How much share capital do I need to set up a new limited company?

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Every time I read about startups in the papers, the stories always go on about how important share capital is. Well, I’ve got a great idea for a business and so I’d like to incorporate a limited company here in the UK. But share capital! It always seems to be about the share capital. What nobody seems to know is how much share capital I actually need to get up and running. Have you got any ideas?

Answers

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Share capital is simply the total nominal value of a company’s issued shares. You can set up a company with just one share that has a nominal value of £1, which means your share capital will be £1.

Share capital is the limit of your financial liability as a shareholder - if a company goes bust, each shareholder has to pay the company the nominal value of every share they own, unless they have already paid for their shares.

You can have one or more shareholders, you can issue any number of shares you want, and you can make the shares any nominal value you like. Just remember: the higher the share capital, the higher your liability to the company.

a year ago
 

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