Business:Concepts:Company [Notes]

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# Business:Concepts:Company #

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<panel title="Summary">
The following is information aimed at starting new limited companies ('startups').
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### Company Formation

* Company Name versus Trading Name:
  * Explain
* Shares:
  * Default number is 100 (ie 1 share = 1% of the company) in some countries and in others 1000 (ie, 1 share = 0.1% of the company).
    * Note that both numbers are pretty difficult/small to exchange for sweat equity, so consider 10,000 (each share = 0.01%). So if you think the company's vision is worth $1,000,000, then a developer (@ $1000/day) might be worth 1 share.
* Directors are not necessarily Shareholders: Directors direct the company. Can be employees. 
* Shareholders own a Share of the company.
* Allocation: all Shares have to be allocated to Shareholders.
  * Q: Can the company keep some, to allocate to employees?
* Adding more shares:
  * Q: When/Why.
  * When an investor adds (eg: $1m more) do you transfer shares, or add shares?
* GST:
  * A GST is needed in order to do business
* Date:
  * A public company's record has to be kept up to date every year. By June, if you want to do that at the same time as personal tax records.



## Resources ##