How many shares do i need to register a company

How Many Shares Do I Need to Register a Company?

Australia ranks No. 3 among 181 economies for «ease of starting a business» according to a summary of a study entitled, «Doing Business 2009».

Indeed, it is relatively easy for anyone to set up a new company in Australia. Registration can be completed online and in as early as one day. Other business requirements such as business name registration and goods and services tax registration may also be completed online.

Existing corporation laws make it possible to register a company quickly. Unlike most countries, Australian law does not require a new company to have a constitution or a set of articles for its incorporation. Corporate seals for Australian companies are also optional now.

In other countries, regulatory agencies usually require incorporators of new companies to come up with a minimum amount to support an application for registration. This amount is divided into shares and must be verified by means of a bank certificate stating that the minimum paid-up capital is in deposit.

In Australia, however, this is not the case. Australian start-up businesses are not unduly burdened by strict minimum capital requirements.

Australian corporation law does not specify how many shares a proprietary company must have nor how many shares each shareholder must own or hold in his name. The only requirement is for a proprietary company to have at least one shareholder.

In the Form 201 to be submitted to the Australian Securities and Investments Commission, the applicant for company registration must also include a list of its shareholders and their respective shareholdings. A breakdown of the amounts paid and owed from each shareholder must also be indicated. There may be no minimum amounts required, but it is a practical measure for you to raise an amount that is sufficient for your company’s operations.

Once your shareholdings and those of your other shareholders are stated in the registration form, the same shall form part of your company’s details. Any changes therein will have to be reported within twenty-eight (28) days under pain of penalty. Furthermore, since your liability for your company’s obligations is limited by the value of your shares, you will have to keep all information about the status of your shareholdings current.

Another point to consider is how much capital you should be able to show to prospective business contacts. It is a fact that new clients normally consider the shareholder base of a company in assessing its stability. Meager capital resources may put your company at a disadvantage. Other companies also maintain minimum standards when dealing with new companies. They may consider capital size as a prerequisite for entering into business contracts with you.

Determining just how many shares should be issued and how much capital should be infused is a business decision for you to make. The right value should be an amount that is realistic to your shareholders, sufficient for your operations and acceptable to your clients.

This information will vary from country to country so make sure you research your local regions regulatory body before starting your company.

Investment bottelnecks removed for the mid- atlantic branch of angel investment network

Investment bottelnecks removed for the Mid- Atlantic Branch of Angel Investment Network

Read the papers today, and you’ll feel like start-ups are a rare breed in 2009.  Many sources say less people are starting up companies, albeit successfully too – citing the lack of investors available as one of the top reasons. But perhaps they are not looking in the right places.  

A paper in Philadelphia (Philadelphia Inquirer & Daily News) recently did a story in which a start-up CEO almost seemed to feel like securing angel investment was easier in this market than before.  And it makes sense, since less competition combined with more places to look for funding make this a good time for companies to secure investment.  

It is true that angel investors are becoming more cautious, and one will need a strong, convincing business plan (or some already existing activity) in order to secure such funding, but this has always been the case.  However, sites such as the Mid-Atlantic Investment Network help potential entrepreneurs and existing start-ups alike find more channels in which to reach these investors.  

Many companies will look to raise “Seed Capital” from a wide variety of courses, including friends and family.  But the Mid-Atlantic Investment Network allows members to look beyond that, with the ability to broadcast your plans to other potential investors online.

While technology remains one of the top niches in angel investment (such as the recent development by an entrepreneur in Maryland to develop software that uses facial recognition technology to determine who can see the content on-screen), other fields are also attracting entrepreneurs and angel investors these days.  Our network has active investors and entrepreneurs in fields such as Real Estate, Retail, Business Services, Transportation, Health Care, Entertainment, Agriculture and more.  

A wide range of investors are members, including various angel investors from within Mid-Atlantic regions such as Delaware, Maryland (including Baltimore), Pennsylvania (Philadelphia, Pittsburgh, etc), Virginia, West Virginia and Washington D.C, but also features investors located across the country and internationally.

Join the Mid-Atlantic branch of the Angel Investment Network today and find someone to help get your business off of the ground.

Investors are waiting for the next great business idea

Investors Are Waiting For the Next Great Business Idea

What they may not realize is there are many people in the business world waiting for people just like them. They are looking for people with both passion and a solidified plan, who are without funds to make their dream a reality. People who are already successful will often provide startup capital or venture capital to someone to help them begin their dream of owning and operating their small business.

