Issue of Shares

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Updated on : 16-Sep-2024   02:08 PM GMT | 4 min read

Make changes to your private limited company

Issue of shares means allocating new shares to the shareholders (either new or existing) by the company. Company can issue shares to both individuals as well as corporate bodies. In order to issue new shares to the shareholders, you need to fill SH01 form and file it to Companies House along with the required documents. To update the details of issued shares in the Companies House register, it is essential to file a confirmation statement. This ensures that the register reflects the most accurate information about the company’s share structure.

Company issue shares for different reasons which are as follows –

1. To attract new investors & directors as compensation for their labour or monetary investment.
2. In order to repay the borrowings of the company.
3. To show the level of personal investment at the start and personal investment made later on.
4. Distribution of shares to the staff members in order to encourage their investment & loyalty.

Note - Issuing of shares is a complex procedure. It is far more than just filling a form and sending it to Companies House.

Declarations Made to Companies House

It is mandatory for a company to declare companies house about the changes they made to their company’s share structure and a statement along with the following information –

• Total number of shares
• Total value of shares
• How many shares have been paid or not paid for.

Note - It is applicable on both ordinary as well as preference shares.

In addition to it, you need to declare the following information about each type of share –

1. Rights that come with the share.
2. How many shares are issued by the company?
3. Total value of shares (excluding any additional cost)

Our experts can take care of all these things, so you don’t have to worry about it as we ensure that we will do this by following all legal practices perfectly.

Requirements for Issue of New Shares

When you issue new shares in your UK Company, you have to pass a special resolution in the meeting with company’s shareholders and directors. You also need to update this information to the Companies House. A special resolution is needed to be passed by the company in the following scenarios –

1. In case company make changes to the number of shares and their total value.
2. In case company make changes in the distribution of shares.
3. In case company cancel any of its shares.
4. In case company changes their shares into other currencies.

Note – Make sure that you must update Companies House within one month in case you are issuing more shares in your company whereas in case you are making above mentioned changes to your share structure, you need to inform and update company’s house within next 21 days.

How FinacBooks help in Issuing of Shares?

FinacBooks is a leading UK portal providing accounting, finance & taxation services to freelancers, contractors, consultants and small businesses. We are having more than 10 years of experience helping small businesses in issuing shares to the shareholders or corporate bodies. We will guide you through the entire process of issuing shares. To avail the best deals on issuing of shares, kindly call us at 03300886645 or you can also e-mail us at business@finacbooks.com.