Setting up a limited company is one of the most important decisions you will make when starting a business in the UK. It gives your business its own legal identity, limits your personal liability, and makes it easier to raise finance, work with larger clients, and build credibility.
The good news is that registering a limited company in the UK is a straightforward process that most people can complete online in under an hour. This guide walks you through every step, the current costs, and what you need to do after your company is incorporated.
What a Limited Company Actually Is
A private company limited by shares is the standard structure for almost every small UK business. It is a separate legal entity from its owners, which means the company’s finances are separate from your personal finances. If the company takes on debts or is sued, your personal assets are generally protected — hence the word “limited”.
The two main roles are:
- Director — runs the company day to day. You need at least one director, and directors can also be shareholders.
- Shareholder — owns the company through shares. You need at least one shareholder, and it can be the same person as the director.
So a one-person business can be a limited company. There is no minimum share capital; many companies start with a single £1 share.
Before You Start: What You Need
Gather these details before you begin, because the online application will ask for all of them:
- A company name — it must not be identical or too similar to an existing company on the Companies House register, and it must end with “Limited” or “Ltd”. Certain words (like “Royal”, “Bank” or “Charity”) need prior approval.
- A UK registered office address — this must be a physical address in the same part of the UK where the company is registered (England and Wales, Scotland, or Northern Ireland). It will appear on the public register, so many owners use a registered office service rather than their home address.
- Director and shareholder details — full names, dates of birth, nationalities, and contact details for every director and person with significant control (PSC).
- A SIC code — the Standard Industrial Classification code describing what your company does (for example, “62012” for business and domestic software development). You can look these up in advance.
- Your articles of association — the rules about running the company. Most small companies use the standard model articles, which you can select during the online application.
Step 1: Verify Your Identity (Now Mandatory)
Since 18 November 2025, every director and person with significant control must verify their identity with Companies House before a company can be incorporated. This was introduced under the Economic Crime and Corporate Transparency Act.
You can verify your identity for free directly through GOV.UK One Login, or through an authorised formation agent. Verification is a one-off per person — if you have already verified for one company, you do not need to do it again for another. Do this step before starting the incorporation application.
Step 2: Check and Reserve Your Company Name
Search the Companies House register to make sure your chosen name is available. The name must be unique and must follow the naming rules. If your preferred name is taken, consider a variation rather than trying to argue a case — applications with disputed names are rejected.
Step 3: Fill In the Online Application
The Companies House web incorporation service walks you through the form. You will enter the company name, registered office address, director and shareholder details, share structure, SIC codes, and PSC information.
One of the details Companies House now asks for is a lawful purpose statement, confirming that the company is being formed for a lawful purpose. This is a quick confirmation rather than a long statement.
You will also need a registered email address for the company, which Companies House will use to contact you. This is not published on the public register, but keeping it monitored is a legal requirement.
Step 4: Pay the Incorporation Fee
At the time of writing, the Companies House fees are:
- Online incorporation: £100 (usually registered within 24 hours)
- Postal incorporation: £124 (takes 8 to 10 days)
- Same-day service: £156 (available through approved software filing only)
The online fee doubled from £50 to £100 on 1 February 2026, so ignore any older guide still quoting £12 or £50. You can complete the whole process yourself on GOV.UK’s guide to setting up a company without paying an agent.
Step 5: Receive Your Certificate of Incorporation
Most online applications are processed within 24 hours. You will receive a certificate of incorporation with your company number and registered office address. From that moment, the company legally exists.
What to Do After Incorporating
Incorporation is the beginning, not the end. These are the tasks to handle next:
Register for Corporation Tax
You must tell HMRC that your company is liable for Corporation Tax within three months of starting to trade. You can do this through your Government Gateway account. There is no fee for this step.
Set Up a Business Bank Account
Legally, a limited company’s money must be kept separate from your personal money. Open a business bank account in the company’s name before you start trading.
File Your Confirmation Statement
Once a year, you must file a confirmation statement confirming that the company’s details on the public register are correct. The fee is £50 to file online, and missing it can lead to penalties.
Keep Accounting Records
You must keep company and accounting records, and file accounts with Companies House and a company tax return with HMRC every year. Many owners appoint an accountant at this stage — the cost is an allowable business expense.
Consider VAT Registration
If your company’s VAT-taxable turnover passes the threshold, you will need to register for VAT. Because this is such a common next step for new companies, we put together a detailed VAT registration guide covering the threshold, rates, and how to register.
Limited Company vs Sole Trader: Which Should You Choose?
If you are still deciding on your structure, the key differences are:
- Cost to start: registering as a sole trader is free; a limited company costs £100 online.
- Liability: sole traders have unlimited personal liability; limited company owners have limited liability.
- Paperwork: sole traders have minimal reporting duties; limited companies must file accounts, confirmation statements, and tax returns.
- Tax: companies pay Corporation Tax on profits; sole traders pay Income Tax and National Insurance on profits.
For many freelancers and very small businesses, starting as a sole trader and incorporating later can be the sensible path. For businesses planning to hire staff, raise investment, or take on larger contracts, incorporating from day one is usually worth it.
FAQs About Registering a Limited Company in the UK
How long does it take to register a limited company?
Online applications are usually processed within 24 hours. Postal applications take 8 to 10 days, and same-day incorporation is available through approved software filing.
Can a non-UK resident register a limited company in the UK?
Yes. There is no UK residency requirement for directors, but the company must have a UK registered office address and you will need to verify your identity with Companies House.
Do I need an accountant to register a company?
No. You can register the company yourself directly with Companies House. Most owners appoint an accountant after incorporation to help with tax and filing duties.
What does it cost to register a limited company?
The statutory fee is £100 online, £124 by post, or £156 for same-day filing. Formation agents may charge extra on top of this if you use one.
Conclusion
Registering a limited company in the UK is a simple, low-cost process: verify your identity, choose a name, file online with Companies House for £100, and you will usually have your certificate within 24 hours. The real work starts afterwards — Corporation Tax registration, a business bank account, and annual filings.
If you found this guide useful, explore more practical help in our Business category — including our guide to choosing between a sole trader and a limited company and our step-by-step VAT registration guide.
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