Hello, I would be very grateful if someone would give me the answer I'm after here.
Have been running a limited company, as sole Director and Shareholder, and doing OK. It's a niche market, a product, trading in the UK only, with worldwide potential. A UK investor has offered £100k for a 50% stake in a new limited company to be formed, to concentrate solely on the 'rest of the world', permitting me to continue solely with the current (UK only) company. Sound like Dragon's Den, I know. The investor will buy £100k £1 shares (50%). That £100k is banked and then spent on marketing and systems etc. The 'investor' will effectively recoup the £100k over 3 years, via dividend distributions of £133k (upon which the investor will become liable to tax at 25%, giving a net of £100k). The same amount will be distributed to me, as 50% shareholder. Thereafter, we will continue to take 50:50 each, and might then look at selling the business 6 years or so down the line. I guess that means sell our shares?
My questions are:
1. If we are forming a company with a Share Capital of £200k (£100k each), how am I supposed to pay for my shares? I've been told I need not pay anything, because my input is 'the product' I invented. Perhaps my £100k contribution should be based on my Goodwill being introduced into the company, i.e. the product? £100k seems like more than a reasonable valuation to me. Can shares be paid for in that way?
2. To anyone reading this, does any other more tax-efficient route (for either me or the investor) spring to mind as to how the above plan should be transacted?