What is a shareholder?

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Hey, there. I’m trying to get a feel for what it takes to open a new limited by shares company through Companies House. I’m the only person involved, and so I’m setting this up by myself. But I’m a bit confused by this request on the application that I name shareholders in the company. What exactly is a shareholder?

I appreciate your help.

Answers

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A shareholder is a person who owns a company limited by shares, either on their own or with other people. In this case, you will be the only shareholder and director because you are setting up the company by yourself. All you need to do is enter your own details where it asks for shareholder information and director’s details.

As the sole shareholder, you will control the whole company. You will own all of the issued shares and you will be liable to pay the value of these shares if the company is unable to pay its creditors. You will also be entitled to keep whatever profits are left after paying business costs, expenses and taxes.

a year ago
 

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