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How To Issue Shares

22 May 2015

When you form a company it is the requirement of  the Companies Act that at least one share must be issued at the time of incorporation. This is called subscriber share and carries the value (nominal value *) you choose at the time of incorporation.

Q. A question we are often asked by our customers after they have formed a company is – how can I add a ‘partner’ to my business?

A. Limited companies don’t have partners, they have directors and shareholders, so if you mean that you want to give a share of your company to another person then you need to issue further shares.

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Here are 5 easy steps to issuing shares

Check that your company’s Articles don’t have a restriction on the maximum number of shares that can be issued. This is relevant to companies incorporated before 1 October 2009 because these older companies used to have an authorised share capital.

  1. Complete an application form
    The person wishing to own the new shares completes an application form and returns it to the Company with the required payment. So, if the nominal value of the shares is £1 each and he/she is applying for 100 shares then £100 will be payable to the Company.
  2. Pass a Resolution
    The directors pass a resolution to approve the application and allot the shares to the person applying for them.
  3. Send form SH01 to Companies House
    Return of allotment form SH01 must be sent to the Registrar within one month of the allotment date.
  4. Prepare Share Certificate
    The company secretary prepares the share certificate. The share certificates are available in the statutory register. The company must issue share certificates within two months of allotment.
  5. Complete Members Register
    The name of the new share holders must be entered in the company’s statutory register to complete this task of making them members.

Since allotting shares is so easy after the company is incorporated, you don’t need to think about the share structure too much when forming a company. Just form the company issuing one share to the director or another person. Further shares can be issued at any time after the company is incorporated. Call the eformations team on 0208232 5479 for further advice on how to form a company or how to issue shares. We are well equipped with knowledge and experience.

*Nominal value, also know as par value or face value of a share is the value at which it will be redeemed. Nominal value is not the same as market value. If the market value is higher than the nominal value, the difference is called a premium.

5 Tips For Explosively Launching Your Business

19 May 2015

Starting a business is an exciting process, and there’s nothing more exciting than the prospect of launching a company. But how do you make sure your business launch is a resounding success? Here are five top tips on how to explosively launch your business in order to help you lay the groundwork for future success.

  1. Create an action plan

The first thing to do when planning your company launch is to come up with a plan of action. This plan of action should contain everything that needs to be done in the lead up to your launch. Approach it like a calendar and assign tasks for every day. Always think about how long it may take for you to achieve results from an action. For example, a newspaper advertisement may need to be booked in advance and then readers may take several days to respond. In comparison, forming a company through an online service will result in company formation after a few hours. Schedule your tasks accordingly.

 

  1. Establish your brand

Looking professional is essential for any new business. Before you launch, make sure company logos, colours, marketing materials, and your website, are all sorted. Don’t forget to form your limited company and make your business an official trading entity! 

  1. Connect on social media

One of the biggest mistakes business owners make is to spend too much time on the wrong social media channels. Find out where your ideal customer hangs out online and then put your efforts into those social media platforms.

 

Having a profile on LinkedIn is a must for any business, as it will allow other professionals to contact you. If you’re a B2B business, you can also use LinkedIn to gain clients.

 

  1. Test before you launch

Before launching your business, enlist the help of friends, family and anyone more impartial that you can get your hands on! Ask them to click through your website and read through your promotional materials just to make sure everything works and that it makes sense to those without prior knowledge of your business. An exception to this rule would be if you were to provide a highly specialised product or service. In which case, try and connect with those in your industry, who will be able to understand it, and ask them to help.

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  1. Build respect within your industry

In order to build your audience of prospective customers, it can be advantageous to integrate with their communities and establish yourself as an authority. To do this online, you may consider guest blogging for blogs in your niche, or contributing advice to questions asked in social media groups. In the real world, try attending relevant meet-ups or events that your ideal customer will also be attending.

 

Ready to launch your business?

If you form your company and tick off all of these points from your list, (after participating and engaging for a good amount of time) your business’ launch will be far more effective and anticipated than if you were to launch with nothing built up. An explosive launch will give your business the strong start it needs.

 

Do you have questions about forming a company?

At eformations, we’re here to help you make your business a success and that includes helping you form your company and choose the right package for your business. To find out more, please visit our website https://blog.eformations.co.uk/ or call us on 020 8232 5479.

 

 

 

Five Tasks You Should Be Outsourcing

07 May 2015

Outsourcing is a really savvy way for you to take your start-up, or growing business, up to the next level. Hiring freelancers and outsourcing certain tasks will help free up more time so that you and your workforce can focus on moving forward with the business. We’ve created a list of the five top tasks you should be outsourcing to help you start taking advantage of the benefits of outsourcing right away.

Outsourcing. Business Background.

  1. Marketing

If you don’t have professional experience as a marketer, it can be a great idea to outsource your marketing. A good tip is to research the best marketing teams in your area, as it will be easier to check any testimonials and contact other clients in order to find out what kind of results the marketing company yielded. You want to outsource to a company with an excellent track record and ideas which you feel fit in with your brand.

  1. Domestic duties

If you’re finding it stressful to keep up with ‘at home’ tasks such as cleaning the house and mowing the lawn, or even cooking, why not try outsourcing these jobs? If what you’re billing for an hour of your time is a lot more than what it would cost to hire a cleaner for the same time, you should definitely consider outsourcing these roles.

  1. Bookkeeping and accounting

This is another area which it can be hard to get a grip on if you’re new to running a business. Doing it DIY is possible, but it takes up many hours and costly mistakes can be made. It’s often better to pay a professional to do this job, even though it may seem expensive, because in the long run your business may well end up saving money.

  1. Paperwork

Filing documents such as your business’ annual requirements and even forming a company can all be outsourced. As a business owner, getting bogged down in the paperwork is the last thing you want to be doing and learning the ins and outs also takes up valuable time. Outsource tasks such as registering for VAT, or registering your limited company, and free up your time for focusing on your business.

We provide many online business services including online company formation. Find out more here: https://blog.eformations.co.uk/legal-requirements/

  1. Recruitment

Unless you have a background in recruitment, it can be a difficult task to find the right person to fill a role. Professional recruitment agencies will be able to place your ads where they’ll be seen by the right people. Agencies can also screen applicants so that you’ll be left with a well-qualified shortlist without any of the hassle.

Are you ready to start outsourcing?

Here at eformations, we offer many services to help make running your business as smooth as possible. From online company formation, to VAT registration, telephone answering, and much more, find out how we can help your business by visiting our website: https://blog.eformations.co.uk/ Alternatively, call us for a friendly chat on 020 8232 5479.