How to form a UK limited company

Before you incorporate

Decide on these before applying:

• Company name — must be unique, not too similar to existing companies, and not contain restricted words without authority
• Registered office address — public on Companies House. Use a virtual office service if you don't want your home address public
• Directors — at least one. Can be the only owner.
• Shareholders — at least one. Often the same person as the director for small companies.
• Share capital — most start with one £1 ordinary share to keep things simple
• SIC codes — Standard Industrial Classification codes describing what the company does

The application

1. Apply via Companies House online (£12, typically same-day)
2. Or use a formation agent (often £20-£100, sometimes including extras like registered office)
3. You'll receive a Certificate of Incorporation, your company number, and access to your Companies House account

First 30 days after incorporation

1. Open a business bank account — separate from personal finances from day one
2. Register for Corporation Tax with HMRC within 3 months of starting to trade
3. Register for VAT if you'll exceed £90,000 turnover (or want to register voluntarily)
4. Register for PAYE if you'll employ anyone, including yourself as a director on salary
5. Set up bookkeeping software — MTD-compatible from the start saves migration later
6. Get appropriate insurance — professional indemnity, public liability, employer's liability if you employ
7. Set up share issue — record the issue of initial shares and update PSC register

Ongoing obligations from day one

• Annual accounts at Companies House (first set: 21 months from incorporation)
• CT600 with HMRC each year
• Confirmation statement annually
• Notify Companies House of any director, shareholder, address, or share changes
• Maintain statutory registers (members, PSC, directors)

Common first-time mistakes

• Using your home address as the registered office without realising it'll be public forever
• Forgetting to register for Corporation Tax within 3 months of trading
• Mixing personal and company money in the early months
• Not issuing dividend vouchers properly the first time you take dividends
• Choosing wrong SIC code(s)