The SH01 form notifies Companies House when new shares are added to a private limited company. It’s also known as the ‘return of allotment of shares’.
You only need to fill in an SH01 form when reporting changes that occur after incorporation. This is due to the appointment of shareholders and division of shares involved in the process of merging a private limited company.
For instance, a business formed with one share can submit an SH01 form and add the number of shares. The name of the shareholder is only published after the confirmation statement is filed with Companies House.
When do you need to submit the return of allotment of shares?
An SH01 form needs filing with Companies House within one month of the allotment of shares.
This ensures Companies House has an accurate, up-to-date record of your shareholding’s structure and how the shares divide company ownership.
What information is required when filling in an SH01 form?
It’s best to have all the necessary information before filling in a form SH01. Here’s what you’ll need:
- The registration number of your company
- Types of allotted shares (for example, preference/ordinary)
- Company name
- The number of shares
- Allotment date
- Statement of capital
- The nominal value of shares
- Currency of the shares (e.g. dollars, pounds, euros, and so on)
- Amount of shares, paid or unpaid
- Authorising signature
There’s no need to include the new shareholder’s information in the form, only the shares. The next time you submit a confirmation statement, you can include the shareholder’s information.
Allotting new shares to different share classes
If a company has one class of shares, it’s the director’s responsibility to allot new shares. An agreement needs to be reached on the shares and filling in the relevant paperwork.
However, things can get more complicated if your company has different classes of shares. A director needs permission to create new shares.
They can grant permission through a special resolution, agreed upon by the current shareholders, or written as part of the articles of association.
Before issuing new shares, you should check the existing shareholder agreements and articles of association to clarify whether the current shareholders have a right to new shares over a new shareholder.
SH01 form – conclusion
In summary, if a company seeks funds from investors to stay afloat, it’ll need to fill in an SH01 form.
This fundamental document is a sure-fire way to generate some much-needed funds to help the company expand and improve the conditions for increased productivity. But, it’s like selling a portion of itself for ownership by another person.
We know that filling in a Companies House form SH01 can be confusing, especially if you have other, equally pressing business matters.
In which case, reach out to Accountants East London – our experienced team of accountants will help you with this and other accounting tasks, without breaking the bank.