Balance sheet for a dormant company

I don't think you can issue shares at a premium to the original subscribers. It doesn't seem logical.

No!!!!

Your company is NOT dormant because £40 was for money not on the list of exemptions.

Is there any other sense?

Seeing as the DCA is simply a balance sheet it CAN handle the extra £40.

You have done it wrong.

The £40 should be shown under Creditors.

For any purpose your company was not dormant.

Can you tell me why you have a company if you are not using it?

Why did you open a bank account?

Exactly!

Why did you?

I don't think that is possible with original subscribers.

What does "balance" mean?

The shares have to be called up.

You can have a balance sheet with shares not paid for.

Where do you get all this from? You seem to be making it up.

No!!!!

Your company is NOT dormant because 40 was for money not on the list of exemptions.

I don't think you can issue shares at a premium to the original subscribers. It doesn't seem logical.

-

Correct: Because you are limited to only raising what is the Authorised Share Capital. AFAIK. Which is equal to the Issued Capital for the purposes of DCA in my case. Issued Capital is the same value (10) as Authorised Capital in my case. Putting a premium would breach Authorised Capital limit.

What does "balance" mean?

The shares have to be called up.

You can have a balance sheet with shares not paid for.

Where do you get all this from? You seem to be making it up.

I've been taking a company's register of members as same as the list of subscribers at back of Memorandum of Association. That may be the error I'm making?

No, I don't think I'm making an error.

*In my case*, if I were to make a register of members, there would only be one, the same as what is an the list at the back of the Memorandum of Association. So list of subscribers = register of members. Therfore for all practical purposes Issed Share capital is as per list of subscribers in the Memorandum.

Therfore, *in my case* DCA balance cannot be anything other than 10.

He could increase the authorised share capital by passing an ordinary resolution and sending a copy of the resolution to Companies House.

In message , Richard writes

You could be right in that the ten pound capital figure quoted limits your options although it is possible to increase the authorised capital.

Share premium is the excess paid over and above a share's nominal value. This excess must be recorded separately in the company?s financial records, in a 'share premium account', and used for the purposes specified in Section 130 of the Companies Act 1985 (for example, in paying up un-issued shares to be allotted to members as fully paid-up bonus shares.)

"Paul Harris" wrote

Can he backdate that to before the date of depositing the 50?

In message , Tim writes

AFAIK he has 15 days to notify

No!!!!

Your company is NOT dormant because 40 was for money not on the list of exemptions.

__________________________

Is the fact there is a loan to the company which makes it non-dormant?

In Richard's case the obvious thing is to repay this loan leaving 10 in the bank account. The fact it might take 50 to open the account, doesn't normally mean it's a minimum balance.

The authorised share capital doesn't affect the share premium at all.

You said this:

This is what doesn't make sense to me.

No. That is correct to start with. Obviously if more shares are issued later then the register will reflect that.