Paid, unpaid and share premium explained

Every share has a nominal value (its fixed face value, often £1 or £0.01). That is not what the share is worth — it is simply the amount fixed in the company’s constitution.

Issue price and share premium

The issue price is what the shares were actually issued for. Often that is the same as the nominal value. If shares are issued for more than their nominal value — common in an investment round — the extra is share premium. For example, a £1 share issued for £2 carries £1 of premium.

Paid and unpaid

Shares need not be paid for straight away. The amount paid is what the shareholder has actually handed over; anything still owed is unpaid. Both figures include any premium. So a £1 share issued for £2 with 50p paid is 50p paid and £1.50 unpaid.

Why it matters

Companies House asks for the amount paid and unpaid on every allotment (form SH01) and on the statement of capital, and the aggregate amount unpaid appears on the public register. Unpaid shares are a genuine debt the shareholder owes the company. Compaxit records the issue price and paid amount for each holding and works out the unpaid figure and any premium for you.