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Note, you and your company are both separate legal entities. When you sell your shares in the Company to the investor, you will get money. When the company issues fresh shares and if the investor subscribes to those shares then in that case 100% of the money goes to Company and nothing to your personal account.
Wazzeer Professional Network
ProfessionalWhen I sell shares of my company to an investor, what percentage do I take and what percentage of that money goes to the company?
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Wazzeer Professional Network
ProfessionalNote, you and your company are both separate legal entities. When you sell your shares in the Company to the investor, you will get money. When the company issues fresh shares and if the investor subscribes to those shares then in that case 100% of the money goes to Company and nothing to your personal account.
However, in case you have invested a substantial amount in your company and you would like to get that reimbursed then in that case, the company can treat the money invested by you as Director’s loan and repay the same to you with or without interest (Usually without interest).
You can consider a scenario where you sell part of your shares to investor and the rest company issue fresh shares. In this case, you will get money for the part of shares you have parted with and the rest of the money goes to the company. In this scenario, you will have to pay Capital Gain Tax for the premium paid by the investor.
almost 3 years ago
View answer
When I sell shares of my company to an investor, what percentage do I take and what percentage of that money goes to the company?
-
Wazzeer Professional Network
ProfessionalNote, you and your company are both separate legal entities. When you sell your shares in the Company to the investor, you will get money. When the company issues fresh shares and if the investor subscribes to those shares then in that case 100% of the money goes to Company and nothing to your personal account.
However, in case you have invested a substantial amount in your company and you would like to get that reimbursed then in that case, the company can treat the money invested by you as Director’s loan and repay the same to you with or without interest (Usually without interest).
You can consider a scenario where you sell part of your shares to investor and the rest company issue fresh shares. In this case, you will get money for the part of shares you have parted with and the rest of the money goes to the company. In this scenario, you will have to pay Capital Gain Tax for the premium paid by the investor.
almost 3 years ago
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