Setting up a limited company in the UK is quicker than most people think. You can usually do it online in one day. But there are a few steps you must get right, both with Companies House and with HMRC. This guide explains each step in simple English.
All fees, rates and thresholds in this article were checked on GOV.UK on 14 October 2026. They apply to the 2026/27 tax year unless we say otherwise.
Before you start: is a limited company right for you?
A limited company is a separate legal “person”. It has its own money, its own tax and its own duties. Your personal money is usually protected if the business has debts. But a company also means more paperwork than being a sole trader. If you are not sure which is better for you, read our guide Sole trader vs limited company first.
Step 1: Choose your company name
Your name must follow the Companies House naming rules. It cannot be the same as a name that is already on the register, and some words need permission. Most private companies end with “Limited” or “Ltd”. If you do not want “Limited” in the name, GOV.UK says you must register by post.
Tip: check the name on the Companies House register, and also check that a website address and social media names are free.
Step 2: Choose a registered office address
Every company needs an official address in the UK. This is where letters from Companies House and HMRC will go, and it will be shown on the public register. Many people do not want their home address on the public record, so they use another address. You also need to give Companies House a registered email address.
Step 3: Choose your directors and verify your identity
You need at least one director. A company secretary is optional. Directors now need to verify their identity with Companies House through GOV.UK One Login. When you do this, you get a personal code. You only need to verify once. If there is more than one director, you will need each director’s personal code to register the company.
Step 4: Shareholders and people with significant control
A company limited by shares needs at least one shareholder. The shareholder can be the same person as the director. Many small companies have one person who is both.
You must also confirm the “people with significant control” (PSC). For example, this includes anyone who holds more than 25% of the shares or voting rights.
Step 5: Pick your SIC code
A SIC code is a number that describes what your company does. For example, there are codes for taxi services, building work, restaurants and retail. Choose the code that matches your main business activity.
Step 6: Register with Companies House
When you have all the details, you can register:
- Online: £100, paid by debit or credit card. GOV.UK says registration is usually done within 24 hours.
- By post (form IN01): £124, paid by cheque. Postal applications take 8 to 10 days.
You will also need a Government Gateway user ID for the company. You cannot use your personal one. When the company is registered, you get a certificate of incorporation and a company number.
Step 7: Register for Corporation Tax
A limited company pays Corporation Tax on its profits. You must tell HMRC that your company is active within 3 months of the start of its tax accounting period (usually when it starts to do business).
Corporation Tax rates (checked on GOV.UK on 14 October 2026):
- 19% small profits rate, for profits of £50,000 or less.
- 25% main rate, for profits over £250,000.
- Between £50,000 and £250,000, you may get Marginal Relief. This means the rate is somewhere between the two.
These limits are lower if your accounting period is short, or if your company has associated companies.
Step 8: Open a business bank account and keep good records
The company’s money is not your money. Open a separate business bank account and keep all receipts, invoices and bank statements. Good records make your year-end accounts faster and help you claim every allowable expense. If you do not like paperwork, a bookkeeper can help.
Step 9: Think about payroll and VAT
- Payroll (PAYE): if the company pays a salary, including to you as a director, you may need to register as an employer with HMRC and run payroll.
- VAT: you must register for VAT if your taxable turnover for the last 12 months goes over £90,000. You can also choose to register below this.
What you must do every year
Once your company is set up, there are regular jobs:
- Confirmation statement: you must check and confirm your company details with Companies House at least once a year. The fee is £50 online or £110 on paper.
- Annual accounts: filed with Companies House.
- Company Tax Return: filed with HMRC, and Corporation Tax paid on time.
- Directors: if you take money out as salary or dividends, you may also need to file a personal Self Assessment tax return.
Missing deadlines can lead to penalties, so put the dates in your diary.
How UK Tax Co can help
UK Tax Co helps clients all over the UK, online. We can set up your company for you, and then look after your accounts every year:
- Company Formation: £150
- Company Accounts: £50 per month (includes 1 payroll)
- Payroll: £10 per person per month
- Self Assessment tax return: £120
FAQ
How long does it take to set up a limited company?
Online registration with Companies House is usually done within 24 hours. A postal application takes 8 to 10 days.
How much does it cost to register a company?
The Companies House fee is £100 online or £124 by post (checked on GOV.UK on 14 October 2026).
Can I be the only director and shareholder?
Yes. A private company limited by shares needs at least one director and at least one shareholder, and this can be the same person.
Can I use my home address as the registered office?
You can, but it will be shown on the public register. Many people use a different address for privacy.
When do I need to tell HMRC about my company?
You must tell HMRC within 3 months of the start of your company’s tax accounting period, which is usually when it starts to do business.
This article is general guidance, not personal tax advice.
Need help? Call UK Tax Co on 020 7050 0712 or WhatsApp 07579566666.