How to register a limited company in the UK (step by step)

You register a UK limited company online with Companies House, it costs £50, and most incorporations are approved within 24 hours. You will need a company name, at least one director and shareholder, a registered office address, a SIC code, and details of anyone with significant control. Everything is done through the Companies House Web Incorporation Service at gov.uk.

That is the short answer. The longer answer is that a limited company is a legal entity separate from you, which changes how you pay tax, how you are liable for debts, and how much admin you sign up for. If you have not already decided between structures, our guide on sole trader vs limited company walks through when incorporating actually makes sense. Before you click through the forms, it helps to understand what each field actually means, and what mistakes are expensive to undo later.

Step One: pick a name that actually works

Your company name has to be unique on the Companies House register. You can check availability in seconds using the free name availability checker on gov.uk. If your preferred name is already taken, you will need to pick something else or consider a trading name.

There are a handful of rules to know. Certain words are restricted or need permission, such as "Royal", "Bank", "Chartered", or "British". Your name must end in "Limited" or "Ltd". It cannot be offensive or suggest a connection with government that does not exist. If the name is too similar to an existing company, Companies House can force you to change it later, which is a hassle.

One practical tip: check the domain name and social handles before you fall in love with a company name. A beautiful name is worthless if yourcompany.co.uk is parked by a squatter asking £3,000.

Step Two: decide on directors and shareholders

A limited company needs at least one director, who must be at least 16 years old. You can be the sole director, sole shareholder, and sole employee. That is how most small UK companies operate.

Directors have legal responsibilities. You must keep company records, file accounts and a confirmation statement, pay corporation tax, and act in the company's best interests. Shareholders own the company through shares. In a one-person company, you are usually both director and 100 percent shareholder holding a single £1 ordinary share.

If you are setting up with a co-founder, think carefully about the share split before you file. Changing it later is possible but involves paperwork and sometimes tax consequences. A clean 50/50 split can cause deadlock, so many co-founders opt for something like 51/49, or put a shareholders' agreement in place to handle disputes.

Step Three: sort your registered office address

Every UK company needs a registered office address. This is where Companies House and HMRC will send official post, and it becomes a matter of public record. Anyone can look it up online.

You have a few options. You can use your home address, which is free but means your address is publicly searchable forever. You can use your accountant's address, which many accountants offer as part of their service. You can pay for a registered office service from around £50 to £150 a year. Or you can use a virtual office if you want a prestigious postcode without the lease. We cover the tradeoffs more thoroughly in what a registered office address actually is, if you want to weigh them before you file.

The registered office must be a physical address in the UK jurisdiction where your company is incorporated (England and Wales, Scotland, or Northern Ireland). A PO Box alone is not acceptable, though some virtual office services combine a physical address with mail handling.

Step Four: choose your SIC code

SIC stands for Standard Industrial Classification. It is a five-digit code that tells Companies House what your business actually does. You can pick up to four codes if your business does several things.

Finding the right code takes a few minutes on the Companies House SIC code list. A consultancy might use 70229 (management consultancy activities other than financial management). A web agency might use 62020 (information technology consultancy activities). A cafe would use 56102 (unlicensed restaurants and cafes).

Do not agonise over this. You can change SIC codes later in your confirmation statement, and they have no direct tax implications. Just pick the closest match.

Step Five: identify Persons of Significant Control

A Person of Significant Control, or PSC, is someone who owns more than 25 percent of shares, holds more than 25 percent of voting rights, or has the right to appoint or remove most directors. In a one-person company, you are the PSC.

You have to provide the PSC's full name, date of birth, nationality, country of residence, service address, and usual residential address. The residential address is private and not shown publicly, but the service address is.

Getting this wrong is one of the more common errors. If you own 100 percent of the shares, do not leave the PSC section blank thinking it does not apply to you. It does.

Step Six: Memorandum and Articles of Association

The memorandum is a short statement saying the subscribers wish to form a company and agree to take at least one share each. The articles are the company's rulebook, covering how decisions are made, how shares are issued, and how directors are appointed.

For most small companies, you can use the standard model articles that Companies House provides for free. They are perfectly adequate unless you have specific needs, such as multiple share classes for investors, or a complex ownership structure. If you are unsure, use the model articles and change them later if needed.

Step Seven: submit the application

Go to the Companies House Web Incorporation Service, pay the £50 fee by card, and submit. Most applications are processed within 24 hours, often in a few hours. You will receive a Certificate of Incorporation by email with your company number.

The Certificate of Incorporation is your proof the company exists. Save it somewhere safe, and ideally print a copy. Banks, clients, and HMRC will all ask for the company number at some point.

Your company is now legally in existence. Congratulations. You now have new responsibilities, including filing a confirmation statement every year and filing annual accounts.

What to do next

Within a few days of incorporation, there are three things worth doing. Open a business bank account in the company name, since mixing personal and company money undermines the whole point of a limited company. Register for corporation tax with HMRC within three months of starting to trade, though HMRC will usually prompt you. Decide whether you need to register for VAT, which is compulsory if you expect turnover above £90,000 in the next 30 days or the previous 12 months.

If you will pay yourself a salary, you also need to register as an employer with HMRC and run a PAYE scheme. Most people in one-person limited companies pay themselves a small salary up to the National Insurance threshold, then take the rest as dividends, but the right approach depends on your circumstances.

Common mistakes worth avoiding

A few errors come up again and again. Incorporating before you have checked the name is available as a trade mark, which can force a rebrand later. Using your home address as the registered office without realising it becomes public. Missing the first confirmation statement deadline because no one told you when it was due. Not opening a separate business bank account and mixing personal and company money, which undermines the whole point of a limited company.

None of these are catastrophic, but they cost time and sometimes money to sort out. A 20-minute conversation with an accountant before incorporating can save you a lot of faff. Our first 30 days after starting a business checklist covers what else to get in place once the company is live.

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Not sure whether a limited company is even the right structure for you, or what to do in the first month of trading? Take the free five-minute business audit for a tailored checklist, or book a 15-minute call to talk it through.