How to form a limited company in the UK.

1. Decide whether a limited company fits

A sole trader runs a business personally, while a company owns its money and assets separately from its shareholders. Incorporation can limit shareholders’ exposure, but personal guarantees, director duties and insolvency-related risks still matter. It is not a replacement for insurance or careful contracts.

Compare administration, anticipated profits, customers, risk and future ownership before deciding. A low formation fee should not decide your business structure. Ask an accountant to compare the full tax and cost picture using your circumstances.

2. Choose and check your company name

Search the Companies House register and naming rules. Names cannot be the same as existing registered names under the legal rules, and “too like” names can be challenged. Sensitive words or wording suggesting government connections can require permission.

Check trade marks separately. Registering a company does not automatically give you brand rights, and domain availability does not establish legal clearance. Decide whether you will use the registered name or a different trading brand, then plan the necessary legal disclosures.

3. Plan your registered office and public addresses

The registered office must be an appropriate physical address in the registration jurisdiction. It must reliably bring official documents to someone acting for the company and permit acknowledgement of delivery. A standalone PO Box is not acceptable.

Your registered office and directors’ service addresses are public. Home addresses supplied in the designated residential field are normally protected, but using your home in a public field makes it visible. A later address update does not automatically remove historical information. You also need an appropriate registered email address, which is not made public.

If buying an address service, check jurisdiction, mail handling, director-address scope, renewal fees and what happens when you cancel. An address is useful only if official correspondence reaches you promptly.

4. Agree directors, ownership, shares and control

A private company needs at least one director who is a natural person and at least one shareholder. The same individual can hold both roles. Directors must be eligible and at least 16. A private company does not generally need a company secretary.

Decide the share structure, nominal value, ownership proportions and rights. Share capital is not the company’s market valuation. Identify people with significant control: more than 25% of shares or votes is a common test, but appointment rights and other control tests also matter.

For co-founders, discuss departures, voting, investment and deadlock before accepting standard documents. Tailored articles and a shareholders’ agreement may be appropriate. Use legal and tax advice for complex ownership rather than forcing it into an entry-level package.

5. Complete identity checks and role requirements

Mandatory Companies House identity verification began on 18 November 2025 for new directors and PSCs. Existing roles have a transition timetable. Verify through the official process or a legitimate Authorised Corporate Service Provider and keep each individual’s personal code secure.

Verification and linking the verified identity to a company role are separate steps. A director who is also a PSC must check both requirements. Multi-director applications need the required details for each person. The personal code is different from the company authentication code used for filings.

6. Select business activity codes and documents

Choose one or more relevant SIC codes from the Companies House condensed list; up to four are permitted. Describe what the company will actually do. A classification is not a licence for regulated activity and does not itself determine tax treatment.

Your memorandum records the subscribers’ intention to form the company, and the articles provide its internal rules. Model articles can suit a straightforward company, but read them before assuming they cover every future decision. Keep the capital information consistent with the agreed ownership.

Understand your formation documents

7. Compare the full registration and ongoing cost

Direct online incorporation currently costs £100. Providers may subsidise it through an account bundle, or charge more for additional services. Compare our selected packages, then check each provider’s checkout and eligibility terms.

Separate formation spend from banking charges, address renewals, accounting, payroll and confirmation statement fees. The current digital confirmation statement fee is £50 for the first statement in a 12-month payment period. A provider’s included filing service may not include that government fee.

A conditional reward should be a possible extra, not guaranteed startup funding. Check spending or deposit requirements and whether the account is suitable before applying. Tide is our featured paid partner and commission influences its prominence; it will not suit every business.

Your online application: the choices that matter

Company type and jurisdiction, public and private addresses, directors, ownership, share number and rights, PSCs, articles and SIC codes are legal decisions—not just boxes to fill. Banking, printed documents and secretarial subscriptions are separate commercial options, and private companies do not generally have to appoint a secretary.

Formation agent or direct Companies House registration?

Both routes create a company on the same register. An agent may add guided administration, authorised verification, address privacy, documents and ongoing filing assistance. Direct registration can suit a straightforward company when you have decided the structure and prefer to choose banking independently. Compare scope, VAT, subsidy conditions and renewals; neither route removes director responsibility.

8. Submit the application and check the result

Apply directly with Companies House or through your chosen provider. Supply accurate details, complete the required statements and verification steps, and review the final package total. Straightforward online applications are often processed within a working day, but verification, checks and holidays can add time.

The certificate of incorporation confirms that the company exists and gives its number and date. Save the documents and check the public record. Bank-account approval remains separate, even where registration and account opening are advertised together.

9. Set up records, banking, tax and a filing calendar

Keep company finances separate from your own and record money introduced by founders correctly. Start bookkeeping immediately, retain evidence of costs and update the legal details on your business documents and website.

Corporation Tax registration is generally required within three months of starting business activity, which can begin before your first sale. Check VAT and payroll requirements as relevant. Your Companies House number is not your HMRC UTR.

Typical first accounts are due within 21 months of incorporation; later private-company accounts within nine months of the year end. Confirmation statements, tax payments and tax returns have separate timetables. Confirm the actual dates and first-period details with your accountant.

Follow the first 30 days after incorporation checklist

Official sources

• GOV.UK: Set up a limited company
• GOV.UK: Register your company
• GOV.UK: Current Companies House fees
• GOV.UK: Running a limited company

General information only, not personalised legal, tax or financial advice. Check official guidance and take professional advice for your circumstances.