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.

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.

How to choose the right commercial lender and the right commercial loan

How to Choose the Right Commercial Lender and the Right Commercial Loan

Ask the lender to give you five to five references, so you can evaluate their experience and background. If permitted, contact the references for feedback to see if they are satisfied with the lender.

Does the lender offer a wide range of financing options? Is financing accessible?

Check if the lender offers a range of financing options / loan packages that serve your present as well as your future needs. You may need a simple loan arrangement now, but can the lender support the future needs of your business? Accessibility in acquiring the funds right when your business needs them is important.

How well does the lender know your industry?

Lenders who know your industry will generally know the needs, capabilities and potential of your business, and they are in a better position to give you a suitable loan package. They can also see the total picture and recognize temporary limitations against your business’ potential.

Choosing The Right Loan

Once you have narrowed down your list of potential lenders, you can evaluate their financing options to determine which is most suitable for your business and for your needs.

Term Loans

These are the most common loan types that are used for general purposes such as working capital, expansions, purchases and acquisitions. Term loans are used to support your straightforward needs for additional funds, which are to be used for clear and specific purposes. These loans will allow you to acquire large sums over long periods which are to be paid monthly or as in the case of short-term loans, smaller amounts that are paid in full at the end of the term.

Credit Lines

These types of loans are more flexible as they allow you to draw additional funds whenever the need for additional cash arises. Interest rates for credit lines are based on the outstanding loan balance. Different lenders offer many variations of credit line type loans – you must evaluate each credit line carefully and determine which will fit your needs without being too costly.

Factoring

Another not so common option for smaller companies is factoring or receivables financing. Factoring allows you to «sell» your invoices so that you can have the funds immediately. If your business has active but slow paying accounts, factoring may be very useful.

Meeting your needs

If you have taken necessary measures and the time to properly evaluate potential lenders and their loan packages, you will be able to choose the right commercial lender and the right commercial loan to meet not only your current needs, but the future needs of your business.

Find Commercial Loans using our free Commercial Loan Application to compare rates and submit your information to multiple commercial lenders. We have over 300 commercial real estate lenders, business and construction lenders as well as private equity groups waiting to help you. Best of all, GlobalBX is FREE!

Find Commercial Loans using our Commercial Loan Application to compare rates and contact multiple commercial lenders for FREE at GlobalBX!

Learn how to flip a house and become financially stable

Learn How to Flip a House and Become Financially Stable

Do you want to learn how to flip house and make a huge profit? By definition, to flip a house means to buy a house at a depressed price and then to sell that property very quickly for a much higher price. This process allows an individual to make huge sums of money without a lot of upfront capital and without a lot of financial risk. Using this method you can become financially independent very quickly – often on the very first transaction. Many people think that long complicated real estate techniques are utilized or difficult financial terms have to be understood. However, this is not the case. It is a simple and easy process. Just follow some basic steps and you too can learn how to become financially stable.

The first step is to understand how to identify and locate properties with depressed values. There are several reasons that a house may have a depressed market value. The owner may have defaulted on the mortgage for the house. In this situation, the bank or mortgage institution forecloses on the distressed property and assumes ownership over that property. In order to recoup a portion of the defaulted mortgage, the financial institution will put the house up for sale. Desperate to recoup their financial losses, the financial institution will often price the house much lower than market value. These houses present great opportunities.

There are several other reasons a house may have a depressed value. A sudden death might leave a house in financial limbo. If there is a last will and testimony, then the property may revert to another owner. However, if this transfer of ownership is not specified, then the house may be auctioned off to the highest bidder. These real estate auctions offer great opportunities because the price that a house at auction sells for is usually much less than the market value of the house. Even if the property reverts to other ownership after an owner death, the new owner is often highly motivated to sell. Anytime a seller is motivated to sell, the asking price will fall. Other reasons that a house might have a low asking price include the house falling into disrepair, a house being condemned, or a house being in an unsavory location. In all these instances the price of the house may be so low that a high profit margin can easily be attained.

The next step is to secure the money to purchase the house. This is not as hard as you may imagine. In all of the situations described above, the owners of the houses, be they financial institutions or private owners, are extremely motivated to sell. Private owners will often offer owner financing, accept little to no down payment, or even hold off payment until the house has been flipped. Motivated financial institutions will offer short term loans in order to move accumulated assets. Once the house has been acquired for a low cost, the final step is to sell the house at a higher price. Follow these simple steps to learn how to flip a house and become financially stable.

I wanted to be my own boss – you can be too

I Wanted To Be My Own Boss – You Can Be Too

Several months ago I found myself in the worst financial shape I have ever been in, and I wondered if I could somehow be my own boss and get out of this financial trouble. My job was not paying me what I thought I was worth and my employer was unwilling to do anything about it. I thought to myself that if I were in my employer’s shoes, I would certainly recognize my value and increase my pay. This got me thinking that perhaps there was a way that I could be my own boss. This line of reasoning got me doing some research and before long, I was on my way to the financial freedom I had always dreamed of.

I must admit that at first my research proved discouraging. I learned that starting a business from the ground up is loaded with risks and pitfalls. Without an established reputation it is very difficult to attract new customers. And as customers are the lifeblood of every business, this was a very daunting obstacle.

I also considered purchasing a franchise, but I found this would cost hundreds of thousands in capital that I simply did not have. I almost resigned to sticking with my day job until I learned of a program by the name of CarbonCopyPRO.

CarbonCopyPRO is a one of a kind program that provided me with the means to be my own boss. It eliminates all the questions involved with a start up business. Moreover it provides you with leads so that cold calling is out of the equation. This program has provided countless people with the information and tools needed to get into business for themselves. It has allowed me to become my own boss and dig myself out of what I once believed to be an insurmountable amount of debt. You too can work for yourself with this program.