Registering a limited company in the UK: what to expect
Incorporating a private limited company in the UK is faster and cheaper than most people expect. Most online applications through Companies House are approved within 24 hours, and the standard fee is modest. The real work is in the preparation: choosing a sound name, deciding who does what, and understanding the duties that follow. This step by step guide walks you through the whole process so nothing catches you out.
Before you start: what you will need
- A unique company name that is not already registered or too similar to an existing one.
- A registered office address in the UK, which will appear on the public register.
- At least one director who is at least 16 years old.
- At least one shareholder and the number of shares they will hold.
- A SIC code describing what the company does.
- Details of people with significant control (PSCs).
Step 1: choose and check your company name
Your name cannot be the same as an existing company and cannot be offensive or misleading. It also cannot imply a connection with government or a professional body unless you are entitled to it. Check availability on the Companies House name search and, if you plan to build a brand, check the trade mark register and a matching domain name too.
Step 2: confirm the company type
Most new businesses register as a private company limited by shares. This means the company is owned by shareholders, and liability is limited to the amount unpaid on their shares. Other options include a company limited by guarantee, often used by clubs and charities, and a public limited company for larger ventures. For most start-ups, limited by shares is the right choice.
Step 3: appoint directors and shareholders
Directors run the company and have legal duties, including keeping proper records and filing accounts on time. A director can also be a shareholder. Shareholders own the company and usually hold one or more ordinary shares. Decide early how shares are split, because changing ownership later can have tax consequences.
Step 4: choose a SIC code
A SIC code is a standard classification that describes your business activity. You must select at least one when you incorporate. Pick the code that best matches your main trading activity, and add others if you have several income streams. Choosing accurate codes helps banks, insurers and lenders understand your business.
Step 5: prepare your registered office and addresses
Every company needs a registered office address, which receives official mail and appears publicly. You also need a service address for each director, which can be the same as the registered office. Many founders use an accountant or a virtual office to keep their home address private.
Step 6: create the memorandum and articles of association
The memorandum is a short statement that the subscribers wish to form the company and agree to take shares. The articles of association are the rules that govern how the company is run. Most new companies use the model articles, which cover the essentials without extra cost. If you need custom rules, a solicitor can draft bespoke articles.
Step 7: register online with Companies House
Register through the Companies House online service, or use the Joint Online Registration service if you want to register for Corporation Tax at the same time. You will provide your company name, address, SIC code, directors, shareholders and PSC details. Once approved, you receive a certificate of incorporation and a company number, and the company legally exists.
Step 8: register for tax and set up records
Companies must register for Corporation Tax within three months of starting to trade. If you will pay salaries, register as an employer for PAYE. You should also register for VAT if turnover is expected to pass the threshold, and set up a business bank account in the company name so that company and personal money never mix.
Costs and ongoing duties
Online incorporation costs around 50 pounds, with same day services available at a higher fee. After incorporation, you must file annual accounts and a confirmation statement, and keep accounting records. Deadlines are strict and late filing penalties grow quickly, so diarise them or appoint an accountant.
Making your new company visible
Registration is only the start. Customers, suppliers and partners need to find you. Listing your company in a trusted business directory gives you a professional profile and an easy route for enquiries, so add your business to the directory once your details are confirmed.
After you incorporate
With your company number in hand, open a bank account, set up accounting software, and start building a public profile. Keep your Companies House details up to date, pay your Corporation Tax on time, and you will stay compliant as you grow. If you want customers to discover the new company quickly, add your business to the directory and keep the profile current.