At BTC, we realise that "one size does not fit all", when it comes to company formation and, in particular, the structure and classification of your company's share capital.
Planning for your business and its structure usually starts before you apply for the incorporation of your company. For example, tax efficient remuneration and dividend policies, especially when concerning family owner managed companies may involve the formation of a company with multiple share classes. We also have the £5,000 tax free dividend tax threshold to consider in the tax planning process. These are known as alphabet share structures and may also be used to issue share capital to company investors.
A company may want to have a variance to the prescribed rights to the shares, some or all with different rights attached to them. Typically, ordinary shares have some or all of the following rights:
There are many other scenarios which require careful planning, such as pre-emption rights and any redemption of shares.
We would be pleased to discuss your requirements with you and if necessary draft articles with the prescribed rights, and other authorities as needed to ensure your new company has the correct and valid structure for your needs. Once drafted, we can ensure your company is incorporated at Companies House quickly and securely.
To help you, we have included a choice of Articles of Association that can be used to incorporate simple A and B share classes ranking pari passu, with a variable dividend authority and authority to allot up to 1,000 of each class. This is free of charge.
Please contact us and we will be more than happy to discuss your individual requirements.