Shareholders own shares in the company. The incorporation file needs a clear initial allocation, but the commercial agreement between founders should go further than recording a percentage next to each name.
Decide what ownership is meant to achieve Agree the money or other contributions, voting arrangements and economic rights. If all shares have the same rights, the percentage may provide a useful summary. If different classes or special terms are proposed, the articles and related agreements need to reflect them properly.
A company can have foreign shareholders. A corporate shareholder creates an additional documentation layer: explain the ownership chain through to the individuals who ultimately control the structure where required.
Avoid informal promises about shares A statement that someone “will get ten percent later” leaves important questions unanswered. Is it a transfer from an existing owner or a new issue that dilutes everyone? Is it conditional on work or investment? Decide and document the mechanism before presenting the person as an owner to a bank.
Keep the records aligned Shareholder changes can affect the register of members, share certificates, significant controller records and provider due diligence. The annual return should not be treated as the only time ownership information matters.
For a two founder company, record how decisions are made if the owners disagree, how an exit is handled and what happens to unpaid contributions. Advice at the design stage may prevent a much harder dispute later.
Maintain a current ownership chart with dates and supporting documents. It should explain the actual structure, including control arrangements where relevant, rather than a simplified diagram that omits an inconvenient owner.
Sources and scope
General information, not advice for your individual legal or tax position. Confirm current requirements with the relevant authority or provider.