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UK Company Formation

How to register a Limited Company in the UK (2026 guide)

Updated 17 May 2026

Forming a Limited Company in the UK is one of the simplest legal procedures in the world. This guide walks you through what you need before you start, what each form does, what it costs, and what to do the day after Companies House approves you.

What is a Limited Company?

A UK Limited Company (Ltd) is a legal entity that's separate from its owners. It can sign contracts, own assets, take on debt, sue and be sued — all in its own name. If the business fails, the owners' personal assets are protected: their liability is “limited” to the unpaid amount on the shares they hold.

That separation is the main reason founders choose Ltd over sole-trader. The trade-off is more admin: annual statutory accounts, a Confirmation Statement, Corporation Tax filings, and public-facing records.

Sole trader vs Limited Company

  • Liability: sole traders are personally liable for business debts; Ltds are not.
  • Tax: sole traders pay Income Tax + Class 2/4 NI on profit. Ltds pay Corporation Tax (19-25%) on profit, then directors take a small salary + dividends.
  • Admin: sole-trader admin is one annual Self-Assessment. Ltd admin is accounts + CT600 + Confirmation Statement + ongoing PAYE/VAT.
  • Privacy: Ltd director names and the registered office are public on Companies House. Sole-trader details aren't public.
  • Credibility: Ltd often opens doors for B2B contracts that require limited liability and a registered company number.

The rough rule of thumb: if you're earning above ~£30,000 profit annually, an Ltd usually saves tax even after extra accounting costs.

8 things you need before applying

  1. Company name that's available on the Companies House register — use our free name checker.
  2. Registered office address in the UK (England & Wales / Scotland / Northern Ireland).
  3. At least one director (16+), with three pieces of personal identity info: town of birth, telephone number, National Insurance number, passport number, driving licence number, or mother's maiden name (Companies House picks three).
  4. At least one shareholder (can be the same person as the director).
  5. People with Significant Control (PSC) details — anyone with 25%+ shares, 25%+ voting rights, or significant influence.
  6. A SIC code describing the business (up to 4).
  7. Share structure — usually 100 ordinary £1 shares for a single-shareholder company.
  8. Memorandum & Articles of Association — almost everyone uses the model articles, which Companies House provides for free.

Step-by-step incorporation

  1. Check the name. Free tools like our company name checker hit the Companies House register live. Look for distinctiveness, not just availability — Companies House can reject “too similar” names.
  2. Check the trade mark register. Search the UK IPO trade-mark register. You can't register a company name that infringes a live trade mark.
  3. Pick your structure. Single shareholder vs multi. Standard ordinary shares vs A/B share classes. See our single vs multi-shareholder guide.
  4. File IN01. Either directly with Companies House for £50, or via a formation agent who bundles it for £9.99-£14.99 + the £50 fee.
  5. Wait for the certificate. Online filings are usually approved the same business day; postal ones take 8-10 working days.
Tip:file on a Monday or Tuesday so a delayed approval doesn't spill across the weekend.

What does it cost?

  • Direct with Companies House: £50 (digital) or £71 (postal).
  • Via a formation agent: £9.99-£14.99 + the £50 gov fee. Agents subsidise the headline price because their margin is in registered-office services, bank-account referrals, and renewals.
  • Registered office service: £30-50/year if you don't want your home address public.
  • Service address for directors: usually similar.
  • Accountant: not needed for incorporation. Budget £40-80/month for an accountant to handle ongoing books, or £19/month for BahiKhata.

Total realistic spend to incorporate + one year of admin overhead: £100-200.

What to do the day after incorporation

  1. Open a business bank account. Tide, Starling, Monzo Business, or any high-street bank. Most can be done online in under an hour.
  2. Set a year-end. By default Companies House sets your accounting reference date to the last day of the month you incorporated, one year on. You can change it with form AA01.
  3. Note your Confirmation Statement due date. 14 days after the anniversary of incorporation, annually. Late filing is a criminal offence — though in practice Companies House just chases you.
  4. Decide on VAT. Read our VAT threshold guide. You only have to register above £90,000 turnover — but voluntary registration can be worth it.
  5. Set up PAYE if you're running payroll (including paying yourself a director's salary).
  6. Bring it to BahiKhata. Paste your company number — we pull everything from Companies House and set every deadline for you.

Common mistakes

  • Using a generic name that's too close to an existing brand → name change later costs time and stationery.
  • Publishing your home address as the registered office when you don't need to.
  • Mixing personal and business money before the company bank account exists. Open the account first.
  • Missing the first Confirmation Statement because the date is buried in your emails.
  • Not paying yourself a director's salary in year one — you miss out on NI credits toward the State Pension.

Frequently asked

How much does it cost to register a Limited Company in the UK?
Filing the digital IN01 form directly with Companies House costs £50 since 1 May 2024 (it used to be £12). Formation agents bundle the £50 fee into packages starting from around £9.99-£14.99 — they make their money on registered-office add-ons or bank-account referrals.
How long does it take to register a company?
Online digital incorporations usually complete the same business day — most are approved within 4-6 hours. Postal IN01 forms take 8-10 working days. Friday submissions may not complete until the following Monday.
Can I register a company by myself?
Yes — head straight to gov.uk/limited-company-formation and complete the IN01 online for £50. You'll need your three pieces of personal identity info, a UK registered-office address, director details, and a SIC code.
Do I need a UK address to register a company?
You need a UK registered office address in the country of incorporation (England & Wales, Scotland, or Northern Ireland). It must be a real address that can receive mail — a PO Box isn't enough. Many formation agents offer a London / Edinburgh / Belfast registered-office service for around £30-50/year.
Can I use my home address?
Yes, but it becomes public on Companies House. If you'd rather not, use a registered-office service from a formation agent. Service addresses for directors are also published — same caveat applies.
What is a SIC code and do I need one?
A 5-digit Standard Industrial Classification code that tells Companies House what your business does. You must pick at least one and can pick up to four. We have a full guide explaining how to choose.
Can I be the only director and shareholder?
Yes. The simplest UK Limited Company has one director who is also the sole shareholder. Many one-person consultancies, ecommerce stores, and SMEs are structured this way.
Do I need an accountant to incorporate?
No. The IN01 form is plain-English and the digital service is designed for non-accountants. You'll want an accountant (or BahiKhata) after incorporation for ongoing bookkeeping, VAT, and year-end filings — but not for incorporation itself.
What happens after Companies House approves my registration?
You receive a Certificate of Incorporation by email with your company number. HMRC is notified automatically and sends a Unique Taxpayer Reference (UTR) within 14 days. Your first Confirmation Statement is due 14 days after the anniversary of incorporation. Your first statutory accounts are due 21 months after incorporation.
Can I change anything about the company later?
Yes. You can change the company name (NM01, £8 online), the registered office (AD01, free), add or remove directors (AP01 / TM01, free), change the year-end (AA01, free), and amend SIC codes via the next Confirmation Statement. None of these need an accountant.
What about VAT, PAYE, and Corporation Tax?
Corporation Tax registration happens automatically — HMRC opens a CT record using your company number. PAYE and VAT are separate registrations, only needed if you're employing staff (including yourself as a salaried director) or if your turnover is approaching the £90,000 VAT threshold.
Can I have a Limited Company while employed full-time elsewhere?
Yes — there's no legal restriction. Check your employment contract for non-compete or moonlighting clauses, but the company itself is fine. Many UK side-hustles run as Ltds for liability protection.