How Many Shares Do I Need to Register a Company?

Australia ranks No. 3 among 181 economies for "easebreakdown of the amounts paid and owed from each
of starting a business" according to a summary of ashareholder must also be indicated. There may be no
study entitled, "Doing Business 2009".minimum amounts required, but it is a practical measure
Indeed, it is relatively easy for anyone to set up a newfor you to raise an amount that is sufficient for your
company in Australia. Registration can be completedcompany's operations.
online and in as early as one day. Other businessOnce your shareholdings and those of your other
requirements such as business name registration andshareholders are stated in the registration form, the
goods and services tax registration may also besame shall form part of your company's details. Any
completed online.changes therein will have to be reported within
Existing corporation laws make it possible to register atwenty-eight (28) days under pain of penalty.
company quickly. Unlike most countries, Australian lawFurthermore, since your liability for your company's
does not require a new company to have aobligations is limited by the value of your shares, you
constitution or a set of articles for its incorporation.will have to keep all information about the status of
Corporate seals for Australian companies are alsoyour shareholdings current.
optional now.Another point to consider is how much capital you
In other countries, regulatory agencies usually requireshould be able to show to prospective business
incorporators of new companies to come up with acontacts. It is a fact that new clients normally consider
minimum amount to support an application forthe shareholder base of a company in assessing its
registration. This amount is divided into shares andstability. Meager capital resources may put your
must be verified by means of a bank certificate statingcompany at a disadvantage. Other companies also
that the minimum paid-up capital is in deposit.maintain minimum standards when dealing with new
In Australia, however, this is not the case. Australiancompanies. They may consider capital size as a
start-up businesses are not unduly burdened by strictprerequisite for entering into business contracts with
minimum capital requirements.you.
Australian corporation law does not specify how manyDetermining just how many shares should be issued
shares a proprietary company must have nor howand how much capital should be infused is a business
many shares each shareholder must own or hold in hisdecision for you to make. The right value should be an
name. The only requirement is for a proprietaryamount that is realistic to your shareholders, sufficient
company to have at least one shareholder.for your operations and acceptable to your clients.
In the Form 201 to be submitted to the AustralianThis information will vary from country to country so
Securities and Investments Commission, the applicantmake sure you research your local regions regulatory
for company registration must also include a list of itsbody before starting your company.
shareholders and their respective shareholdings. A