This guide explains:
What is a share split and why is it needed?
A share split divides existing shares into a larger number of shares without changing their total value. The aggregate nominal value stays the same - only the nominal value per share reduces.
Example:
1 share with a £1 nominal value could be split into 10,000 shares with a nominal value of £0.0001 each. The total nominal value remains £1.
Why it's useful:
A share split gives you a larger number of shares to work with, making it easier to issue practical numbers of shares when fundraising or setting up an option scheme.
For example, if your company is valued at £1,500,000 but has only 10 shares in issue, each share represents £150,000 of value (£1.5m ÷ 10). This means you can only sell shares in £150,000 increments.
You may instead want a lower share price, such as £15 or £1.50 per share.
At £15 per share, an investor wanting to invest £10,000 could buy 666 shares (£9,990), leaving £10 unallocated due to rounding.
At £1.50 per share, they could buy 6,666 shares (£9,999), leaving only £1 unallocated.
The lower the share price, the finer the granularity, and the less money is left over due to rounding.
The same principle applies to option schemes, where having a larger number of shares can make it easier to allocate options in practical amounts.
For more information on this, see our SH02 filing guide.
How to process a share split on FounderCatalyst
Walkthrough of creating the SH02 form in the platform
1. Go to the Cap Table section
From the left-hand menu, select Current Cap Table.
2. Click “Split Shares”
Use the Split Shares button in the top-right corner.
3. Enter the split ratio
Input the ratio in the format 1 : X.
i.e. 1 : 100, 1 : 1000, etc.
The system multiplies each shareholding automatically.
4. Confirm & review
The cap table updates instantly.
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Review all shareholder holdings
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Confirm the split looks correct
5. Receive your SH02
Once the share split has been completed, FounderCatalyst will automatically prepare a ready-to-file SH02 using the updated share information.
The SH02 will be sent to you by email.
The platform saves a copy of the SH02 in the 'Company general information' folder within the 'Companies House Filings' folder.
6. Submit the SH02 to Companies House
Submit the SH02 to Companies House to officially record the share split.
Important: Completing the share split on FounderCatalyst updates your cap table, but the share split is not formally recorded at Companies House until the SH02 has been submitted.
How to file an SH02 with Companies House
Once you have completed the share split on FounderCatalyst, you need to submit the SH02 to Companies House to formally record the change.
1. Pass an Ordinary Resolution
Shareholders must approve the share split with a standard resolution (signed by at least 50% of shareholders). Click here to access the resolution.
2. Complete the share split on FounderCatalyst
Once the split has been processed, FounderCatalyst will prepare the SH02 based on the updated share structure.
3. Receive the SH02 by email
We will send you a ready-to-file copy of the SH02.
4. Submit your SH02
File the SH02 with Companies House to formally record the share split. Click here to submit.
Important: FounderCatalyst prepares the SH02 for you, but you are responsible for submitting it to Companies House.
