Thank you for your positive feedback

You're very welcome!

Glad it was helpful! Good luck with your business venture.

Glad to help

You're so welcome!

Thank you so much 🙂

It's a pleasure, glad you enjoyed it.

Hi Yanick, any transfer of shares is considered a sale. In your case funds would flow from outside the country into the company in South Africa you are investing in. Therefore I would recommend a purchase agreement. South Africa has foreign exchange controls so the transaction will go via the reserve bank. It is important to document this correctly as you would like to create a loan account so that in the future profits can be paid back to you. We don't have an in-house attorney so unfortunately I can't recommend one to assist you with this process. I hope this has helped answer your questions.

Glad it helped!

Hi Mbalenhle, yes they can. However in your case it may not be necessary. If your company was registered with CIPC after 2011 using the standard MOI then all the ordinary shares are already non par value, meaning no conversion is required.

That was quite a technical video. I am pleased you found it helpful

@@swiftreg I don't think it was too technical for a novice like me. When I listen to it again, I will make notes to remind me of the sequence of the steps before I set up my company through Swiftreg. Thank you.Very valuable

Sure no problem, first you have to log onto CIPC and register as a client. Next, you must click on E-services to find the increase share capital link and then just follow the procedure. They will ask you what amount of authorised share capital your company currently has and how many new authorised shares you would like to add. If you get stuck please contact me on info@swiftreg.co.za and I will email you our application form.

Hi there, as you know a share represent a part of the ownership of a company, there are many types of shares all which have different rights associated with them. This is a big topic so maybe I should make a dedicated video on this topic.

Hi there, remember shareholders are the owners of the company, while directors are the managers of the company. The directors can only be natural persons (like you and me) while the shareholders can be both natural and legal (juristic) persons like companies or trusts.

Hi Tersia, yes as it is a UK company all the company secretarial requirements including the shareholding must maintained according to UK law.

Hi there, yes we can assist you. It is not necessary for you for increase your share capital to 1200 shares. (This can always be done at a later stage if needed) For now, your partner simply has to transfer 30 of his shares to you. You will then have 80 shares and he will have 20. This means that you will own 80% of the company. All the authorized share capital will be issued which simplifies the structure. Please use the following link to print the new share certificates. www.swiftreg.co.za/Swiftreg/products/Share_Certificates.aspx On a side note, I would recommend a shareholders agreement. www.swiftreg.co.za/Swiftreg/products/ShareholdersAgreement.aspx I have made a video on this topic. kzfaq.info/get/bejne/pN6libd0rpOZgIU.htmlsi=qDuKdwDr-igwfd8l Kind Regards Douglas

Hi Samrat Excellent question! You are correct let me try and explain :) To recap, in this scenario, the company is valued at R1m. The 50% purchase price (R500k) is paid to the company (not the shareholder) according to this specific sales agreement. (Not the best idea, I may point out) The original shareholder's ownership has now been reduced to 50%, but as the payment went to the company; the company got a capital injection of R500k of which he still owns 50%. Therefore he effectively gets R250k increase in valuation of his shares but not the actual cash as that is still sitting in the company. For him to get the money in his personal name he would now have to pay PAYE or dividends tax.

Hi BM This is the great question and it is what I was trying to explain in the video. The difference is, do you want the investor to pay you or the company? I suggest you talk to your accountant on this matter and possibly a lawyer for the shareholders agreement.

Thank you for your response @@swiftreg, so this is the conundrum we are trying to figure out. The video mentions that it simplifies matters if all shares are allocated upon registration. However I’d love more clarity if possible. Would it be best to allocate the shares and create a clause in our shareholders agreement that proceeds share sale proceeds are reinvested into the company? Or what would you suggest? Our lawyer has asked that we bear in mind the following: 1. That when you sell your personal shares (shares that have been issued to you), you sell them in your name and not in the company's name, therefore, the proceeds of the sale are your personal proceeds and not those of the company. This means the company does not benefit from the sale unless a specific clause places an obligation on shareholders to invest a certain percentage of the sale proceeds of each transaction into company. 2. On the other hand, when you allot the company's unallocated shares in the company's name as a separate entity to the shareholders, the proceeds of the sale belong to the company. This may be better for the company in the beginning when you are still growing and establishing the company's finances as it will ensure that the proceeds of the sale of shares go back into the company to increase the value of the company and share value. Share holders benefit from dividends. This is my first rodeo so to speak and really want to make the best decision on this so I’d really love to hear your thoughts.

@@baremind Hi BM the general rule is if the company sell shares it is to raise capital, but if the shareholder sell shares it is to take profit.

Hi Shawn, it is a large number and may be a bit impractical with all the zero's especially if you have a private company. It is vital to understand that the amount of authorised shares has nothing to do with the valuation of the company. This is why we settled on 1200 authorised shares. If you have a public company and the intention is to list it on the Stock exchange with millions of shareholders, then that is a different matter. But then you would then have to convert your private company to a public company.

Hi Shawn, the correct terminology is the shares get issued to the founders when the company is formed and when founders sell their shares to new shareholders it is called transferring shares. But the process is exactly the same in both scenarios, share certificates get issued, the company register needs to be updated and recorded in the company minutes. It may also be a good idea to draw up a shareholders agreement.

Hi Molatelo, the directors are responsible for issuing the shares. However the shareholders appoint the directors.

Hi Michelle, there are two broad categories of shares namely ordinary shares and preferential shares. They deal mostly with voting rights, preferential dividend pay-outs and repayment priority in the event of bankruptcy. The A and B type shares you refer to are usually ordinary shares and deal with voting rights. The number and types of shares are defined in the MOI of the company.

Hi Moi the answer is nothing. This is because CIPC does not offer a shareholder certificate printing service. We at SwiftReg do, so please log on to www.swiftreg.co.za and select the service. The process is very user-friendly. However if you get stuck we will be happy to assist you telephonically on 021 -5954433 during office hours.

@@swiftreg Okey thank you, will do so. Great help indeed.👌

Hi Tersia, my recommendation is to capture all the information in the share register namely; transaction date, number of shares, distinctive numbers, type of share and value of transaction (share price) The share register must included all aspects of the transaction and be backed up by the minutes. This is necessary in order to refer back to and determine any capital gain in the future; so in short, yes the share price should be captured.

@@swiftreg Thank you so much. This certainly helps a lot.