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In general if a company is being run to make profits for the owner/s then it will be a company that is limited by shares. Share capital is the investment made by the owners (shareholders) of the business. When a company is formed at lease one single share of at least 1p must be issued in one shareholders name. It is typical for many companies to create shares as £1 ordinary shares. The shares issued at the time of incorporation are normally paid when the owner of the business deposits the amount due in a bank account. Otherwise the amount is owed to the company.
For more indepth information please follow this link to our dedicated page on this subject - Shares and share Capital
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