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SH50 Trading Certificate UK: Apply to Trade (2026)

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Part ofCompanies House Forms UK

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
If you have just incorporated a public limited company in the UK, there is one more hurdle before you can legally trade or borrow money: securing a trading certificate from Companies House. This is done by filing form SH50, and it is a requirement set out in section 761 of the Companies Act 2006. The certificate confirms that your PLC meets the authorised minimum share capital threshold and is cleared to operate. Without it, your company exists on the register but is not permitted to begin business. This page walks through what the certificate is for, who needs to apply, what the SH50 form asks of you, and the practical points that trip people up. It is written for founders, finance directors, and company secretaries who want a clear view of the process before they start filling in paperwork.

What this document is

A trading certificate is the formal permission that allows a newly incorporated PLC to start doing business and exercise borrowing powers. It only applies to public limited companies. Private limited companies (Ltd) can trade from the moment they are incorporated and do not need one.

The rules sit in section 761 of the Companies Act 2006, with the share capital threshold found in section 763. The central requirement is that the company's allotted share capital must meet what the Act calls the 'authorised minimum'. That figure is set in sterling, with an equivalent in euros, and the capital must be denominated entirely in one currency or the other, not a mix of both.

A set proportion of the nominal value of each allotted share must be paid up, along with the whole of any premium. Once Companies House is satisfied that the threshold is met and the statement of compliance has been provided, the registrar issues the certificate.

From that point the PLC can begin trading. Acting without one carries real consequences for directors, so this step is not one to delay or overlook.

How to use this document

  1. Confirm the authorised minimum share capital is met. Your PLC must have allotted shares with a nominal value that reaches the statutory authorised minimum, denominated either wholly in sterling or wholly in euros. Check the current threshold on gov.uk before you allot, because mixing currencies or falling short will mean the registrar refuses to issue the certificate.
  2. Ensure shares are properly paid up. Each allotted share counted towards the authorised minimum must be paid up to the required proportion of its nominal value, with the whole of any premium paid in full. Keep clear records of payments received from subscribers, because you will need to state the aggregate amount paid up when you complete the SH50.
  3. Gather the financial information the form asks for. Before starting the form, pull together an estimate of your company's preliminary expenses and details of any payment, benefit, or consideration given or promised to a promoter. These figures need to be declared on the SH50 and the registrar will not accept vague or missing entries.
  4. Complete form SH50 and the statement of compliance. Fill in the form with your company details, the currency chosen for the authorised minimum, the paid up aggregate, preliminary expenses, and promoter payments. The statement of compliance confirms the company meets the section 761 conditions, and the registrar is entitled to treat this statement as sufficient evidence.
  5. Submit to Companies House with the filing fee. Send the completed SH50 to Companies House along with the applicable fee. Check gov.uk for the current amount, because fees change periodically. Once the registrar is satisfied, the trading certificate will be issued, and at that point your PLC can begin business and exercise borrowing powers.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q Does a private limited company need a trading certificate?
No. The trading certificate requirement in section 761 of the Companies Act 2006 applies only to public limited companies. A private limited company (Ltd) can start trading as soon as it is incorporated and issued with its certificate of incorporation. If a private company later re-registers as a PLC, different rules apply, and an SH50 is not needed in that situation.
Q What happens if a PLC trades without a certificate?
Trading before the certificate is issued is a criminal offence under section 767 of the Companies Act 2006. The company and any officer in default can be fined. If the company fails to comply with an obligation arising from a transaction entered into before the certificate was issued, directors can become personally liable to the other party for any loss suffered. It is a risk not worth taking.
Q What is the authorised minimum share capital?
It is the statutory minimum nominal value of allotted shares a PLC must have before it can be issued a trading certificate. The figure is set in sterling with a separate figure in euros, and the PLC must choose one currency for the whole of the authorised minimum. Check gov.uk for the current thresholds, as these are set by regulation and can be updated.
Q How long does it take to receive a trading certificate?
Timing depends on how Companies House is processing filings at the time and whether the form has been completed correctly. Paper submissions tend to take longer than electronic filings. If the registrar has questions about the paid up amount, promoter payments, or the statement of compliance, the process will slow down. Getting the detail right first time is the fastest route.
Q Do I need to send evidence with the SH50?
The registrar is entitled to accept the statement of compliance in the form as sufficient evidence that the section 761 requirements are met. You do not normally need to file supporting documents, but the directors signing the statement should be confident the company genuinely meets the conditions, because making a false statement carries serious consequences.
Q What counts as preliminary expenses on the form?
Preliminary expenses are the costs of setting the company up, such as incorporation fees, professional fees, and other formation costs incurred before trading begins. The form asks for the amount or an estimate, so a reasonable figure based on the invoices and engagements known at the point of filing is usually acceptable.
Q Is an SH50 needed when re-registering from Ltd to PLC?
No. When a private company re-registers as a public company, the authorised minimum share capital must be met as part of that process, but a separate trading certificate is not required. The re-registration itself authorises the new PLC to trade. A statement of compliance is still part of the re-registration paperwork to confirm the conditions are satisfied.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.