Share capital for new Ltd- does it matter how much?

[VFV]

Hi,

I am about to take the plunge and set up my own Ltd, going from permanent to temping in the Financial Services sector in September. I have a couple of newbie questions about the company formation process, if anyone could help it would be much appreciated..

1. Does it matter how much share capital i set up the Ltd with? And do i need to physically pay that money, or can i just show a receivable in the company's accounts? I will hold all of the shares issued.

2. Memorandum of association- I intend to keep this generic as possible, something along the lines of the extract i have copied below. Could this be relevant to potential IR35 investigations?

(a) To carry out any and/or all business activities including but not limited to retail and wholesale activities, general consultancy, import and/or export and/or distribution of any and/or all goods and/or services and/or any other business activities deemed to be in the interests of the Company by the Board of Directors whether or not ancillary and/or complimentary to any other activities provided that such activities are lawful under the laws of England & Wales

Thanks,
VFV

[Clare@InTouch]

If it's just you then the share amount won't matter - 1 share will give just as much ownership as 1,000 shares. Some people go for 100 as it looks better on the balance sheet.

You should pay for the shares issued, either in cash or via a loan account. You could use the value of the share capital as the opening transfer when you open your company bank account.

I've answered the other question in the other thread!

[Lumiere]

You should pay for the shares issued, either in cash or via a loan account.

Even that is not necessary ..

The only difference is:
"If shares are not 'paid up' and the company goes into liquidation due to debt, the shareholders will be required to pay the creditors the value of the shares that each shareholder owns"
Duport - Company Formation and Companies House Reports (last paragraph)

[Wanderer]

"If shares are not 'paid up' and the company goes into liquidation due to debt, the shareholders will be required to pay the creditors the value of the shares that each shareholder owns"

My company has 100 shares of 1 pound each, of which 2 are issued. One of them has been paid for, the other hasn't. If the company gets into liquidation up then I guess someone will have to pay up the 1 pound they owe for the other share.

It's probably worth engaging an accountant to help out and they can give good advice, set up the company, bank account, VAT reg, FRS, PAYE etc. You are going to need one sooner or later...

[zedAccounts]

My company has 100 shares of 1 pound each, of which 2 are issued. One of them has been paid for, the other hasn't.

Tsk, tsk, your accounts therefore don't balance

ZED.