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.
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.
Be sure to keep all your company’s records at Companies House up to date with our Confirmation Statement service!
For just £49.99 purchase the Allocation of Shares service through our website or for further information email us at: firstname.lastname@example.org .
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