UK companies must have at least one share issued to one shareholder. Most companies are created with ordinary shares and they typically carry full rights. But what does this mean and can you issue different classes of shares?
Ordinary shares are the most common shares issued when forming a new UK company. Most incorporation software including our own sets the type of share to a default of issuing ordinary shares to simplify company formation.
Ordinary shares are issued to the owners of the company to define ownership. Calling a share ‘ordinary’ simply implies that shares have no special rights attached. The shareholder will typically have rights to distribution of profit by dividend, rights to vote at meetings and often rights to a distribution of funds on the dissolution of the company.
If you want to form a company with this commonly used type of share class then you can order online using our website www.simpleformations.com. Our online incorporation website is the simplest company formation solution. However, we do speak to some accountants and business owners that want to create companies with different classes of shares. If you need a company with several types of shares we can help.
Creating different classes of shares with different rights can provide the owners with greater flexibility of ownership and profit distribution. Companies can have many types of shares with different rights attached to each share class.
We can tailor make your company with your preferred share classes. Unfortunately we do not offer this online as we have seen too many companies formed incorrectly. Therefore, we will hand process your company to ensure it is formed correctly.
One of our trained company formation agents can create your company with a bespoke share structure. We can create shares with different names, change values of shares and attach different rights to each share class we create for you.
If you need professional help forming your company please talk to one of our team. Your company will be hand processed and formed within just 2 to 3 hours. Full legal documentation will be provided with every company formation.