When a limited company is incorporated, it must issue, or allocate, at least one share to one shareholder. However, most limited companies have many more shares in issue and these are allocated by agreement of the relevant parties, i.e. those who are, or will be, the majority shareholders.
As well as the shares allocated at the time of incorporation, limited companies can also issue further new shares if, for example, they are seeking to raise finance from either new investors or existing shareholders, either of which can be an individual or a corporate entity.
Shareholders should always be aware that, as well as enjoying the benefits of any dividends paid to them, each shareholder will also have a certain obligation should the company fail or be put into liquidation.
121 Company Formation offers an allocation of new shares service to ensure the process is carried out correctly and that Companies House are informed
Once an order has been made, with the required information for the share allocation, we will complete a return of allotments via form SH01 to Companies House. Upon approval, we will release an electronic set of new share certificates and memorandum and articles of association and form SH01.
The process can take up to 24-48 working hours.
The allotments of shares will not be updated with Companies House only when you submit a confirmation statement. If share issues are needed to open a business bank account or another immediate purpose, we will recommend filing a confirmation statement.
Meanwhile, you can use the new set of share certificates, your amended mem & arts, and your original form SH01 to prove the share allocation, as well as any private sale contracts you may have drawn up.
121 Company Formation also offers a confirmation statement service to assist you to keep the company’s records at Companies House up to date.
You can order this service directly from our website or, if you would prefer to seek further advice, please email us at
The cost of the allocation of shares service is £49.99.
Order online, call or livechat with our friendly team to complete your order