The shares of a limited company can be transferred from person to person at any time and this can be done by a shareholder either selling some or all of their shares to another person or by gifting these to someone else whereby no financial transaction takes place.

121 Company Formation offers a transfer of shares service which includes ensuring that all the necessary paperwork has been correctly completed and then we submit this on your behalf to Companies House. The whole process usually takes between 24 and 48 hours.

What does a transfer of shares involve?

To transfer shares, form J30 must be completed. Full details of the company must be entered on this stock transfer form before being signed by the transferor of the shares and the transferee (the person receiving the shares). In some cases the shares will be transferred to a new shareholder whilst in other cases, shares may be transferred between existing shareholders, i.e. between family members.

In either case the following information must be entered on the stock transfer form for the person receiving the shares:

•   Full name
•   Contact address – this will be displayed on Companies House records and the share certificate
•   The class, number and value of the shares being transferred

If the value of the shares being transferred exceeds £1000 then the person buying the shares is required to send the stock transfer form to HMRC who will calculate the amount of Stamp Duty payable. Again, 121 Company Formation will advise you of this process at the time of receiving your order.

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

Meanwhile, you can use the new set of share certificates, your amended mem & arts, and your original form J30 form to prove the share transfer as well as any private sale contracts you may have drawn up.

•   Filing a confirmation statement to record the share transfer(s) based on request.
•   The new set of documents are sent electronically. Printed set documents will be made available at a cost fee.

121 Company Formation also offers a confirmation statement service to assist you to keep the company’s records at Companies House up to date.

How can I order the transfer of shares service and how much does this cost?

You can order this service directly from our website or, if you would prefer to seek further advice, please email us at [email protected]

The cost of the transfer of share service is £39.99.