million shares at start, vs UK advice is normally 100 shares (like you said)
Thanks Dejan, I'm glad you found this useful. You can add more shares at a later date if you need to dilute the percentage. 100 shares would not be able to be split to give 3.58% so you could add additional shares to be able to achieve this, in this case it could be that you need 10,000 shares and transfer 358 shares to achieve the 3.58% but you should of course take advice before doing something like this. I can't really comment on advice given in the US as we only deal with the UK side of things, perhaps there are different rules in the US, but in the UK you definitely don't want to issue £10million shares to yourself as at £1 per share you will then owe your company £10million.
@@AMSaccountancy thanks very much. I appreciate your in depth reply.
What if you want to dissolve a dormant company that never traded? Does the value/number of shares matter of can it affect you negatively in any way?
If the company is solvent when closing, meaning the company can pay any liabilities it owes - and in the case of a dormant company this should be nil liabilities, then there would be no problem with closing the company regardless of the number of shares or the amount of share capital. It's when a company is insolvent (can't pay it's liabilities) that it becomes a problem as the shareholders owe the share capital amount to the company. I hope this helps but if you have any further queries, please give us a call on 01793 818 400 or send an email to admin@ams-accountancy.co.uk
i have 15million unpaid shares. damn i need to fix this
0:52 lol really? can you do that? create shares backed with nothing? that's hilarious
Hi Daniel. You can certainly create shares as an owner/director - you have to in order to form a company in the first place - but you are supposed to pay cash into the company. So, if you issue 10, Ordinary £1 shares to yourself, you should pay £10 into the company bank account. If you don’t pay the cash into the company then the unpaid shares are shown as a £10 debtor in the company’s accounts.