How to Set Up a Limited Company in the UK

Decide these things before you apply

Most failed or messy incorporations come from rushing the inputs. Spend an hour thinking through:

• Company name. Must be unique on the Companies House register, not too similar to existing names, and not contain restricted words without permission. Check the register and the trademark database before you commit. Our name checklist covers this.
• Registered office address. This is a public address that receives statutory mail. Your home address works, but it will appear on the Companies House register. Many use an accountant or registered office service for privacy.
• Directors. You need at least one, aged 16 or over. Director home addresses can be kept off the public register using a service address, but Companies House still holds them.
• Shareholders and share structure. Usually a single founder takes 100 of one share class at £0.01 or £1 each. Multiple founders typically split shares in agreed percentages; this is hard to change later, so think about future investors and co-founders now.
• People with Significant Control (PSCs). Anyone who owns more than 25% of shares or voting rights, or who otherwise controls the company, must be declared.
• SIC code. A standard industry code that describes what your business does. Pick the one that fits closest — you can change it later.

How to incorporate, step by step

1. Choose your route. Direct via GOV.UK is £50 and basic. Formation agents (1st Formations, Companies Made Simple, Rapid Formations) offer packages from £15–£100 that bundle a registered office, model articles, share certificates and sometimes a free bank account introduction. Accountants will do it for you, often for free if you're signing up for their bookkeeping service.
2. Complete the IN01 details online. Company name, address, directors, shareholders, PSCs, SIC code, share structure.
3. Use the model articles of association unless you have a specific reason not to. Custom articles can be added later if needed.
4. Pay £50 by card.
5. Wait for approval. Usually within 24 hours; sometimes the same day. You receive a Certificate of Incorporation by email.

What you'll be asked at the form

In the first week after incorporation

The Companies House approval is just the start. Within seven days, sort:

• Statutory registers. A register of members, directors and PSCs. Most accountants and formation services provide templates.
• Share certificates for each shareholder.
• Business bank account. See our opening a business account guide.
• Bookkeeping software. FreeAgent, Xero or QuickBooks — pick one and use it from day one.
• Insurance. Professional indemnity, public liability and (once you employ anyone) employers' liability.

Tax registrations you'll need

• Corporation Tax. HMRC is automatically notified when you incorporate, and will write to you with your Corporation Tax UTR within a few weeks. Register for online filing once it arrives.
• PAYE. Required if you'll pay yourself or anyone else a salary. Register on GOV.UK before the first payday.
• VAT. Mandatory once taxable turnover exceeds the threshold (currently £90,000 in any rolling 12 months). Voluntary registration may suit earlier — particularly if your customers are VAT-registered businesses.
• CIS (Construction Industry Scheme) if you'll engage subcontractors in construction.

Your ongoing duties as a director

Once incorporated, you have legal duties to keep up. The main ones:

• Annual accounts filed at Companies House within 9 months of your year-end.
• Corporation Tax return filed within 12 months of year-end (tax due within 9 months and a day).
• Confirmation statement filed once a year at Companies House (£34 online).
• Personal Self Assessment for any income above the basic personal allowance, including dividends.
• Keep statutory registers current — directors, PSCs, members — and file changes within statutory windows.

Use the new limited company finance checklist and first 30 days plan to sequence everything in order.