How to register a UK limited company

How do you set up a limited company in the UK?

Register directly with Companies House or use an agent. For a standard private company limited by shares, the official online service costs £100 and Companies House says applications are usually processed within 24 hours. You may need to verify your identity first and use your Companies House personal code during the application.

The certificate of incorporation confirms that the company legally exists. It gives the company number and incorporation date. It does not remove the need to deal with tax, records and ongoing filings.

In short:

1. Choose a company name and check it is available.
2. Decide your directors, shareholders and registered office address.
3. Verify your identity with Companies House.
4. Register online with Companies House and pay £100.
5. Tell HMRC when the company starts trading and set up your bank account and records.

What do you need before you apply?

Prepare these decisions before you start the official application:

• Company name: must be unique, not too similar to existing companies, and not contain restricted words without authority
• Registered office and email address: the registered office is public. Check the official address rules before using a home address.
• Directors: at least one is required. A director can also be the only shareholder.
• Shareholders: at least one. Often the same person as the director for small companies.
• People with significant control (PSCs): for example, people with more than 25% of shares or voting rights.
• Share capital and governing documents: the memorandum and articles of association, plus the statement of capital for a company limited by shares.
• SIC codes: Standard Industrial Classification codes describing what the company does

Register with Companies House

1. Complete identity verification if Companies House requires it and keep the personal code for each director.
2. Use the official online service for a standard registration, or choose an agent or software route where it suits the company.
3. Pay the £100 online incorporation fee. A postal application costs £124 and takes longer.
4. Keep the certificate of incorporation, company number and Companies House account details securely once the application is accepted.

The official service will usually set up Corporation Tax at the same time unless the company is dormant. It can also include PAYE registration when the company will employ staff.

How much does it cost to set up a limited company?

The Companies House fee is £100 online or £124 by post. That is the only compulsory fee to register. Optional costs can include a registered office or address service, a formation agent package, a business bank account with fees, and an accountant.

How long does it take?

Companies House says online applications are usually processed within 24 hours. Postal applications take 8 to 10 days. Allow time beforehand for identity verification and for choosing a name and address.

Can you set up a limited company yourself?

Yes. Most founders can register directly with Companies House online without an agent. Directors must be at least 16. You do not need to live in the UK to set up a UK company, but the registered office must be in the UK (in the same part of the UK the company is registered in) and every director must verify their identity. An accountant is not required to register, but many founders use one to set up payroll, VAT and bookkeeping correctly from the start.

Should you set up a limited company or stay a sole trader?

A limited company is a separate legal entity with limited liability, pays Corporation Tax on its profits and has more filing duties. A sole trader is simpler to run but is personally liable and pays Income Tax and National Insurance on all profits. The better choice depends on profit level, risk and plans. Read our sole trader vs limited company guide.

What do you do after incorporation?

1. Open a business bank account: separate from personal finances from day one
2. Add Corporation Tax services to the business tax account when the company receives its 10-digit UTR.
3. Tell HMRC when the company becomes active: normally within 3 months of starting its tax accounting period if it is within the charge to Corporation Tax.
4. Register for VAT if you'll exceed £90,000 turnover (or want to register voluntarily)
5. Register for PAYE before the first payday if the company will employ anyone, including a director on salary.
6. Set up bookkeeping software: MTD-compatible from the start saves migration later
7. Keep company and accounting records: including details of shareholders, directors, PSCs and business transactions.

Ongoing obligations from day one

• File annual accounts at Companies House and a Company Tax Return with HMRC by their respective deadlines.
• File a confirmation statement every 12 months and keep Companies House information current.
• Report changes to directors, PSCs, registered office or share structure when required.
• Keep company and accounting records for the required period.

Common first-time mistakes

• Using a home address without checking which company details will be public.
• Starting to trade without telling HMRC when the company becomes active.
• Mixing personal and company money in the early months
• Taking dividends before checking that there are sufficient distributable profits and the paperwork is in place.
• Ignoring identity-verification requirements or losing personal codes.

Official sources and the next business steps

Companies House, not RR Accountants, decides whether an application can be registered. Use the official guidance for registration and identity verification. We can help founders organise bookkeeping, Corporation Tax, VAT and payroll obligations once the business is set up.

• Register a company with Companies House
• Companies House identity verification guidance
• Tell HMRC a company is active for Corporation Tax
• RR company formation and setup support
• Corporation Tax support for limited companies