Venture capital, or VC, is money provided by a person or business to another person or business to help them start their business. It is typically provided to businesses that are in the early stages of growth and have a high potential for growth. The providers of venture capital will often exchange their money for shares in the company. Although they may believe greatly in the company or business, most venture capital investments are not made for entirely altruistic reasons.

The person providing the money, the venture capitalist, expects to have a substantial return on their investment. The person or company that goes looking for VC is often a young company without an established history. They are far too small to raise the money they are looking for through IPO’s, stock issuance, or other standard ways larger companies raise cash. Neither are they able to secure a loan from a bank.

Venture capitalists are constantly approached by people with new business ideas. However they will typically reject the large majority of opportunities that are shown to them. Most simply do not have the combination of rare qualities and potential for growth. A good business model and an excellent management team are also important requirements.

Venture capitalists do not make a living by throwing money at every person who approaches them. They evaluate every opportunity critically and those that do not match their unique criteria will be rejected. Several key things need to be in place before a venture capitalist will invest in a business. A solid business strategy is one of the first keys to securing VC.

Without it, most people will be rejected before their first meeting. Succession planning is also quite important to a venture capitalist. Pumping money into a business without a backup person who knows how to run the company is a bad idea at best. Finally, a group who has a mentor on their team will greatly increase their chances at securing VC.

Although a new company may have a great idea, their lack of experience can be the single greatest inhibiting factor in their pursuit of VC. Finding a mentor with established and successful business experience who will help guide them will greatly increase their chances of securing VC. It will practically ensure the future success of their business. Mentors are also valuable for helping to determine a real value for the business so that one doesn’t ask for too much, or worse, too little when the time comes.

Venture capital comes from a variety of sources. They make their living by providing both capital as well as marketing, small business consultants, and in some cases, mentors. Family and friends are a tried and true source of venture capital. Turning to them can be a last resort because things can get messy, especially if the business fails.

The oft-searched for but not often found angel investor, or someone who can provide the seed money is an option too. They will determine whether a new idea is viable or not, however finding such an investor can be next to impossible. While nothing can ever be certain, making sure a budding small business has a solid business plan is a very basic requirement. A good marketing plan, potential for growth, and realistic expectations are good steps in the path to securing venture capital.

Legitimate work at home jobs — guarantees

Legitimate Work at Home Jobs — Guarantees?

One of the best things you can do for your legitimate work at home job also happens to be the one thing that makes all business owners scared to death: offering a guarantee. Sure you want to let your customers know that they can trust you, but you dont want to run yourself into the ground doing so. Offering guarantees help legitimize work at home jobs.

Depending on the type of work at home job you operate you may be able to get away with a conditional guarantee. Now while conditional guarantees work best for a legitimate work at home job that provides a service such a class or consultation they can also be applied to product where there is a limited time for you to claim the guarantee.

Time limit: Were all accustomed to this type of guarantee since most businesses use it. If youre not satisfied you can return the item with a certain time period for a refund or exchange example: Return for full refund within 10 day of purchase. This is a good guarantee to offer if your selling an e-product such an ebook or DVDs. Time limit helps people stop sitting on the fence and make that move.

Repair or replacement only: This guarantee includes an assurance that the item will work, rather than a satisfaction guaranteed claim. In the event that the item does not work the guarantor will replace or repair the item. This guarantee works if you’re selling hardware or software as your legitimate work at home job. If people know that your hardware of software doesnt work you will fix it or replace it.

Liability limit: Most businesses do not like this type of guarantee but it should be used especially in situations where the customer can claim secondary damages. In this case the guarantee takes the form of a liability limit. If you are running a legitimate work at home job where you are subject to copyright laws then a liability limit guarantee would be very beneficial.

Usage condition: For some products you may want to write the guarantee that states when used according to instructions or providing it has not be dropped or abused. This is often used for fragile items. But some people who operate a legitimate work at home job where they offer classes sometimes use this as well.

The law requires, for all conditional guarantees, that you label limitations precisely. Online, the guarantee must be in a location where the customer can read it. It can not be hidden or in extremely small font. Also, your guarantee has to be read therefore most people will put the guarantee directly under the sales page or on a separate page that the customer would see during the ordering process.

A conditional guarantee is a great way to establish yourself a legitimate work at home job without driving your business into the ground. You want to enhance your ability to sell your prospects on your legitimate work at home job without driving you crazy.