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Maximum Number of Subscribers


Maximum Number of Subscribers permitted on Incorporation

When incorporating a company, a large number of subscribers might be required. Situations where such a need might arise could be when registering Flat Management Companies, for example. Large communes of flats typically give each lessee one share each in the company.

The maximum number of subscribers permitted on the set-up of a company is forty. Where this is insufficient for the needs of a particular company, additional shareholders would have to be added following the registration of the company. Additional shares would also be issued to these lessees at this time.

Subscribers and Shareholders are Equal

Once the increase in shares has occurred and all residents of the Flat Management company own one unit of equity each in the company, the owners of those units issued post incorporation would have the same status (assuming that they hold the same class of share as the those originally issued on the set-up of the company) as the subscribers.

The length of time a share is held does not generally affect its status or that of the holder.

The maximum limit for the number of subscribers will not affect the majority of companies formed in the UK. Very few formations occur with a requirement for more than ten persons to receive shares on incorporation.

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