Editing Henry Royce (section)

==Partnership with Rolls==
{{main|Rolls-Royce Limited}}
[[File:Royce Limited 1910.jpg|thumb|alt=Stock certificate of the Royce Limited for 25 Preference Shares of £1 each, issued 7 April 1910, signed in original by Ernest Alexander Claremont as President. The company was incorporated on 4 June 1894 by Sir Frederick Henry Royce under the name of F. H. Royce and Co, Limited. On 17 October 1899 the company was reorganized as Royce, Limited. |Stock certificate of the Royce Limited for 25 Preference Shares of £1 each, issued 7 April 1910, signed in original by Ernest Alexander Claremont as President. The company was incorporated on 4 June 1894 by Sir Frederick Henry Royce under the name of F. H. Royce and Co, Limited. On 17 October 1899 the company was reorganised as Royce, Limited.<ref>The Stock Exchange Year-Book 1912, Publishers Thomas Skinner & Co., London, p. 1976</ref>]]
[[File:MOSI-11 Gas Engines 5409.JPG|thumb|Engine and gearbox of Royce's second car, now in [[Museum of Science and Industry (Manchester)|MOSI]], Manchester]]

The third Royce car had been sold to one of the other directors, Henry Edmunds.<ref name=Evans/> Edmunds was a friend of [[Charles Rolls]] who had a car showroom in London selling imported models and showed him his car and arranged the historic meeting between Rolls and Royce at the newly opened [[Midland Hotel (Manchester)|Midland Hotel]], Manchester, on 4 May 1904. In spite of his preference for three- or four-cylinder cars, Rolls was impressed with the two-cylinder Royce 10. In an agreement reached on 23 December 1904 it was agreed that Royce would exclusively supply C.S. Rolls and Co with a [[Rolls-Royce 10 hp| 10 hp two-cylinder]], with the range expanding to include [[Rolls-Royce 15 hp| 15 hp three-cylinder]], [[Rolls-Royce 20 hp (1905)| 20 hp four-cylinder]] and [[Rolls-Royce 30 hp| 30hp six-cylinder]] models. All were to be as badged as Rolls-Royce, and were sold in framed chassis form for the customer to arrange his own body supplier, with London coachbuilder [[Barker (coachbuilder)| Barker & Co.]] recommended.

From its establishment Rolls-Royce didn’t produce complete cars until the introduction of the [[Rolls-Royce Silver Dawn| Silver Dawn]] in 1949. Instead, they produced a framed chassis with engine, gearbox and transmission, to which a body was fitted by a variety of coachbuilding companies, including [[Barker (coachbuilder)| Barker & Co.]], [[Hooper (coachbuilder)| Hooper]], [[H. J. Mulliner & Co.]], [[Park Ward]] and [[James Young (coachbuilder)| James Young]].

The first Rolls-Royce cars, the [[Rolls-Royce 10 hp| 10&nbsp;hp]], [[Rolls-Royce 15 hp| 15&nbsp;hp]], [[Rolls-Royce 20 hp (1905)| 20&nbsp;hp]] as well as the engine for the [[Rolls-Royce 30 hp| 30&nbsp;hp]] were unveiled at the [[Paris Motor Show|Paris Salon]] in December 1904.<ref>Reese, p. 85</ref> As the new three-cylinder 15&nbsp;hp engine was not ready the chassis was incomplete. The 10&nbsp;hp was similar to the earlier Royce car, but with further design and mechanical improvements. In 1905 Royce designed a [[Rolls-Royce V-8 (1905)| V-8]] but only three were produced, of which one was sold before later being taken back by the company.

In 1906 Rolls and Royce formalised their partnership by creating Rolls-Royce Limited, which was registered on 15 March 1906 with capital of £60,000 with Royce appointed chief engineer and works director on a salary of £1,250 per annum plus 4% of the profits in excess of £10,000.<ref name=Reese_Pg72>Reese, p. 72</ref> In comparison Rolls received £750 per annum and 4% of the profits.<ref>Reese, p. 91</ref> Royce thus provided the technical expertise to complement Rolls' financial backing and business acumen. 
To increase the company’s capital to £200,000 it was floated on the Birmingham Stock Exchange on 11 December 1906 with £100,000 of shares made available to the public to acquire the business of C.S. Rolls & Co.<ref name=Reese_Pg72/> However by the day before the flotation it was apparent that only £41,000 of the required minimum subscription of £50,000 shared had been subscribed to.<ref name=Reese_Pg72/> off these Royce had purchased £10,000. The issue was resolved by company secretary John De Looze rushing from Manchester to Harrodgate to see wealthy businessman Arthur Harry Briggs, who had purchased the first “Light Twenty” car. Briggs agreed to purchase  £10,000 worth of shares and in return was given a seat on the board. On 9 January 1907 it was announced that £63,000 had been raised.<ref name=Reese_Pg72/>