A limited company must issue at least one share. If there is more than one shareholder, you need to issue at least one share per shareholder. Issuing more than the minimum can provide flexibility for future changes. 📈
Tip 💡
Company Structure:
For a private limited company, you must issue at least one share to each shareholder.
The typical number of shares issued is 100 or 1,000 to make future division easier.
Shareholder Agreement:
Determine the number of shares based on the agreements with initial shareholders.
Consider the distribution of ownership and control within the company.
Investment Needs:
Issue a number of shares that reflect the amount of investment needed for the company’s operations.
Ensure the valuation of each share aligns with the investment amount and company valuation.
Future Growth:
Plan for future share issuance to accommodate new investors or reward employees.
Ensure the initial share structure allows for easy expansion without complex restructuring.