What are company shares and how do I transfer them?

Every limited company must have at least one share, because shares are used to define who owns the company. If two people have one share each, they both own 50% of the company. Shareholders (the people who own shares) earn a proportion of the company’s profits based on how many shares they own.

There are a few reasons why shares might need to be transferred. What is important when transferring shares, is that the right process is followed. If it isn’t, then the transfer might not be valid, which can cause all sorts of problems later on!

Read our guide to making a valid share transfer, and learn more about our online accounting services for limited companies.