Company formation in the UK, explained in one page.

What company formation actually means

Company formation, also called incorporation, is the legal act of creating a new company on the register kept by Companies House. Once the registrar accepts the application, the company exists as a separate legal person: it can own assets, sign contracts, employ people, sue and be sued in its own name. Its debts are its own, which is why shareholders in a company limited by shares normally risk only the amount unpaid on their shares.

Most small businesses form a private company limited by shares ("Ltd"). Other structures exist — companies limited by guarantee, community interest companies, LLPs and public limited companies — but each has different rules and is not simply another label for the same application.

Whoever submits the application, the result is identical: the same certificate of incorporation, the same company number and the same public record. Agents do not create a "better" company; they change the experience, the extras and the price.

What you need before you apply

Gather these details first. Missing or inconsistent information is the most common cause of a rejected or delayed application.

• A company name that is not the same as, or too like, an existing name and that avoids sensitive words unless you have permission
• A registered office address in the same UK jurisdiction as the company (England and Wales, Scotland, or Northern Ireland) where post can be received and which is an appropriate address
• At least one director aged 16 or over, with a service address that may be different from their home address
• At least one shareholder (who can be the same person as the director) and a statement of capital showing shares and their value
• Details of every person with significant control (PSC) — usually anyone with more than 25% of shares or votes
• At least one SIC code describing what the company will do
• Articles of association — most small companies adopt the model articles
• Identity verification for directors and PSCs, with their personal codes where required
• A lawful-purpose statement and a registered email address

How the process works, start to finish

The core sequence is the same through Companies House or an agent:

1. 1

   Check the name on the Companies House register and against trade marks

2. 2

   Decide the people: directors, shareholders and PSCs

3. 3

   Choose the registered office and service addresses — your own or a provider's

4. 4

   Set the share structure: number of shares, nominal value and who holds them

5. 5

   Complete identity verification for each director and PSC

6. 6

   Submit the application and pay the fee

7. 7

   Receive the certificate of incorporation and company documents, usually by email

8. 8

   Register for Corporation Tax, open a business account and diarise filing deadlines

Worth knowing: Our interactive formation checklist walks through each of these stages and keeps your progress in your browser only.

Direct with Companies House or through an agent?

Applying directly costs the official £100 online fee and nothing else. You complete the forms yourself, there is no pre-submission check, and any address you use as a director's correspondence or registered office will be public.

A formation agent submits the same application through Companies House software. What you pay for is the wrapper: a guided form, address services that keep your home address off the register, identity verification as an authorised corporate service provider, printed or digital documents, a bank account and support afterwards. Some agents subsidise the £100 fee because they earn from a bank account or subscription.

How our selected offers compare

Headline prices are not like for like. Some include the Companies House fee; others add it at checkout. These are entry packages, checked on 14 October 2026.

Worth knowing: Tide is our featured, commission-paying partner. It is also the lowest all-in formation total in our selection, but check the account suits your business before applying.

How long it takes

Straightforward online applications are often processed within 24 hours on working days. Identity checks, name objections, weekends, bank holidays and busy periods can add time. Some agents sell a same-day service for applications submitted before midday — Mint Formations charges £79 + VAT and Rapid Formations £79.99 — but approval still rests with Companies House.

What happens after incorporation

Incorporation starts the compliance clock. Within the first weeks you should register for Corporation Tax, set up bookkeeping and keep company money separate from personal money.

• Register for Corporation Tax within 3 months of starting to trade
• Register for PAYE before the first payday if the company will pay anyone, including directors
• Consider VAT registration if taxable turnover will exceed the threshold, or voluntarily
• File a confirmation statement at least once every 12 months (Companies House fee £50)
• File first accounts, usually within 21 months of incorporation
• Keep statutory registers and update Companies House when officers, addresses or shareholdings change