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How many shares should I issue?

Jun 17, 2014

There is actually no ideal number of shares to issue. It depends on individual circumstances and business structure. There is a minimum requirement of 1 share to be issued, so if there is only 1 Director, who also happens to be the only shareholder, then 1 share might be appropriate.

It is common for 100 shares to be issued in order to easily allocate a percentage of the shares according to control and commitment.

It is important to always keep the following in mind when allocating shares:

  • The shares must be paid in full.
  • The amount used to pay for the shares would be lost should the company go into administration.
  • It is always possible to add new shares. This can be done very easily, as opposed to removing shares, so best to start low.

In any case, if you are unsure of what is best for you and your business, seek professional advice through an accountant.

Author

Karen Horne
@UK_Co_Formation

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