Free Share Subscription

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Create Your Free Share Subscription

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Share Subscription

Create your Share Subscription



Create your Share Subscription

Where was your corporation incorporated?
Virginia


VABuilt for Virginia
Different states have different rules and regulations. Your Share Subscription will be customized for Virginia.



Remember: Before you print your final document, you need to select a Governing Law in order to create a document that is correct for your specific situation.
(Required)


Frequently Asked Questions
Where was the corporation incorporated?The corporation's jurisdiction of incorporation is the state in which the corporation was incorporated or the state in which the corporation was last continued. If you are unsure of your corporation's jurisdiction, check your articles of incorporation or corporate charter.


Your Share Subscription

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SHARE SUBSCRIPTION

TO:

_________________________ of _____________________________________________
(the "Corporation")

AND

The Directors
of _________________________

FROM:

_________________________ of _____________________________________________

I hereby subscribe for __________ _____________________________________________ shares in the capital stock of the Corporation at the price of $__________ per share and tender herewith the sum of $__________ USD in full payment of the subscription price for the shares.

I request that the shares be issued to me, registered in my name, and that a certificate representing the shares be issued to me and delivered to my address, as shown above.

The parties submit to the jurisdiction of the courts of the Commonwealth of Virginia for the enforcement of this Subscription. The parties expressly state that the English language is to be the choice of language for this Subscription.

IN WITNESS WHEREOF the subscriber has executed this Subscription on the ________ day of ________________, ________.



_________________________________________
_________________________

Share Subscription Information

Alternate Names:

A Share Subscription is also known as a:

  • Stock Subscription
  • Share Subscription Agreement
  • Stock Subscription Agreement
  • Subscription Agreement
  • Share Subscription Letter

What is a Share Subscription Agreement?

A Share Subscription Agreement is a written document that is used whenever new shares are sold by a corporation to a purchaser (i.e. a subscriber). When a person purchases shares (sometimes called stock) in a corporation, they become a shareholder (also known as a stockholder).

What are shares in a corporation?

Shares are units of ownership that are divided among a corporation's shareholders. The percentage of total shares owned by a shareholder can sometimes demonstrate the percent they own in the corporation. For instance, if a shareholder holds 70 out of 100 available shares in a corporation, the shareholder owns 70% of the corporation.

There are several terms used to describe shares in a corporation: voting, non-voting, common, and preferred shares.

Whether a shareholder owns voting or non-voting shares determines whether or not they are eligible to vote on resolutions at shareholders' meetings. For instance, voting shareholders are able to elect directors to manage the corporation.

The terms common and preferred refer to the class of the shares and deal with the share's value. Shareholders who own preferred shares (as opposed to common shares) are given a priority in terms of receiving a portion of profits (known as dividends). They are also given priority in the event of liquidation (i.e. the process of closing a business and converting assets into money).

Common shares are the most frequently held share class in a company, and a Share Subscription Agreement will generally involve the purchase of common class shares instead of preferred shares. It’s also important to know that most corporations will have common shares but not all will have preferred.

Who uses a Share Subscription?

Share Subscription Forms are typically used by:

  • The owners of a corporation (or another party capable of authorizing the sale of shares)
  • Individuals or entities who are purchasing shares from a corporation

Do I need a Share Subscription Agreement?

Corporations, individuals, or entities interested in purchasing shares in a corporation should use a Share Subscription Agreement whenever they need to record a share subscription between a corporation and a purchaser. Using an agreement is also a good way to record all the subscribers in the corporation and how many shares are available to be issued in the future.

What information is included in a Share Subscription?

A Share Subscription Agreement generally includes:

  • The name and address of the subscriber (the person, people, or entity purchasing the shares from the corporation)
  • The name and address of the corporation (or corporations) selling the shares to the purchaser
  • Details about the shares being sold (including the number of shares being sold, the class of share being sold, and the unit price for each share)

A separate Share Subscription Form should be used if more than one type of share is being sold. For instance, if you are selling 100 Class A Common Voting Shares as well as 400 Class B Common Non-Voting Shares, one Share Subscription should be used for the Class A shares and another for the Class B shares.

What is the difference between a Share Subscription and a Share Purchase Agreement?

Both a Share Subscription Agreement and Share Purchase Agreement (SPA) are used to record the sale of shares in a corporation. However, a Share Subscription Agreement is used to record the purchase of shares when a corporation is issuing its own shares as opposed to the shares being purchased from a shareholder, and a Share Purchase Agreement is used when shares are sold by a shareholder rather than from the corporation issuing its own shares.

In other words, a Share Subscription Agreement is a contract between an individual or entity and the issuing corporation, and a Share Purchase Agreement is a contract between an existing shareholder of the corporation and a buyer.

Related Documents:

  • Articles of Incorporation: papers that are filed with a government body in order to legally form a corporation
  • Share Purchase Agreement: an agreement used to outline the purchase of shares in a corporation between an existing shareholder and another individual
  • Share Repurchase Agreement: an agreement used to detail the repurchase of shares by the corporation from a shareholder
  • Shareholder Agreement: a contract that specifies the rights, responsibilities, and obligations of the shareholders of a corporation
  • Shareholder Loan: an agreement used to record a loan when a corporation borrows money from one of its shareholders
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