Short answer
For a single owner, 100 ordinary shares of £1 each is a common and workable choice. Issuing more shares at a lower nominal value, such as 1,000 at 1p, gives finer percentages for future splits, investors or share transfers.
Company formation
How many shares should I issue when forming a company?
Most small companies issue 100 ordinary £1 shares or 1,000 at 1p. Why the number matters for dividends, investment and future share transfers.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityWhat this means for your company
For a single owner, 100 ordinary shares of £1 each is a common and workable choice. Issuing more shares at a lower nominal value, such as 1,000 at 1p, gives finer percentages for future splits, investors or share transfers.
01
Why the number matters later
02
Structure before people join
Why the number matters later
Shares define ownership percentages, dividend allocation and voting. With 100 shares you cannot give someone 0.5% without issuing more, and small equity slices for early staff or advisors become awkward. With 1,000 or 10,000 shares, granular splits are easy.
Nominal value is the amount unpaid liability attaches to, not what the shares are worth. 1,000 shares at 1p is £10 of share capital and is perfectly normal for a startup.
Structure before people join
Decide the split before a co-founder, spouse or investor comes in, because issuing new shares later dilutes everyone and transferring shares can create tax charges. Founders should also consider whether shares are subject to vesting or good leaver provisions in a shareholders' agreement.
If you plan SEIS or EIS investment, keep the structure clean: ordinary shares with no preferential rights, because preference shares can disqualify a round.
Before you act
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
Local help
Talk to a limited company accountant near you
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
How many shares should I issue when forming a company?: questions directors ask
Do I have to pay for the shares?
Yes, the nominal value is owed to the company. £100 of share capital means £100 paid in or shown as unpaid.
Can I issue more shares later?
Yes, subject to the articles and shareholder authority, but it dilutes existing holders.
Does more share capital look better?
Rarely. Lenders look at reserves and trading history, not nominal share capital.
What records are needed for how many shares should i issue when forming a company?
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
How much does help with how many shares should i issue when forming a company cost?
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Can you take over how many shares should i issue when forming a company from another accountant?
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Can how many shares should i issue when forming a company be handled online?
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
Which accounting software works best for how many shares should i issue when forming a company?
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
What tax deadlines matter for how many shares should i issue when forming a company?
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
Is this how many shares should i issue when forming a company guidance personal tax advice?
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Organised, explained, on schedule.
Clear scopeDeadline visibilityHuman support
Check the current rules
Use official information as your reference point.
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.