UK Startup

How-to · Legal

How to set up a limited company

Done online in under an hour, costs £50, and gives you limited liability from day one. Here's the full process — including the seven decisions most founders make wrong on the form.

Last updated May 2026Reviewed against UK gov.uk sources

A UK limited company is its own legal person. You become a director and (usually) a shareholder. It's the right structure if you want personal liability protection, plan to pay yourself dividends, or want to bring on investors. The registration itself is straightforward — but the decisions you bake in at incorporation are surprisingly hard to undo, so take the extra 30 minutes to read this before you click submit.

Direct answer

Done online in under an hour, costs £50, and gives you limited liability from day one. Here's the full process — including the seven decisions most founders make wrong on the form. Use the key facts, step list and official source links on this page to confirm the decision before you spend money or register anything.

Cost
£50 (online)
Time
Approved same day
Min directors
1
Min shareholders
1

Checklist

Quick checklist

  • Run a name availability check
  • Pick your registered office address
  • List directors and PSCs
  • Choose SIC codes
  • Register at gov.uk/limited-company-formation (£50)
  • Open a business bank account
  • Register for Corporation Tax within 3 months
  • Diarise accounts and confirmation statement deadlines

Section 01

Decide before you click 'register'

  • Company name — must be unique, not 'too similar' to an existing one, and not contain sensitive words without permission.
  • Registered office address — public on the register; many founders use an accountant's or service provider's address for privacy.
  • Directors — at least one over 16. Their service address goes on the public register.
  • Shareholders — usually the same as directors at the start. 100 ordinary shares of £1 is the standard default.
  • PSC (People with Significant Control) — anyone holding >25% shares or voting rights must be declared.
  • SIC codes — up to four; pick the most accurate trade codes from the Companies House list.
  • Articles of association — most founders use model articles (free, fine for almost everyone).

Section 02

The registration — step by step

  1. 01

    Check the name

    Use Companies House name availability checker. Reject anything 'too similar' (Companies House's list includes plurals, punctuation variants, and common abbreviations).

  2. 02

    Go to gov.uk/limited-company-formation

    The official route is £50 online. Avoid £15 'formation agent' offers that lock you into ongoing services; the gov.uk service is faster and cheaper for most people.

  3. 03

    Create or sign in to your Companies House account

    Separate from your Government Gateway — you'll need both.

  4. 04

    Enter company details

    Name, registered office, SIC codes, directors, shareholders, share capital (£1 × 100 is the common default), PSC information.

  5. 05

    Adopt model articles

    Unless your accountant has told you otherwise, pick model articles. Custom articles slow incorporation by 5–10 days.

  6. 06

    Pay £50 and submit

    Most applications are approved within 24 hours; many within 4.

  7. 07

    Receive your certificate of incorporation

    Emailed as a PDF. Your company exists from the moment of incorporation, even if you do nothing else.

Section 03

What you must do in the first 90 days

  • Register for Corporation Tax with HMRC within 3 months of trading.
  • Open a business bank account in the company name.
  • Set up bookkeeping software — Xero, QuickBooks or FreeAgent (free with Mettle / Tide / NatWest).
  • If turnover will exceed £90,000 in a rolling 12 months — register for VAT.
  • If hiring — register as an employer for PAYE.
  • Note your accounting reference date (usually month-end of your incorporation anniversary).

Section 04

Recurring obligations

  • Annual accounts to Companies House (9 months after year-end).
  • Corporation Tax return (CT600) to HMRC (12 months after year-end; payment due in 9 months).
  • Confirmation statement (CS01) — £34/year, lists who controls the company.
  • Update Companies House within 14 days of changes (directors, addresses, share issues).

Partner offers

Before you go — claim your reader offers

Two offers we recommend to every UK founder. Codes are exclusive to readers of this guide.

See full terms

18+, UK residents only. Offers are subject to each provider's terms. Tide: £75 paid after completing £100 of card transactions within 30 days of opening, plus a further £125 paid after depositing £5,000 within 7 days (total £200, code REFER200). Capital on Tap: 7,500 points (≈ £75) after first card transaction within 30 days; credit subject to status. We may receive a commission if you sign up — it doesn't change the offer to you.

Common questions

Frequently asked questions