Authorised shares are the maximum number of shares your company is allowed to issue. They're a pool — they don't belong to anyone until they're issued.
You set this number when you register, and it's recorded in your Memorandum of Incorporation (MOI).
Issued shares are the ones handed to shareholders. Ownership is measured on issued shares only.
How many should you authorise?
We suggest 10 000. Increasing the number later means amending your MOI and filing the change with CIPC, so it's easier to start with room to grow.
An example
Two shareholders splitting the company 50/50:
The company authorises 10 000 shares at registration.
The shareholders issue 1 000 — 500 each.
9 000 shares stay unissued.
Each shareholder owns 50%, because only issued shares count towards ownership.
If a third shareholder joins later, the company issues more shares from the 9 000 already authorised. No MOI amendment needed.
One thing to watch: if a new shareholder ends up owning 5% or more, you'll need to update your beneficial ownership filing with CIPC.