Shares and Shareholders
If you’re thinking of setting up your own limited company, one concept you’ll need to get to grips with is the whole area of shares. Emily Coltman FCA, chief accountant to award-winning online accounting software provider FreeAgent, gives an overview of the rules around shares in a private limited company.
When incorporating a Limited by Shares company you will need a Director and a Shareholder. Both are pivotal to the general running of the company with the differences depending on the company type; Limited by Shares, Limited Liability Partnership (LLP) or Limited by Guarantee.
All UK limited companies must have at least one director, one shareholder and one person with significant control (PSC). All these roles can be taken by one person, however - as well being able to appoint other people, you can also appoint other companies in roles too.
So you know what a director is (the person who runs the company), what a shareholder is (the person who owns the company), what a person with significant control is (the person who really owns the company) and what a secretary is (the person who takes care of the company admin… if you want to appoint one) but what on earth is a subscriber? Let’s take a look.
Changing your shareholder information is not quite as simple as changing director information (where an online CH01 form can be filed in a matter of seconds) - but it’s still quite simple. In this post we’ll look at how you can do this.
After receiving feedback from our customers we’re pleased to announce that you can now use multiple share classes when forming companies with us. In this post we’ll give you a step by step demonstration on how to do this.
Opening (or starting, or forming, or registering, or incorporating) a company limited by shares is now extremely simple thanks to formation agents (such as us!) and the registrar of companies, Companies House, simplifying the process.
Starting a UK limited company is simple. Very often the only hurdle that gets in the way is jargon; ‘company-speak’ that formation agents, accountants and Companies House (the UK’s registrar of companies - we’re busting jargon already!
Inspired by a question received from a customer (thank you!) - in this post we answer the following "What is a limited company subscriber?
Adding Shares Adding shares to a company is a fairly simple process. To add shares, you need to complete the SH01 – Return of allotment of shares document, you then need to file this document with Companies House (this is free).
From time to time you may need to add new shares to a limited company. This is something that we can help with through our ICAEW accredited company management system.
One of the most common misconceptions about limited companies is that the director is the owner of the company - this is not the case. So if not the director, who?