Split shares between co-founders
Starting a limited company together? Answer nine questions about what each person will contribute. Get a suggested ownership split and share numbers, then work through the conversations to have before you agree.
Your share split is how ownership of the company is divided between the people who hold its shares. For how share structures work, see FOUNDRS Learn.
Who's starting the business?
Add between two and four people. Names are only used as labels on this page.
What each person brings
Think about the work each person is doing now and has agreed to take on over the next 12 months. Answer together where possible.
Select everyone for an equal contribution, or choose individual names where the contribution is mainly theirs.
Who will take responsibility for running the business day to day?
Think about coordinating the work, setting priorities and keeping the business moving.
Who will create the product or deliver the service customers pay for?
This could mean providing advice, carrying out a trade, making products, developing software or delivering client work.
Who plans to contribute part-time while other founders work full-time?
Select people whose planned time commitment will be lower than the others’. If everyone expects to contribute similar hours, choose ‘Similar time commitment’.
Discuss actual hours and start dates together. The suggested split uses a simple adjustment rather than valuing every hour.
Whose relevant experience or reputation will help customers trust the business?
For example, specialist expertise, qualifications or an established reputation. Consider credibility here; customer introductions are covered separately.
Who will take responsibility for winning customers and bringing in sales?
Include finding opportunities, following up enquiries and turning interest into paying customers.
Who will take responsibility for marketing the business?
Think about helping people discover the business and understand why they should choose it.
Who will shape what you sell and how it should improve?
Think about defining the offer, understanding customer needs and deciding what to develop or change.
Who will take responsibility for pricing, costs and cash-flow planning?
Think about making the numbers work and understanding what the business needs to earn and spend.
Who brings existing relationships that could introduce customers or useful business contacts?
Consider relevant, usable relationships rather than the size of someone’s general network.
Before you agree
A percentage is only part of the agreement. Discuss these points together before settling on your ownership split.
- How many hours will each person contribute, and when will they start?
- Does anyone need an income immediately, while others can work unpaid?
- Are you aiming for a side business, a full-time income or a business you hope to sell?
- What will you do if those expectations change?
- Is anyone contributing cash, equipment, intellectual property or an existing customer base?
- What do they expect in return: repayment, shares or another arrangement?
- Are there existing commitments, costs or ownership arrangements to account for?
Discuss these separately from day-to-day work. The suggested split does not automatically convert money or assets into ownership.
- Which decisions can each person make independently, and which need agreement?
- How will you resolve a disagreement, especially with equal ownership?
- What happens if someone reduces their involvement, does not deliver what was agreed or wants to leave?
- When will you review your responsibilities and commitments?
Document what you agree and get appropriate advice before implementing share arrangements. This tool does not issue, transfer or automatically adjust shares.
Does this split still feel right after discussing these points?
You can use the suggestion, agree a different split or revisit your answers. The aim is an arrangement everyone understands and can commit to.
How this is calculated
The suggested split gives points across eight areas of contribution, with more weight given to delivery, winning customers and running the business. Shared contributions divide those points equally. A simple adjustment applies where someone plans to contribute less time.
Each contribution question has a fixed number of points. When more than one person is selected, the points are divided equally between them. Unanswered questions, and questions marked Doesn’t apply or Not agreed yet, allocate no points.
This simple time adjustment reduces the selected person’s contribution score by approximately 23% before percentages are calculated. It does not subtract 23 percentage points from ownership. Their points are divided by 1.3. Choosing Similar time commitment, Not agreed yet or leaving the question blank applies no adjustment.
Each person’s percentage is their adjusted score divided by everyone’s adjusted scores combined. Percentages are shown to one decimal place and rounded so they add up to 100.0% where possible. Founders with equal scores always get the same figure, so an equal three-way split shows 33.3% each. Share numbers use the lowest total, from 100 up, that divides the split into whole shares, keeps equal founders equal and keeps everyone within half a percentage point of their suggested share.
These weights are illustrative. The result does not separately value cash, assets, unpaid work or existing ownership.
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Explore FOUNDRS →Frequently asked questions
It is a suggested division of ownership between the founders included in this calculation. Your company's actual rights depend on its shares, articles and any relevant agreements. The result does not create or transfer shares.
No. Equal ownership can make sense when your contributions and commitments are similar, or when you agree that it is the right basis for working together. Use the questions to have the discussion, rather than letting the suggested split decide for you.
There is no required number; a company needs at least one share. Many founders issue 100 ordinary shares so each share is 1%. Shares can't be split into fractions, so pick a number that divides the way you've agreed: an equal three-way split works with 102 or 300 shares, but not 100.
Nominal value is the minimum amount each share must be paid for, and a shareholder can be asked to pay any unpaid part. Common choices are £1 or 1p per share. A low nominal value keeps the amount founders must pay small.
With one class of ordinary shares, dividends are paid in proportion to the shares each person holds. Different arrangements need different share classes or rights set out in your articles, which you should get advice on.
Anyone who holds more than 25% of a company's shares or voting rights is a person with significant control (PSC). They must be recorded on the company's PSC register and reported to Companies House.
Yes, by issuing new shares or transferring existing ones between shareholders. Changes need the right approvals and filings and can have tax consequences, so agree the split carefully at the start and take advice before changing it.
It is not a legal requirement, but it is strongly recommended when more than one person owns the company. It can cover decision-making, what happens if someone leaves and how shares can be sold or transferred.
Not necessarily. The model gives weight to leadership, but a job title does not decide ownership. Running the company and owning it are distinct roles.
Consider that separately from their day-to-day contribution. Agree whether the money is a loan, payment for shares or another arrangement, and get advice on recording it. The suggested split does not automatically convert money into ownership.
The suggested split includes a simple adjustment for a lower planned time commitment. It does not compare salaries, unpaid time or personal financial circumstances. If those differences are important, discuss them alongside the result.
Agree this before you issue shares. Document how departures and any share transfers will be handled. Shares do not automatically disappear when a founder stops working in the business; any vesting or leaver arrangement needs appropriate legal documentation.
You can use it to explore a discussion, but it does not change your current shareholdings. Existing shares, rights, agreements and any tax consequences need separate consideration before making changes.
You do not need to split ownership between founders. If you are the only shareholder, you own 100% of the company. You can still plan separately for future business partners or investors.
It is designed for an early discussion between people starting a UK private company limited by shares. It does not calculate an appropriate structure for partnerships, LLPs, companies limited by guarantee, passive investors or complex existing ownership arrangements.
This tool is for an early discussion between people starting a UK private company limited by shares. It is general information, not legal, tax or financial advice.