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Types of shares


When forming a company, it is important to give a good thought about the types of shares your company is going to create and issue. Your company may have as many different types of shares as it wishes, all with different legal right and conditions attached to them.

Typically shares types fall into the following categories:

Ordinary share

This type of share has no special rights or restrictions. Your company may divide the ordinary shares into classes of different values.

Preference share

This type of share carries a right that gives priority when come to annual dividends distribution before other classes of shares.

Cumulative preference

This type of share carries a right that if the company cannot pay the dividend in one year, it will carry it forward to successive years.

Redeemable share

This type of share is issued with agreement that it will buy them back at the option of either the company or the shareholder after a certain period or on a fixed date. However, your company cannot only have redeemable shares.

Once you decided the types of shares your company is going to issue, you are required to complete the statement of capital giving details of your shares types.

At every anniversary of your company incorporation, you are require to update your statement of share capital if there is any changes as part of the Confirmation statement filing requirement.

If you require help in registering your company, our accountants at Concise Accountancy will be more than happy to assist you. Feel free to contact us or email us at Our London Accountants will response to you within 24 hours.

Concise Accountancy – Making setting up a new company simple for businesses
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