How many shares should I issue in my Limited Company?


That’s a good question… and one we can’t answer. Now that’s not us being slippery, it’s because every company is different and what suits one company may not suit another. Therefore it wouldn’t be wise for us to say “you should issue X amount of shares with each share being worth X amount”.

We can explain what you probably shouldn’t do when issuing shares in a limited company (however, we still strongly recommend discussing your share options with an accountant or business adviser before proceeding with the company formation):

A limited company gets its name because the shareholders who own it have limited liability. This means that if something went wrong, the shareholders are only liable for their unpaid shares.

Therefore, when starting out, you shouldn’t allocate huge amounts of shares or shares that are worth huge amounts. It’s very easy to add new shares into a company, not so easy to get them removed.

Brought to you by Mathew Aitken at …

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