A complete guide to forming your own limited company in the UK.
Before You Start
Is a Ltd Company Right?
| Ltd Company | Sole Trader |
|---|---|
| Limited liability | Personal liability |
| More tax options | Simpler tax |
| More admin | Less paperwork |
| Professional image | Personal |
| Often tax efficient £30k+ | Simpler below £30k |
What You’ll Need
| Requirement | Details |
|---|---|
| Company name | Unique, follows rules |
| Registered address | UK address |
| Director | At least one, 18+ |
| Shareholder | At least one |
| SIC code | Business activity |
| Share structure | Usually simple |
Step 1: Choose Your Company Name
Name Rules
| Rule | Details |
|---|---|
| Must be unique | Check Companies House |
| Cannot be offensive | HMRC can reject |
| Cannot imply | Government connection |
| ‘Sensitive’ words | Need approval |
| Must end with | Limited or Ltd |
Check Availability
| Step | Action |
|---|---|
| 1 | Go to find-and-update.company-information.service.gov.uk |
| 2 | Search proposed name |
| 3 | Check no exact match |
| 4 | Check similar names |
| 5 | Consider trademark too |
Sensitive Words
| Word Type | Examples |
|---|---|
| Professional | Chartered, Trust |
| Government | Council, Authority |
| Financial | Bank, Insurance |
| Royal | Royal, Prince |
| Need approval | From relevant body |
Step 2: Registered Office Address
Options
| Option | Pros | Cons |
|---|---|---|
| Home address | Free | Public record |
| Accountant’s address | Professional | May charge |
| Virtual office | Private | Monthly cost |
| Business premises | Professional | If you have one |
Important Notes
| Consideration | Details |
|---|---|
| Public record | Address is visible |
| Official correspondence | Goes here |
| Can change | After incorporation |
| Must be UK | England/Wales or Scotland |
Step 3: Appoint Directors
Director Requirements
| Requirement | Details |
|---|---|
| Minimum age | 18 |
| Number needed | At least 1 |
| Nationality | Any |
| UK resident | Not required |
| Not disqualified | Cannot be banned director |
Director Information Needed
| Information | Provided |
|---|---|
| Full name | Including middle names |
| Date of birth | Day shown publicly |
| Nationality | |
| Occupation | |
| Service address | Can differ from home |
| Home address | Kept private |
Director Responsibilities
| Duty | What It Means |
|---|---|
| Act in company’s interest | Not personal interest |
| Exercise reasonable care | Be competent |
| Avoid conflicts | Declare interests |
| Not accept benefits | From third parties |
| Declare interests | In transactions |
Step 4: Shareholders and Shares
Simple Share Structure
| Element | Typical Setup |
|---|---|
| Share capital | £1 to £100 common |
| Number of shares | 1 to 100 |
| Share value | £1 each typical |
| Shareholders | Directors often |
Example Structures
| Setup | Details |
|---|---|
| Sole owner | 1 share at £1 |
| Two equal partners | 50 shares each at £1 |
| Majority/minority | 75/25 split |
Shareholder Information
| Required | Details |
|---|---|
| Full name | Or company name |
| Address | |
| Share class | Usually ‘ordinary’ |
| Shares held | Number |
Step 5: SIC Codes
What They Are
| SIC Code | Purpose |
|---|---|
| Standard Industrial Classification | Describes business |
| Required | For registration |
| Multiple allowed | If relevant |
Common SIC Codes
| Business Type | SIC Code |
|---|---|
| IT consultancy | 62020 |
| Management consultancy | 70229 |
| Web design | 62012 |
| Retail online | 47910 |
| Construction | 41100 |
| Accountancy | 69201 |
Find Your Code
| Step | Action |
|---|---|
| 1 | Go to gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic |
| 2 | Search your activity |
| 3 | Note the 5-digit code |
Step 6: Register Online
Direct with Companies House
| Step | Action |
|---|---|
| 1 | Go to gov.uk/register-a-company-online |
| 2 | Create account |
| 3 | Start new application |
| 4 | Enter company name |
| 5 | Add registered office |
| 6 | Add director details |
| 7 | Add shareholder details |
| 8 | State share capital |
| 9 | Add SIC codes |
| 10 | Accept model articles |
| 11 | Pay £50 (standard) or £80 (same-day) |
Via Formation Agent
| Agent | Service |
|---|---|
| Formation agents | Handle paperwork |
| Often cheaper | £10-50 basic |
| Include extras | Registered address, templates |
| Popular ones | 1st Formations, Rapid Formations |
Costs Comparison
| Method | Cost |
|---|---|
| Companies House direct | £50 |
| Same-day service | £80 |
| Formation agent basic | £10-50 |
| Agent with extras | £50-200 |
Step 7: After Incorporation
You’ll Receive
| Document | Details |
|---|---|
| Certificate of Incorporation | Official proof |
| Company number | 8-digit identifier |
| Authentication code | For filing |
Immediate Actions
| Priority | Action |
|---|---|
| 1 | Open business bank account |
| 2 | Register for Corporation Tax |
| 3 | Consider VAT registration |
| 4 | Set up accounting |
| 5 | PAYE if employing |
Ongoing Obligations
Annual Requirements
| Requirement | Deadline |
|---|---|
| Confirmation Statement | Annually (£34) |
| Accounts filing | 9 months after year end |
| Corporation Tax return | 12 months after year end |
| Corporation Tax payment | 9 months + 1 day |
Records to Keep
| Record | Retention |
|---|---|
| Accounting records | 6 years |
| Directors’ details | Current + 10 years |
| Shareholder register | Indefinite |
| Minutes of meetings | Indefinite |
Register for Taxes
Corporation Tax
| Action | Details |
|---|---|
| Register | Within 3 months of starting |
| Online | gov.uk/register-for-corporation-tax |
| Unique Tax Reference | HMRC will send |
VAT
| Must Register If | Threshold |
|---|---|
| Turnover exceeds | £90,000 (2024/25) |
| Voluntary | Can choose below |
PAYE
| If | Register |
|---|---|
| Paying yourself salary | Yes |
| Employing others | Yes |
| Deadline | Before first payment |
Summary
| Step | Action | Cost |
|---|---|---|
| 1 | Choose unique name | Free |
| 2 | Decide registered address | Free/varies |
| 3 | Appoint directors | Free |
| 4 | Set up shares | Free |
| 5 | Find SIC codes | Free |
| 6 | Register online | £50-80 |
| 7 | Post-registration setup | Varies |
| After Incorporation | Priority |
|---|---|
| Business bank account | Immediate |
| Corporation Tax registration | Within 3 months |
| Accountant | Recommended |
| Proper bookkeeping | From day one |