Tuesday, 9 September 2014

The concept of Share Capital in a Company

Share Capital is a term used in the corporate world very frequently. It is not much a complicated term. It simply means the share of each director in the company. The total share of directors is the total share capital of the company.

For example if a company has 100,000 share capital then it means that the share of directors is equal to 100,000 in the company. That can be 50,000 each or it can vary depending upon the formation agreement between the directors.

Often people are confused what to write in the share capital at the time of registration of a company. The companies registration authorities usually charge an amount or incorporation fee according to the share capital of the company.

For example securities and exchange commission of Pakistan charge an amount of 2500 Rupees on the share capital of 100,000 at the time of incorporation of the company. This amount is independent of the other charges taken by the commission at the time of registration.

If you are interested in registering a company in Pakistan, contact us at internationallawyerinfo@gmail.com .. We offer free consultation to our customers in this context.

Salman Yousaf Khan
Corporate Lawyer

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Salman Yousaf Khan
International Lawyer