Company Formation - No. of shares?

[snt]

This probably is a bit out of topic question but I would still appreciate to hear from people who have already gone through this.

I am in the process of forming a Private Limited company after my Initial T1E single applicant Entry Clearance. Most of the accountants, company formation websites suggest to have 1 share with nominal value of £1 as most of the investments is done by Director Loan rather than paid up capital. I would like to ask:

- what is the implication of such low paid up capital when you go to businesses/banks, do they consider you seriously? or is it a norm and really doesn't matter?

- I was thinking to have 100 shares of £1 each in order to make the share holding percentage easy to comprehend. It will also allow we to sell part of my business to other shareholders in case I need further cash injection into the business. Under T1E Extension rules, am I allowed to have multiple directors in the company (even though initial application was made just by 1 applicant) for which I am a major part and have already invested £200,000.

thanks in advance!

[seasky]

This probably is a bit out of topic question but I would still appreciate to hear from people who have already gone through this.

I am in the process of forming a Private Limited company after my Initial T1E single applicant Entry Clearance. Most of the accountants, company formation websites suggest to have 1 share with nominal value of £1 as most of the investments is done by Director Loan rather than paid up capital. I would like to ask:

- what is the implication of such low paid up capital when you go to businesses/banks, do they consider you seriously? or is it a norm and really doesn't matter?

- I was thinking to have 100 shares of £1 each in order to make the share holding percentage easy to comprehend. It will also allow we to sell part of my business to other shareholders in case I need further cash injection into the business. Under T1E Extension rules, am I allowed to have multiple directors in the company (even though initial application was made just by 1 applicant) for which I am a major part and have already invested £200,000.

thanks in advance!

You may have external/other driectors. In fact doing that (along with external investment) is the proper way to grow a business. Of course value add directors that suport the business and guide the entrepreneur.

Just sticking to the minimum of T1e may get you a visa but not a good life

[snt]

This probably is a bit out of topic question but I would still appreciate to hear from people who have already gone through this.

I am in the process of forming a Private Limited company after my Initial T1E single applicant Entry Clearance. Most of the accountants, company formation websites suggest to have 1 share with nominal value of £1 as most of the investments is done by Director Loan rather than paid up capital. I would like to ask:

- what is the implication of such low paid up capital when you go to businesses/banks, do they consider you seriously? or is it a norm and really doesn't matter?

- I was thinking to have 100 shares of £1 each in order to make the share holding percentage easy to comprehend. It will also allow we to sell part of my business to other shareholders in case I need further cash injection into the business. Under T1E Extension rules, am I allowed to have multiple directors in the company (even though initial application was made just by 1 applicant) for which I am a major part and have already invested £200,000.

thanks in advance!

You may have external/other driectors. In fact doing that (along with external investment) is the proper way to grow a business. Of course value add directors that suport the business and guide the entrepreneur.

Just sticking to the minimum of T1e may get you a visa but not a good life

sounds good & thanks for the quick reply!!

[snt]

Hi, I see the possibility to invest in my newly established company as either Share Capital OR Directors Loan.

I understand the liability risks associated with investing through Share Capital against the Directors Loan. Apart from these, which is a preferred way of investing?

[seasky]

Hi, I see the possibility to invest in my newly established company as either Share Capital OR Directors Loan.

I understand the liability risks associated with investing through Share Capital against the Directors Loan. Apart from these, which is a preferred way of investing?

Do you plan to grow your business through external investors? If so they will likely want a debt free company and for the founder to have 'skin in the game'.

Company structure does matter and good that you are thinking about it

[snt]

Do you plan to grow your business through external investors? If so they will likely want a debt free company and for the founder to have 'skin in the game'.

Company structure does matter and good that you are thinking about it

I can't rule out the possibility of having external investors as the business expands hence I would prefer to have that flexibility available.

as for using Share Capital as a method of investment, I believe it gives more confidence to the banks you are dealing with as well because my proposed business involves international trade and banks remain an integral part of the transactions.

[n8net]

i would like to know about this.. shared capital DL and implications of shares..if any1 got any links that summarises like (gov links) please do send...

thanks