What is Form SH01?
A form SH01 is used to notify Companies House when new shares are allotted in a private limited partnership. This is also known as the "Share Allocation Return".
An SH01 form is a document that you must submit to Companies House every time you have new shares assigned to your company! You will tell Companies House how many new shares you are issuing when they were allotted, and your newly updated capital status.
You can issue new shares to investors as part of a funding round or simply issue shares to your co-founders and team members. Note that you do not need to update Companies House through SH01 when making a share transfer. Instead, you must provide this information when you submit your annual certification statement.
Do I have to fill out an SH01 form?
All you need to do is submit an SH01 form to report changes that occur after you are onboarded. Because even when establishing a limited liability company, the division of the shares and the appointment of shareholders are at stake.
There can be several reasons for assigning new actions, such as Bringing family members into your business. It's also a way to get funding for a business. A limited liability company can issue new shares in exchange for investments by new shareholders.
When should I submit my SH01 form?
A Form SH01 must be submitted to Companies House within one month of the allocation of shares. This ensures that Companies House always has an accurate record of its shareholder structure and the division of ownership of the company by shares.
What information is required for an SH01 form?
It is a good idea to gather all the information you need to fill out the form before you begin. The SH01 form generally requires:
● Company Name
● Your company registration number
● Type of shares allocated
● Issue date
● The currency of the shares is, for example, pounds sterling or euros.
● Number of shares
● The par value of the shares
● Paid or unpaid amounts per share
● An updated financial account
You do not have to enter the details of the new shareholders on the SH01 form, only the shares themselves. The shareholder information is included the next time a confirmation is sent. You can pre-approve if new shareholders would like to register with Companies House earlier.
Allocation of the new shares to different share classes
A director is generally empowered to transfer new shares if the company has only one class of shares. This is a simple case where the measures are agreed upon and the required documents are filled out.
However, if your company uses different classes of shares, things get a little more complicated. A director can still create new shares but must be authorized to do so. Your consent is given in writing in accordance with the Articles of Association or can be given by a special resolution approved by the existing shareholders.
The articles of association and existing shareholder agreements must also be checked before new shares can be issued. This is to check whether existing shareholders are entitled to new shares from a new shareholder.
We know running a business can be confusing. Find out how our online accountants can help you by calling 02085718826 or getting an instant quote for online accounting services.