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What determines share capital value when starting a company?

I want to start a company and I need guidelines in determining the share value to declare? What is the the financial implications of size of share capital of a company?


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There is a minimum share capital for each type of companies in each country, it is advisable to check the relevant amount in your country. Apart from this, if you want to start a business, you need to consider how much money you will need in the first one or two years and how much revenue is expected during the same period of time.
Certainly share capital is not the only money a company can use, but it is quite hard to get loans these days. Therefore you must rely on the share capital of the company and the money you earn. The expected revenue can be outlined in a business plan. When you plan revenue, it is better to be conservative. Many start-up companies have experienced that things do not happen as quickly as they expect.
Aug 2nd, 2011 at 10:01 AM
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