Adding shares to a company is a fairly simple process. To add shares, you need to complete the SH01 – Return of allotment of shares document, you then need to file this document with Companies House (this is free). The SH01 document outlines:
• How many shares are being added
• The value of these shares
• The share type
If your company is on the Companies Made Simple system, you can complete this process online via our site (this is also free). Simply select “Return of Allotment of Shares” from your company admin page:
Then enter the amount of shares that you wish to add and select “Submit”:
The request is then sent to Companies House where it’s normally accepted within 3 working hours (paper filing is normally processed within 5 days of Companies House receiving the document).
1. First you should record the issue of these shares via company minutes or a written resolution. This is for the company’s records and does not need to be filed with Companies House.
2. You should then draw up a Share Certificate for the new shareholder; this outlines how many shares they have. Again, this is for the company’s records and does not need to be filed with Companies House.
If a shareholder is receiving shares from another shareholder (instead of receiving new shares), the J30 stock transfer form needs to be completed. This document outlines who the transfer is between and how many shares have been transferred. Once again, this is for the company’s records and does not need to be filed with Companies House. You should also record the transfer of these shares via company minutes or a written resolution, and draw up brand new Share Certificates.
To let Companies House know about new shareholders or a share transfer, you need to file a Confirmation Statement (previously known as the Annual Return) with Companies House. Confirmation Statements are due on a yearly basis; however, you can file an early Confirmation Statement if you are keen for Companies House to know of the new situation. Otherwise you can wait until the next Annual Return is due.
I hope that answers any questions you may have. However, if you do have any questions, feel free to comment on this post.
This post was by Mathew Aitken at MadeSimple – Find Mathew on Google+