Transferring personal funds into my business account

[JoeG123]

I have a question regarding use of personal funds in a new business. Apologies if the answer is blindingly obvious, but I am young a new business owner so please excuse my naivety!

I registered my new business with companies house (private limited company) a few weeks ago (a dropshipping business) and have now decided on my amount of capital required (£2000). I am self funding this and I have the money in my personal account to use in my business. I have also recently set up a business account. Is it as simple as I just transfer the £2000 from my personal account to my business account with no formal paper trail, or do I need to invest the money in the business through some formal transaction such as the creation of new shares? I would like to simply transfer the money over but I am unsure if this requires some legal formality?

Many thanks in advance from a new member!

 

[Scalloway]

You can just pay the money into the company's account. It is probably better to put a note in your file that it is a loan.

 

[anonicee]

So I am assuming you are 100% shareholder, have you transferred £X for the shares?

If you want the company to owe you the £2k, put it as a loan. If you want it to be company money you can create the shares.

 

[JoeG123]

Yes I am 100% shareholder. I want it to be a loan, I am just wondering when you say 'put it as a loan', is there a formal way to document this loan or do I simply transfer over the money and write a note in my files that on X date I transferred X amount as an interest free loan to X company?

 

[anonicee]

You would write a note in your file yes, you would need to create a "Directors Loan Account" which is a virtual documentation of your loans and payments between you and your company

 

[MyAccountantOnline]

Yes I am 100% shareholder. I want it to be a loan, I am just wondering when you say 'put it as a loan', is there a formal way to document this loan ...

No just record it as a loan in the company accounting records.

... do I simply transfer over the money and write a note in my files that on X date I transferred X amount as an interest free loan to X company?

Yes that's fine.

 

[JoeG123]

Thanks for all your help