Share capital
What it is
The total value of shares a company has issued to its shareholders. Most UK limited companies incorporate with £1 in share capital (one £1 ordinary share). The amount does not limit what the company can earn, borrow or spend.
Why it matters
Share capital determines ownership percentages and dividend entitlement. Changes to share structure — issuing new shares, transferring shares — must be reported to Companies House and are visible on the public register.
Common mistake
Thinking a higher share capital signals more credibility. For most small UK Ltds, £1 is entirely normal. A higher amount only matters in regulated industries that require minimum paid-up capital.
Official source
GOV.UK — Shares and shareholders ↗Related
Disclaimer
General educational guidance only — not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: June 2026.