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11 December 2018 You are not logged in. Login now.

How do I add a shareholder to my company?

adding shareholdersIf you want to add a new shareholder without transferring existing shares from one person to another you simply need to complete form SH01. Under the Companies Act 2006 companies no longer have an ‘authorised share capital’ that consists of shares that have not been issued. Please see the following guide for more information on the difference between issued shares and authorised share capital. Therefore shares must be issued by completing form SH01 at Companies House.

For example-

Your company has an existing issued share capital of 100 x £1 shares
There are currently two share holders holding 50 x £1 shares each = 100 x £1 shares
You want to add a third shareholder with an equal share holding

Complete form SH01 issuing an additional 50 shares to the new shareholder. Record the issue of shares on a written resolution or company minutes for your own company records. Send the form SH01 (keep a copy for your records) to Companies House.

The company now has 3 shareholders holding 50 x £1 shares each

If your company has issued all of the shares from the authorised share capital then you will need to create new shares first or transfer shares from an existing shareholder to the new shareholder.

For an informative guide on completing form SH01 please visit the following web page – For a guide on completing form SH01 please visit teh following page - Completing form SH01