What is share capital? | FAQ | Set Up a Company

What is share capital?

When a company is formed a decision is made as to whether to limit the members' liability by shares.

Upon registration at Companies House, members of the company (i.e. the ‘shareholders’) must formally take some, or all, of the shares. The memorandum of association must show the names of the individuals who have agreed to take shares and the number of shares each will take. These individuals are generally referred to as the subscribers.

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