---
title: Thoughts on Share Structure for Setup
description: Ideal Share Structure
---

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# Thoughts on Share Structure for Setup

## When incorporating a company, we generally recommend issuing 120,000 ordinary shares at $0.01 per share. This results in an initial share capital of $1,200 while providing a practical and flexible ownership structure for future business needs.

Importantly, the number of shares issued does **not** change ownership or the value of the company. A shareholder holding all 120,000 shares still owns **100% of the company**, just as they would if only one share were issued. 

#### **Key Benefits**

- Simpler ownership transfers by allowing precise percentage interests to be allocated without the need to subdivide shares.
- Investor-ready structure that makes it easier to issue or transfer shares to investors, business partners, family members, or employees.
- Improved succession planning by enabling ownership to be distributed among multiple beneficiaries with ease.
- Greater flexibility for future restructures, employee share schemes, capital raisings, and share buy-backs.
- Easier calculations of ownership percentages and share values as the business grows.

#### **Are There Any Disadvantages?**

Generally, no. ASIC fees and routine company administration are largely the same whether a company has 1 share or 120,000 shares on issue.

#### **Key Takeaway**

Issuing **120,000 ordinary shares at $0.01 each** provides a flexible, scalable, and investor-friendly ownership structure from day one. While ownership remains the same, the larger share base can make future ownership changes, succession planning, and business growth initiatives significantly easier to manage. 

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