Knowledge Base: Share splits & SH02 filings

This guide explains:

• What is a share split?

• Why carry out a share split?

• What is an SH02 and when is it required?

• How to file an SH02 with Companies House

• How to process a share split on FounderCatalyst

• Nominal value - quick overview

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:

• A 1:10 share split turns every 1 share into 10.

• A shareholder holding 100 shares would then hold 1,000 shares.

• The value of their holding remains unchanged.

Why Carry Out a Share Split?

Companies typically carry out a share split to:

• Reduce the nominal value per share

• Increase the number of shares available (useful before fundraising)

• Allow more granular investment amounts

• Improve the clarity and investor-friendliness of the cap table

• 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

1. Pass an Ordinary Resolution: Shareholders must approve the share split with a standard resolution (signed by at least 50% of shareholders).

2. 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.

• Review all shareholder holdings

• Confirm the split looks correct

• 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.