In order to offer shares to the public you have to set up public limited company (PLC). You can not offer your share to the public If you set up or planning to set up limited company. So get a proper advice before you do.
------------------------
RMBC
Surrey & London
rmbcuk at hotmail.com

Hello,

If its a PLC the shares are traded on the London Stock Exchange, there is many regulations and red-tape, I'm not even sure if a start-up company like yours would be eligible to be listed as a PLC.

I think what haleyscomet is referring to is selling shares in the company in return for loyalty - am I right?

Shares in a limited company can be sold to anybody (but its normally family, friends, investors etc) as long as they are willing to buy into the business based on future performance and return.

Not necessarily PLC's shares are traded on the London Stock Exchange or on AIM. You can set up PLC without listing on any stock exchange.

There are more requirement being plc compare to limited company.

Indeed limited company shares can be sold to anybody but can not be offered to public. I think that is what haleycomet wants!

In any case the op would be better of getting professinal advice. If he gets it wrong everything will be in mess.
------------------------
RMBC
Surrey & London
rmbcuk at hotmail.com

I think the comments above are a little misleading in your context.

If you have a private limited company, you can of course offer a shareholding to in private agreement with anybody you wish (but the shares can not be traded with the general public).

You will have to legally draft a shareholders agreement between individuals which will define the type of shares and how they can be disposed of etc.

The amount you require 22K is a relatively small sum for offering shares and the legal fees and associated costs may be prohibitively expensive to consider this approach.

If you consider that any person giving 22K will expect you to match the investment with a reasonable cash amount (they will want to see you investing more than just time in the business, they will not take all the risk) and will expect a large % of the business in return - you would be better off going to the bank for a loan and retaining full ownership of the business.
------------------------

Virtual Switchboard Services for small businesses with http://Press1.co.uk.
Design and build you own unique call management system.

Hi, i would like to thank everyone that has emailed me with tips and help. I have decided not to go down this line now. Many Thanks for all your help