The first step to starting a business as a company is the actual incorporation. This is the inception of the company and should be thought through before being rushed into. Important things to consider are:

  • Shares – How many shareholders will the company have and what logical to incorporate with to allow for potential growth. A very simple example of this is that while a company set up with 100 shares may be good for two equal shareholders, but how do you then bring in a third equal shareholder without having to issue new shares?
  • Class of shares – Will the company have different classes of shares to distinguish between rights such as voting interests compared to entitlements to distributions of profit?
  • Directorships – Who, as directors, will manage the company?
  • Shareholding – What will the shareholding of the company be? Is it sensible to have the ownership structured within the trust to protect the value of the business from directors’ and shareholders’ personal risks?

Prudentia Law can assist with the incorporation of your new company and provide guidance on the questions above.