What is an issue of shares?

Picture this: a company's growth surges as new shares come into play. These precious stakes are granted to individuals, whether they're long-standing supporters or fresh investors. To acquire these valuable assets, a monetary contribution is swiftly exchanged, fueling immediate momentum

What is the issue of shares process?
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The excitement begins as eager shareholders-to-be submit their applications and payments to secure their stake in the company. With the green light from the directors, existing shareholders graciously relinquish their 'first refusal' privilege through a special resolution. This paves the way for the directors to officially give the nod to the share issuance, promptly updating the company's records, handing over the coveted share certificates, and dutifully filing the allotment details with Companies House.
How does this service work?
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  • Email us, complete the short application form, checkout, and pay.
  • We will email you if we require additional information about your issuance.
  • You will receive digital documents in 2-3 working days by email, including the application letter, board resolution, written special resolution, and share certificate(s).
  • Once the documents have been signed, let us know by email and send a copy of the special resolution to Companies House.
  • We will then file the necessary form at Companies House.
  • If required, we will file a confirmation statement to report the recipients of the new shares publicly. This service can be added during the order process.

Frequently Asked Questions

​How long does the issue of shares process take?
An issue of shares usually takes 2-3 working days to complete. This includes the drafting of the documentation, the signing of the documents by the relevant persons, and the filing changes at Companies House. A confirmation statement can optionally be submitted afterwards to immediately show publicly who holds the new shares.

What details do I need to provide to issue new shares?
You will need to provide us with your company name, registration number, and authentication code, together with the following information about your issuance:
  • Name and home address of the shareholder(s)
  • Number of shares to be allotted to the new shareholder(s)
  • Amount paid by the new shareholder(s) for the shares
  • The next share certificate number we should use
If a confirmation statement has also been purchased with the order, we’ll also need you to confirm to us via email the date the documentation was signed.
If you are unsure about any of the above points, our team of company experts will be pleased to assist.

Is an allotment of shares the same as an issue of shares?
No. Whilst the words ‘issuance’ and ‘allotment’ are nowadays used interchangeably, they are technically different parts of the process. The issuance refers to the creation of the new shares, whilst the allotment refers to their allocation to the new shareholder(s). The introduction of the Companies Act 2006 means the issuance and allotment takes place almost simultaneously, hence the distinction between them is now less significant.

What classes of shares can be issued with this service?
Any class of shares can be issued with this service, provided that the company’s articles of association make provisions for shares in that class. If your articles do not support multiple classes of shares, email [email protected]

What are pre-emption rights and how do they affect share issues?
Pre-emption rights are the right of ‘first refusal’ that existing shareholders have for any new shares being issued. When new shares are to be issued, they must first be offered to those existing shareholders.
The existing shareholders have the option to either buy the new shares themselves (in proportion to the share capital they already own in the company) or waive their right to pre-emption and thus allow the shares to be issued the new holder(s) as originally planned.
The Companies Act 2006 provides automatic ‘statutory’ pre-emption rights for all companies, unless different restrictions are inserted to the company’s articles or where the statutory pre-emption rights are disapplied entirely.

Are new share certificates provided with this service?
Yes. New share certificates are included with this service and will be dispatched with the rest of the issue of shares documentation, together with instructions on how to execute them.
​When will Companies House record the details of a share issue on public record?
The necessary form will report the issue of shares publicly on Companies House and must be submitted within 30 days of the issuance taking place. 
Details of who holds the new shares will then be included on the next confirmation statement that is submitted. You don’t normally need to submit a confirmation statement right after an issuance takes place, as you can simply wait until the company’s next confirmation statement becomes due and report it then.
However, it is considered good practice to submit one after an issue of shares takes place. This ensures the public record is up to date with the most recent details regarding the company’s ownership. This is particularly important when opening a bank account or applying to lenders.

How do I include a confirmation statement filing with my order?
If you wish the details of who holds the new shares to show on Companies House straight away, you can add the Confirmation Statement Service to your order, when completing the short application form.

How do I update my People with Significant Control (PSC) at Companies House?
You can purchase our People with Significant Control (PSC) filing service if your PSCs need to be updated (due to this share issue) at Companies House. 
Email us at [email protected]
Is there a limit to the number of shares that can be issued at any one time?In general terms, there is no limit to the number of shares that can be issued. However, some companies may be limited in the total number of shares that can be issued – for example, companies with multiple classes of shares or those with provisions in their articles specifying a maximum number of shares permitted.

When do I need to pay for the new shares?
Generally, the recipient of the new shares should pay for them when they first apply to the company for their issuance. Most companies require full payment for new shares before they can be issued, although some companies’ articles are modified to allow partial or no payment, on the basis they will be paid later.

What is Stamp Duty and how is it paid?
Stamp Duty on shares is a tax that is paid by a person buying shares from someone else - known as a share transfer. It does not apply to new issues of shares. It is usually payable when the consideration (amount paid) for the transfer is over £1,000. Payment should be made directly to HMRC within 30 days (late penalties apply).
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