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Increase share capital from 1 to 100

What needs to be done

Scenario -  sole director sole shareholder with 1 share being 100% share capital. The shareholder wants to increase the share capital to 100 shares but retain the 100 shares so still owning the 100%.

would the process be - colony resolution to increase the shares. SHO1 form with companies house to increase capital. Company sells shares to individual.

as the shareholder owns 1 share being 100% would it be possible for the company to sell the additional shares at  £1 each as the shareholder owned 100%?

would there be any employment Related securities issues? Stamp duty issues?

many thanks 

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By Ruddles
22nd Oct 2018 21:57

FFS

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23rd Oct 2018 08:16

Its really not that complicated. Do SH01-issue 99 new shares. Yes you should have a resolution of a meeting covering it, but in a one man band thats a formality.

Job done.

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By Ruddles
to andyjdicker
23rd Oct 2018 09:59

Alternatively, just re-designate the shares as 1p shares.

Job done.

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By Ruddles
to Tax Dragon
23rd Oct 2018 09:58

But that may be of no relevance in this case.

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to Ruddles
23rd Oct 2018 10:06

Doesn't "maybe not" mean "maybe"?

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to Tax Dragon
23rd Oct 2018 11:27

If the individual owns 100% of the company before the share issue, and 100% of the company afterwards, what is the value of the shares that have been issued?

It's a nothing. A non-event. I wouldn't even bother reporting it, even if I thought the minutes didn't go far enough to support not reporting it.

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to Portia Nina Levin
23rd Oct 2018 12:20

Portia Nina Levin wrote:

If the individual owns 100% of the company before the share issue, and 100% of the company afterwards, what is the value of the shares that have been issued?

Somewhere between 99% and 100% of the value of the company, in the OP's case.

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By Ruddles
to Portia Nina Levin
23rd Oct 2018 12:44

Portia Nina Levin wrote:

If the individual owns 100% of the company before the share issue, and 100% of the company afterwards, what is the value of the shares that have been issued?

Depends on how much he pays for them

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to Ruddles
23rd Oct 2018 12:48

Agreed. I'm wondering though why I let myself get sucked into this 5h1t.

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to Portia Nina Levin
23rd Oct 2018 12:53

The OP specifically asked about ERS.

"Job done" was over-simplifying - and ignored that part of the question.

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to Ruddles
23rd Oct 2018 12:55

Ruddles wrote:

Depends on how much he pays for them

Not really, if you express it as being between 99% and 100% of the value of the company, as someone did above.

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By Ruddles
to Tax Dragon
23rd Oct 2018 14:01

Between 99% and 100% of what? "What" depends on the amount paid for the shares.

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23rd Oct 2018 17:01

Best increase to 120 so that if he wants to give away 1/3 or 1/6 or 1/8 of his holding you don't have to go through all this again!

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to Vaughan Blake1
23rd Oct 2018 17:54

On the subject of gifting, it's worth knowing HMRC's view (irrespective of PNL's contempt for that) as it applies to such matters. Scroll down from the previous link to find it at ERSM40070.

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