How to Form a Limited Company in the UK

Forming a limited company is one of those tasks that feels more complicated than it is. The process has been streamlined significantly in recent years. Most straightforward incorporations are completed online in under an hour and approved by Companies House the same working day. The £100 fee covers everything. What takes longer than the registration itself is deciding on the right structure, preparing the information you need, and knowing what to do once the company exists.

What You Need Before You Start

Before you open the Companies House online application, it is worth having a few things decided and ready. Missing information part-way through the application is not the end of the world, but preparing in advance makes the process quicker.

A company name. The name must be unique and cannot be too similar to an existing registered company name. Companies House has a name availability checker on its website. The name also cannot contain certain restricted words (such as "bank" or "royal") without approval. Most names for new businesses are straightforward to clear, but it is worth checking before you get attached to one.

A registered address. Every limited company needs a registered address in the UK. This is a legal address where official correspondence from Companies House and HMRC will be sent. It appears on the public register, which means it is visible to anyone who looks up your company. It does not need to be a physical office or your trading address, but it must be a real address where documents can be received.

At least one director. A limited company must have at least one director. Directors must be at least 16 years old. You will need each director's full name, date of birth, home address, nationality, and occupation. Directors' home addresses are kept on a restricted register and are not publicly visible, though a service address that will be publicly shown is also required.

Shareholder details. The company needs at least one shareholder. In a simple single-founder company, the founder is typically both the director and the only shareholder. You will need to decide how many shares to issue and at what nominal value. A simple structure of 100 shares at £1 each is common for small companies and gives flexibility for dividing equity later if needed.

A Standard Industrial Classification (SIC) code. This is a code that describes what your company does. Companies House provides a full list. You can select up to four SIC codes, though most businesses need only one or two.

How to Incorporate Directly via Companies House

The online incorporation service is at ewf.companieshouse.gov.uk. The process walks you through each required field in sequence. You will need to create an account if you do not already have one.

The application covers the company name, registered address, director details, shareholder structure, and SIC code. You also choose a set of model articles of association (these are the rules governing how the company is run). For most new companies, the standard model articles provided by Companies House are perfectly adequate and do not need customising. Customised articles are only typically needed for companies with more complex governance arrangements, such as multiple shareholders with different classes of shares.

Payment of the £100 fee is made by debit or credit card at the end of the application. Once submitted, Companies House typically processes straightforward applications the same working day. You receive a certificate of incorporation by email, which confirms the company's registration number and the date it was incorporated.

The total process, from starting the application to receiving the certificate, typically takes less than two hours if your information is prepared in advance. There is no requirement to use a solicitor or a formation agent, and the application is not legally complex for a standard private limited company.

When a Formation Service Is Worth Using

Formation agents and company formation services charge a fee to file the application on your behalf, typically anywhere from around £10 to over £100 on top of the Companies House fee, depending on what is included. Some formation services bundle additional products alongside the registration, such as a registered address service, a business bank account referral, or a share certificate.

For a straightforward single-director, single-shareholder company, a formation agent adds minimal value over doing it yourself. The application is not complicated, and the Companies House online service is well designed. The main reason to use one is convenience. Some services offer a slightly faster turnaround by filing through a dedicated agent account, though the difference is marginal for same-day applications.

Where formation agents earn their fee is in more complex structures. These include companies with multiple shareholders and different share classes, companies that need bespoke articles of association, or situations where you want legal or accountancy advice alongside the registration. Some accountants offer company formation as part of their onboarding service for new clients, which can be worth taking if you are setting up an accountancy relationship at the same time.

One thing to watch with formation agents is upselling. A basic registration package is usually all you need. Registered address services, nominee director arrangements, and company secretarial packages are sometimes presented as standard inclusions when they are add-ons you may not need. Read what is actually included in any package before paying.

Choosing a Registered Address

The registered address requirement catches some new business owners off guard, particularly those working from home who are not comfortable having their home address visible on the public register.

A virtual office registered address service allows you to use a professional business address as your company's registered address. Mail addressed to your company is received at the virtual office and forwarded to you, either physically or scanned and emailed. Prices typically run from around £50 to £150 a year for a basic mail forwarding service, with premium addresses in central London or other major cities at the higher end.

Several types of provider offer this service. These include dedicated virtual office companies, accountants who offer it to clients, and formation agents who include it in bundles. The quality of the address matters less than the reliability of the mail forwarding, since the Companies House and HMRC correspondence you receive there can be time-sensitive.

If you have a genuine business address (an office, a studio, or commercial premises), use that. If you use your accountant's address with their permission, that is also a common and entirely legitimate arrangement. The virtual office route is primarily useful for home-based businesses where privacy is a priority.

Your registered address must be in the same country as your company's registration. If you register in England and Wales, the registered address must be in England or Wales. Scotland and Northern Ireland have separate registers.

What to Do After You Incorporate

Incorporation is the start, not the end. Several things need to be sorted in the weeks immediately after the company is registered.

Open a business bank account. A limited company must keep its finances separate from its directors' personal finances. Most digital business banks can open an account in hours once you have your certificate of incorporation and company number. You can compare business bank accounts on HowMuch to find an account that fits how you will use it.

Register for corporation tax. HMRC will send a letter to your registered address with your Unique Taxpayer Reference once they are notified of your incorporation. You then need to register the company for corporation tax online within three months of starting to trade.

Set up your accounting software. Connecting your business bank account to Xero, QuickBooks, or FreeAgent from the start makes the annual accounts and corporation tax return considerably less painful. Most digital business banks integrate directly with all three.

Consider appointing an accountant. Limited companies have more complex compliance obligations than sole traders. These include annual accounts in a specific format, a corporation tax return, and a confirmation statement filed at Companies House each year. Many directors handle their own bookkeeping but engage an accountant for the annual accounts and tax return. Bringing an accountant on board early means they understand the business from the start.