What is share capital?

In the business world phrase "share capital" you will hear a lot, but what it actually means? In this article, we will find out the meaning of share capital!

What is share capital?
The share capital is the portion of a corporation's equity that has been obtained by the issue of shares in the corporation to a shareholder, usually for cash, it is also known as a corporation's share capital or capital stock in US English.

Share capital in a strict accounting sense
The share capital is the nominal value of issued shares - that is, the sum of their par values, as indicated on share certificates.

If the allocation price of shares is greater than their par value, e.g. as in a rights issue, the shares are said to be sold at a premium - variously called share premium, additional paid-in capital or paid-in capital in excess of par.


What is Legal capital?
Legal capital is used in UK company Law and EU company law and other corporate law jurisdictions to refer to the sum of assets contributed to a company by shareholders when they have issued shares. the law often requires that this capital is maintained and that dividends are not paid when a company is not showing a profit above the level of historically recorded legal capital.

Why should you trademark your brand?

If you are serious about your business, you have to trademark your brand! All successful brands are trademarked and you should trademark yours too!

What is a trademark?
A trademark is a recognizable insignia, phrase or symbol that denotes a specific product or service and legally differentiates it from all other products. A trademark serves to exclusively identify a product or service with a specific company and is a recognition of that company's ownership of the brand. Trademarked products are generally considered a form of property.

What is a brand name?A brand is a name, term, design, symbol, or other feature that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising. Name brands are sometimes distinguished from generic or store brands. For example - Apple, Ford, Nike, Coca-Cola - are brands!

Why should you trademark your brand?
If you do not trademark your brand, it basically means it doesn't belong to you, it means that it is open to everyone, everyone can use it, everyone can sell with your brand name. If you are selling something under your brand name that is not trademarked, after some time it will be stolen, or maybe someone will trademark your brand before you and all of your effort will be stolen from you!

How does trademark works?

• Trademark works only in the country where you register it - from border to border it is trademarked;
• You can trademark your brand not only in one country but also on the continent, like, EU or USA.
• The first person, who trademarked brand, owns the rights to use it;
• You need to trademark your brand every 10 years;
• You can also trademark your brand logo(you should);

Will you trademark your brand?

What is Revelant market?

In competition law(a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies), a relevant market is a market in which a particular product or service is sold. It is the intersection of a relevant product market and a relevant geographic market. The European Commission(an institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU) defines a relevant market and its product and geographic components as follows.

There are relevant product market and relevant geographic market:

A relevant product market comprises all those products and services which are regarded as interchangeable or substitutable by the consumer by reason of the products' characteristics, their prices and their intended use;

A relevant geographic market comprises the area in which the firms concerned are involved in the supply of products or services and in which the conditions of competition are sufficiently homogeneous.

Companies should focus and follow both markets to be first in the market itself, grow and build the way to the success.

What are Bonds and how do they work?

Bonds can be a great strategy for your business if you need money to invest in the business.

What are Bonds?
A bond is a fixed income investment in which an investor loans money to an entity which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer.

How do bonds work?
Businesses may issue bonds directly to investors instead of obtaining loans from a bank when they need to raise money to finance new projects, maintain ongoing operations, or refinance existing debts.
The indebted entity issues a bond that contractually states the interest rate that will be paid and the time at which the loaned funds must be returned. The interest rate, called the coupon rate or payment, is the return that bondholders earn for loaning their funds to the issuer.

Does your company have bonds?

Choose Virtual Office for Your Company

Nowadays, renting luxury office not always is not smart and necessary. Business became global and international and for this reason it it time to think about new options. It is time for virtual office.

A virtual office is a working space created virtually with the aid of computers and other digital equipment, i.e. without using physical premises. The functionality of a virtual office can range from a simple call forwarding to a full virtual working space for many employees, equal to a real physical office.

A virtual office has a number of benefits and advantages over a traditional, physical office. These are as follows:

• Lower costs;

• Local presence;

• Prestige;

• Employee convenience;

• Better information management;

• Possibility to choose space with better internet connection;

• Staff will not be late because of traffics;

• Connect and work with employees, customers and business partners from all over the world;

• Benefits from being able to manage your time more effectively;

• A more productive work environment;

• More opportunities to hire part-time or contract workers;

• It helps you to be eco-friendly;

• You can hire more employees if you need;

• No need for relocation.

Cost of a virtual office is less than that of a traditional office. Although virtual office services may differ depending on the specific needs of each customer, they usually include the following aspects:

• Legal address

• Call, document, mail and e-mail forwarding

• Virtual working space

• Conference calls

Now you know what virtual office is, and how a virtual office can make your life easier as a business owner. When setting up a virtual office, it is important to remember that it might not be enough to provide a sufficient economic substance to your business, which is why it is important to maintain a balance between going fully virtual and leaving some economic activities in the real space. As the actual amount of economic substance required is very different between jurisdictions.

What is INC?

If you want to open your own company, the first thing you should do is to decide what kind of legal structure your company is going to have. INC is one of the options. Would you be better structured as a limited company? The more you know, the clearer your options will be.

What is INC?
Incorporation is the formation of a new corporation (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, sports club, or a government of a new city or town. This article focuses on the process of incorporation; see also a corporation.
INC stands for Incorporating and when a company has the letters “Inc" after its name, it means the company has been incorporated.

Your company also can use:

• Corp. - If a company uses it, then the company usually is incorporated, but may not be.
• LLC is an abbreviation that means the company is a limited liability company.
• Co. is an option that simply states the business is a company, and it may not be incorporated.

Why your company should be incorporated?
Incorporated company means that the company formally designated itself as a corporation under the laws of at least one state. The incorporated company must follow all laws pertaining to corporations. Inc. means that the company is set up for success with a solid legal basis.

P2P. When lender and borrowers meet

Business owners don’t let money to be static. They invest, earn, spend it. Finances always are in movement. One of possibility to invest and take a loan is Peer-to-Peer.

P2P lending (also known as social lending or crowdlending) is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.

Take a look on video from Mauldin Economics to find some facts

Traditionally, business owners submit applications for the loan from bank, funds or are looking for investors. With P2P loans, you can invest in borrowers with good credit ratings and bad credit ratings.

Some countries has P2P platforms when one side can find other side. Platforms connect the public to businesses in need of funding.

Forbes says that P2P lending takes 2nd place in a list of the best investments to make in 2018.

Some advantages of Peer-to-Peer lending are

• Easy, fast online application process and easy to open an investment account online

• Lenders can be individuals or organization

• Lower interest rates compared with banks

• Loans available for most of your needs

• No hidden fees in monthly payments and fixed interest rate

• No prepayment penalty if you have possibility to pay off the loan earlier

• You don’t have to provide collateral such as house or car. Loans are unsecured.

• The initial investment is low

• You can invest in many loans because number is not limited

• You can reinvest the payments you receive or withdraw the funds from your account

Have you ever tried P2P lending?