How to Set Up a Limited Company

A complete step-by-step guide to registering a UK limited company in 2026, from choosing a name to post-registration essentials.

Quick Answer: You can set up a UK limited company yourself via gov.uk for £12 (online registration). The process takes around 24 hours. You need a unique company name, registered office address, at least one director, and a share structure (typically 100 shares at £1 each). After registration, you must register for Corporation Tax, open a business bank account, and set up accounting systems.

Last reviewed: 12 June 2026 | Reading time: 8 minutes | Verified against 9 sources

Step 1: Choose a Company Name

Your company name must be unique on the Companies House register and follow specific rules:

Name Rules

Check name availability using the Companies House search tool. If someone else has "ABC Services Ltd", you cannot register "ABC Service Ltd" (too similar).1

Trading Name vs Company Name

You can trade under a different name from your registered company name. For example, "Smith Consulting Ltd" (registered name) could trade as "Future Focus" (trading name). You must still display your registered company name on official documents.3

Step 2: Choose a Registered Office Address

Every UK limited company needs a registered office address. This is where official correspondence and legal documents are sent.

Address requirements
Must be a physical address in the UK (England/Wales, Scotland, or Northern Ireland)4
Can I use my home address?
Yes, but it becomes public on Companies House records
Alternatives
Use accountant's address, registered office service (£50-200/year), or coworking space
Changing later
You can change your registered office address at any time via Companies House

Step 3: Appoint Directors

A limited company must have at least one director. You can be the sole director and shareholder.

Director Requirements

Directors' personal details (name, date of birth, nationality, occupation) are recorded on the public register. You can use a service address (like the company address) instead of your home address for privacy.5

Learn more about director responsibilities in our guide: What does a company director do?

Step 4: Decide on Share Structure

Shares represent ownership of the company. You must decide:

Common Share Structures

Single founder: 100 shares at £1 = you own 100% for £100 investment

Two equal co-founders: 100 shares at £1 = 50 shares each, £50 investment per person

Investor involved: Could issue more shares (e.g., 1,000 at £1) to allow granular ownership splits

You can change share structure later by issuing more shares or transferring existing shares, but getting it right initially avoids complications.6

Related: What is a shareholder?

Step 5: Choose an SIC Code

Standard Industrial Classification (SIC) codes describe your company's business activity. You can select up to four codes.

Examples:

Search SIC codes at gov.uk. Choose the code that best describes your main activity.7

Step 6: Register with Companies House

You can register online or by post:

Method Cost Processing Time
Online via gov.uk £12 Usually within 24 hours8
By post (form IN01) £40 8-10 days
Same-day service £100 Same working day if submitted before 3pm

Most people register online via the official gov.uk service. The process takes around 20 minutes.8

What You'll Need to Complete Online Registration

  1. Company name (checked and approved)
  2. Registered office address
  3. Director details (name, date of birth, nationality, service address)
  4. Shareholder details and share allocation
  5. SIC code(s)
  6. Memorandum and Articles of Association (standard template provided, or you can upload custom versions)
  7. Payment method (debit/credit card for £12 fee)

Once submitted, Companies House reviews your application. If approved, you receive a Certificate of Incorporation via email (PDF). This confirms your company legally exists and includes your company registration number.8

Step 7: Register for Corporation Tax

After incorporation, you must register for Corporation Tax within 3 months of starting to trade.

HMRC automatically sends a letter to your registered office address with:

This usually arrives within 2-3 weeks of incorporation. You use the UTR to file Corporation Tax returns and pay tax.9

If you incorporate but don't start trading immediately, you can delay Corporation Tax registration using form CT41G (tells HMRC when you'll actually begin trading).

Learn more: What is Corporation Tax?

Step 8: Open a Business Bank Account

You must keep company money separate from personal finances. Open a business bank account as soon as possible after incorporation.

You'll need:

Most high street banks offer business accounts. Fees range from £0-15 per month for basic accounts. Online-only banks (Tide, Starling, Monzo Business) often have lower fees or free options.

Step 9: Set Up Accounting Records

From day one, you must keep accurate records of:

Options for managing accounts:

  1. Accountant: Full service, typically £800-2,000 per year for small companies
  2. Accounting software: Xero, QuickBooks, FreeAgent (£10-30/month) plus accountant for year-end
  3. Spreadsheets: Cheapest option but highest risk of errors

You must file annual accounts with Companies House and a Corporation Tax return with HMRC. Most small companies hire an accountant to handle this.

Step 10: Ongoing Compliance

After setup, you have annual obligations:

Confirmation Statement
File annually with Companies House (£13 fee). Confirms company details are up to date.3
Annual Accounts
Due 9 months after year end. Must be filed even if company made no profit.
Corporation Tax Return
Due 12 months after year end. Payment due 9 months and 1 day after year end.
PAYE and VAT (if applicable)
Monthly or quarterly filings if employing staff or turnover exceeds £90,000

Do I Need a Company Formation Agent?

Company formation agents (like 1st Formations, Rapid Formations) charge £30-100 to register your company. They provide:

You don't need an agent. The gov.uk service costs £12 and is straightforward if you follow this guide. Agents are useful if you want a registered office service or find the online form confusing.

How Long Does It Take?

The actual registration takes 10-20 minutes online. Companies House approval usually happens within 24 hours (often just a few hours).

Full setup timeline:

Common Mistakes to Avoid

  1. Using your home address publicly: Consider a registered office service for privacy
  2. Forgetting to register for Corporation Tax: Do this within 3 months of trading
  3. Not opening a business bank account: Mixing personal and business money causes tax and accounting headaches
  4. Ignoring annual filings: Late filings trigger automatic penalties (£150+)
  5. Poor share structure: Get advice if bringing in co-founders or investors

Next Steps

After setup, understand your ongoing responsibilities:

Sources

  1. GOV.UK — Choosing a company name, accessed 2026-06-12
  2. GOV.UK — Sensitive words and expressions in company names, accessed 2026-06-12
  3. GOV.UK — Running a limited company, accessed 2026-06-12
  4. GOV.UK — Registered office address requirements, accessed 2026-06-12
  5. GOV.UK — Directors' responsibilities and details, accessed 2026-06-12
  6. Companies House — Shares and shareholders guidance, accessed 2026-06-12
  7. GOV.UK — SIC codes list, accessed 2026-06-12
  8. GOV.UK — Register a limited company online, accessed 2026-06-12
  9. HMRC — Corporation Tax registration, accessed 2026-06-12

Last reviewed: 12 June 2026