The company formation process requires you to appoint a shareholder, a director and a person of significant control. But how old do you have to be to take on these roles?
Perhaps you’re a parent, looking to involve your child in a company formation adventure. Or maybe you’re a budding entrepreneur – wanting to form a company whilst still at school. Whatever your reasons for asking, let’s take a look.
What’s the minimum age for each company appointment?
- Shareholder – there is no minimum age
- Director – must be at least 16
- Person of significant control (PSC) – there is no minimum age
- Secretary (optional appointment) – must be at least 16
A minor can’t be tasked with the day-to-day running of a company (director and secretary) but they can, theoretically, own a company (shareholder) and hold ultimate control over a company (PSC).
Potential issues of appointing a minor as a shareholder
Opening a business bank account, attracting investors, moving shares around – all may be complicated by having a minor as a shareholder. Plus, if you are already an established business, handing shares to a child may cause resentment within your existing team.
If you are willing to wait until the potential shareholder is older, you can add new shares to your company post-incorporation or transfer existing shares to another shareholder. Both are relatively simple processes.
If you have any questions about shares, shareholders, or the company formation process in general, please leave a comment and we’ll be happy to help.