How a company can be employee-owned through individual share ownership.
If you want your company to be employee-owned (that is, all, a majority or a significant part of the company is to be owned by its employees), this will involve your employees acquiring shares personally (and being issued with a share certificate as evidence of their holding), so that they have direct ownership of part of the company.
Although trust ownership is simpler to set up and operate than individual share ownership, you may prefer the latter if, for example, you place a high value on personal investment by employees or the prospect of employees benefitting from capital growth if company performs well.
Our guide to becoming an employee-owned company compares individual with trust-based employee ownership.
There are two tax-advantaged employee share schemes which can make it significantly easier financially for employees to acquire shares in their company: