We make it easy to process the buying back of shares for your company by handling the process from start to finish. Our service ensures that the task is taken care of quickly and efficiently. All the required company statutory paperwork is completed and all forms are delivered complete, with only signatures required.
There are a number of reasons why a company may want to buy back its own shares. Perhaps the most common example is to buy out shareholders that no longer want to be involved with the company, for example on retirement. It may be preferable for the company to buy back the shares rather than for the holder to transfer the shares to someone else. This may apply if the remaining shareholders are unable to buy the shares (or do not want to), a third party purchaser cannot be found or the existing shareholders do not want any other parties to own the shares.
When the company is using distributable profits to finance the buy back, the shareholders will need to approve this by passing an ordinary resolution, which we will complete and provide along with accompanying minutes and notices as required.
In most cases, the shares bought by the company will normally be immediately cancelled but where the purchase has been fully financed out of distributable profits, they can held by the company as treasury shares. These shares can then be issued or cancelled at a later date.
Details of the transaction must be filed with Companies House in hard copy, which we will arrange. (share buyback details cannot be lodged electronically).
For purchases where the amount being paid is over £1000, stamp duty (at a rate of at 0.5%, rounded up to the nearest £5) is payable by the company and the form must first be sent to HMRC for stamping before being lodged with Companies House, which we will arrange.
In addition, if the shares are being immediately cancelled, then we will register details of the cancellation at Companies House within the required 28 days.
For the correct completion of the company statutory books we will also complete and provide fully updated company registers including updated register of members. We will cancel the existing share certificates for the shares bought back and issue new share certificates as appropriate for any shareholders still holding shares after the buyback.
It is also important that PSC (Person of Significant Control) details are kept up to date on the company registers and with Companies House. We will make sure that all required PSC updates are completed and filed as part of our service.
This service can be combined with any other company secretarial jobs required. Please click below to purchase this service or to purchase this service with any other secretarial service.
Our normal charge for arranging a buyback of shares is £185. All companies are different, so we will need to look at the complexity and history of the company and consider whether stamp duty is payable on the transaction to make sure that the service can be completed without problems. Please click on our quick quote below and we will be in touch as soon as possible with a no-obligation quote.
|Buyback of shares||From Only £185.00 + VAT||Get a quote|