Allocation of shares

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 which 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 new shares. For example, the company can sell shares to new investors or existing shareholders to raise financing.

Shareholders should always be aware that, as well as enjoying the benefits of any dividends paid to them, each shareholder will have a certain obligation should the company fail or be put into liquidation.

The 121 Company Formation Allocation of New Shares service ensures the process is completed correctly and that your company’s Companies House records are kept up-to-date.

HOW IT WORKS

  • Order our Allocation of Shares service and will contact you to attain the required information
  • We will complete the SH01 form (Return of Allotments form) and submit it to Companies House
  • Upon approval, we will send you an electronic copy of your new share certificates, memorandum, and articles of association.
The process is typically completed within 24-48 working hours.
 

PLEASE NOTE

The share transfer is only updated at Companies House once a Confirmation Statement is filed. We always advise submitting a confirmation statement online in order to fully reflect a share transfer, especially if the share transfer is required to open a business bank account or for another immediate purpose.

In the interim, you can use the new share certificates, your amended Memorandum & Articles of Association, and your original J30 form to prove the share transfer and any private sale contracts you may have drawn up.

  • Filing a confirmation statement to record the share transfer(s) based on request.
  • The new documents are sent electronically. Printed copies can be provided at an additional cost.

Be sure to keep all your company’s records at Companies House up to date with our Confirmation Statement service!

PURCHASE THE TRANSFER OF SHARES SERVICE

For just £49.99 purchase the Allocation of Shares service through our website or for further information email us at: [email protected] .

FREQUENTLY ASKED QUESTIONS

Each limited company must have at least one shareholder. There is no limit to the maximum number of shareholders.
No, there is no limit to the maximum number of issued shares that an individual can hold. In the case of many smaller companies, one shareholder may hold 100% of the issued share capital.
No, a limited company can issue just one share and, providing that you intend to maintain sole ownership of the company, this will suffice. If you wish to bring other shareholders, new investors, family members, or business partners on board, you can issue as many shares as you wish in order to allocate each shareholder a value in the company.
Typically, 100 shares are sufficient for a private limited company.
Yes, this is permitted for companies that are registered in England and Wales (different laws apply to companies registered in Scotland). This includes transferring shares to your children. However, if you would also like your child to become a director of the company, they must be over the age of 16.

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