When your UK Limited Company<\/strong> needs more capital to expand, or when you want to bring in a new partner without someone else “selling” their stake, you issue new shares<\/strong> (allotment). This process increases the total number of shares in the company and can “dilute” existing owners. For Arab entrepreneurs, issuing shares correctly is vital for maintaining clear legal equity and professional investor relations.<\/p>\n In this guide from Eteform.com<\/strong>, we explain the legal mechanics of share allotment in 2026.<\/p>\n The process generally follows these steps under the Companies Act 2006:<\/p>\n Decide the “Nominal Value” (e.g., \u00a31) and the “Premium” (e.g., \u00a399) if the company is valued higher. The total price is what the new shareholder pays the company.<\/p>\n Eteform provides professionally drafted digital share certificates for the new holders.<\/p>\n We submit form SH01 electronically. This updates the “Statement of Capital” on the public record, showing the new total share count.<\/p>\n A: Yes. If the new issue changes who is a “Significant Controller” (>25%), the bank will need to verify the new holder’s identity.<\/p>\n Q: Can I issue shares for “services” instead of money?<\/strong><\/p>\n A: Yes (Non-cash consideration), but you must have a formal valuation and report this clearly on form SH01.<\/p>\n Q: Can I issue a different “Class” of shares (e.g., Class B)?<\/strong><\/p>\n A: Yes, if your Articles allow it. This is often used to give partners dividends without giving them full voting power.<\/p>\n<\/div>\n Issuing shares is a sign of a healthy, growing company. Do it right, and you build a solid foundation for your future global empire. <\/p>\n Ready to bring in new investors?<\/strong> Let Eteform Handle Your Share Allotment<\/a> and legal filings today.<\/p>\nWhy Issue New Shares?<\/h2>\n
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The Legal Procedure for Share Allotment<\/h2>\n
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How to Issue Shares with Eteform (How-To)<\/h2>\n
Step 1: Determine the Price<\/h3>\n
Step 2: Prepare Share Certificates<\/h3>\n
Step 3: Digital Filing (SH01)<\/h3>\n
Table: Allotment vs. Transfer of Shares<\/h2>\n
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\n \nMetric<\/th>\n Issuing New Shares (Allotment)<\/th>\n Transferring Shares<\/th>\n<\/tr>\n<\/thead>\n \n Source of Shares<\/td>\n Created fresh by the company<\/td>\n Sold by an existing owner<\/td>\n<\/tr>\n \n Payment Goes To<\/td>\n The Company Bank Account<\/td>\n The Seller’s Personal Account<\/td>\n<\/tr>\n \n Total Shares<\/td>\n Increases<\/td>\n Remains the same<\/td>\n<\/tr>\n \n Stamp Duty<\/td>\n \u274c Usually No<\/td>\n \u2705 Yes (if > \u00a31,000)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Frequently Asked Questions (FAQ)<\/h2>\n
Conclusion: Fueling Your Business Growth<\/h2>\n