This guide explains:
What is a Share Split?
A share split increases the number of shares in a company by dividing existing shares into multiple new ones. The total value of each shareholder’s investment stays the same - only the number and nominal value of each share changes.
Example:
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A 1:10 share split turns every 1 share into 10.
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A shareholder holding 100 shares would then hold 1,000 shares.
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The value of their holding remains unchanged.
Why Carry Out a Share Split?
Companies typically carry out a share split to:
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Reduce the nominal value per share
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Increase the number of shares available (useful before fundraising)
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Allow more granular investment amounts
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Improve the clarity and investor-friendliness of the cap table
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Prepare for creating an option pool
Note: To officially complete a share split, you must notify Companies House using form SH02.
What is an SH02 and when is it required?
The SH02 form is used to notify Companies House of a share subdivision (share split). Companies often file an SH02 after subdividing shares prior to an investment round.
You must file an SH02 whenever shares are subdivided (e.g., 1 share becomes 100)
Most commonly, founders use it when they initially incorporated with a small number of shares (e.g., 1, 100, or 1,000) and need more granularity before fundraising.
How to file an SH02 with Companies House
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Pass an Ordinary Resolution: Shareholders must approve the share split with a standard resolution (signed by at least 50% of shareholders).
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Submit the SH02 Form to Companies House: File the SH02 online to formally record the change.
For more information on this, see our SH02 filing guide.
How to process a share split on FounderCatalyst
1. Go to the Cap Table section
From the left-hand menu, open 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. Enter 1 : 100 for a 1:100 share split.
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
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Optionally export the updated cap table for your records
Important: After splitting shares on FounderCatalyst, double-check the nominal value under General Company Details to ensure it updates correctly.
Nominal value - quick overview
A share’s nominal value is its base value as set by the company - usually something like £1, 10p, 1p or lower.
Following a share split, the nominal value must decrease in the same ratio as the split.
Example: 1 share at £1 split into 10,000 shares → each new share has a nominal value of £0.0001.
This keeps the total nominal capital the same.
Important note: If the nominal value is not correct on the platform, filings and documents may show incorrect share capital figures.
