How to Set Up a Limited Company in the UK: Step by Step

How to Set Up a Limited Company in the UK: Step by Step

You set up a limited company by registering it with Companies House. Online, it costs £100 and usually takes about 24 hours. Before you start, you need a company name, a UK address, at least one director and one shareholder. Every director also needs to verify their identity first.

Not sure a company suits you? Compare a limited company with being a sole trader first. If you’re ready, this guide takes you through every step.

Disclaimer: This article gives general information. It’s not legal or tax advice. Companies House rules and fees can change. Check GOV.UK or speak to a qualified accountant before you register.

Quick Answer

Choose a name. Pick a UK registered office and a registered email address. Decide your directors, shareholders and people with significant control. Verify each director’s identity. Register online through GOV.UK for £100. Then set up Corporation Tax, a business bank account and payroll if you’ll pay yourself a salary.

What Do You Need Before You Register a Limited Company?

You need a name, a UK registered office address, a registered email address and at least one director. You also need at least one shareholder and a list of people with significant control. Each director needs a Companies House personal code. Shareholders confirm the company has a lawful purpose.

Gather these before you open the form:

  • Company name. It must end in “Limited” or “Ltd”. It can’t match a name already on the register.
  • Registered office address. A real address where post reaches you, in the part of the UK where you register. It’s public. You can’t use a PO Box.
  • Registered email address. Companies House uses it to contact the company. It isn’t public.
  • Directors. At least one person aged 16 or over. You can be the only director.
  • Shareholders. At least one. A director can also be the only shareholder.
  • People with significant control (PSCs). Anyone with more than 25% of the shares or votes. If you own it all, that’s you.
  • SIC code. A number that describes what your business does.
  • Articles of association. The company’s rule book. The online form creates the standard version for you.

The email, address and lawful purpose rules started in March 2024, when UK company law changed. Every company needs a registered email address and an “appropriate” registered office. Shareholders also confirm they’re forming the company for a lawful purpose. Companies House won’t accept the application without this statement.

How Do You Set Up a Limited Company Step by Step?

Follow eight steps. Check your name and choose your address. Verify each director’s identity. Create the company’s Government Gateway ID. Fill in the online form, confirm the lawful purpose and pay £100. Then wait for your certificate. Most online applications finish within about 24 hours.

  1. Check your name. Search the Companies House register. Also check it isn’t too close to an existing name or a trade mark.
  2. Choose your registered office. Use your home, your office or an address service. Anyone can see it on the register.
  3. Verify each director’s identity. Each director gets a Companies House personal code. You need every director’s code before you apply.
  4. Create a Government Gateway user ID for the company. You can’t use your personal one.
  5. Fill in the online form. Add the name, address, email, SIC code, directors, shareholders and PSCs.
  6. Confirm the lawful purpose statement. Shareholders tick this as part of the form.
  7. Pay £100 by card. You register your company through GOV.UK.
  8. Get your certificate of incorporation. It arrives by email, usually within 24 hours.

You can apply by post on form IN01 instead. It costs £124 and takes 8 to 10 days.

The £100 fee is only the start. Banking, accounts and yearly filings add more to the cost of setting up a limited company.

How Does Identity Verification Work?

Every director must verify their identity with Companies House. It’s been a legal requirement since 18 November 2025. You verify once, free, through GOV.UK One Login. Use an app, online questions or a Post Office. An accountant can also do it as an authorised agent, often for a fee.

You verify your identity once and get a personal code. The code belongs to you, not the company. You use it again for any other company you join.

Keep your code safe. Share it only with people you trust, like your accountant.

PSCs who aren’t directors also verify. They have 14 days to give their code once the company lists them.

What Do You Do After Your Company Is Registered?

Set up Corporation Tax with HMRC, open a business bank account and keep company money separate. Register for PAYE before you pay any salary. Register for VAT if your turnover will pass £90,000. Then note your filing dates, because the first deadlines come fast.

Corporation Tax. You can choose to set up Corporation Tax when you register the company. If you didn’t, add it to the company’s HMRC business tax account.

Bank account. Open an account in the company’s name. Company money is not your money. Keep it separate from day one.

Payroll. Register as an employer with HMRC before the first payday. This includes a salary paid to yourself.

VAT. Register once your taxable turnover passes £90,000 in 12 months. You can register earlier if it helps.

Records. Start your books on day one. Keep every receipt and every sale.

What Are Your First Deadlines?

Your first accounts are due at Companies House 21 months after you register. After that, accounts are due 9 months after each year end. Corporation Tax is usually payable 9 months and 1 day after the year end. A confirmation statement is due every year.

Filing Who gets it When it’s due
First annual accounts Companies House 21 months after the company was registered
Later annual accounts Companies House 9 months after the financial year end
Corporation Tax payment HMRC 9 months and 1 day after the accounting period ends, for most companies
Company Tax Return HMRC 12 months after the accounting period ends
Confirmation statement Companies House At least once every 12 months

Many directors also file their own Self Assessment return, for example when they take dividends.

Do You Need an Accountant to Set Up a Limited Company?

No. You can register a company yourself online once your details are ready. Many founders use an accountant for what comes next: payroll, bookkeeping, VAT, annual accounts and the Company Tax Return. An accountant can also verify your identity as an authorised agent.

The form itself is easy. The mistakes happen later. Typical ones are mixing personal and company money, missing the first accounts deadline and taking dividends without profit.

Our limited company registration service forms the company and sets up payroll and Corporation Tax. We also track every deadline from day one.

Setting Up the Right Way

Gather your details first. Verify each director’s identity before you open the form. Then register online and set up tax, banking and payroll in the first week.

DASA’s company registration service handles the whole setup and stays with you for the yearly filings. Tell us your company name and how many directors you’ll have. We’ll confirm which plan fits.

This article gives general information about forming a UK limited company. Companies House and HMRC published these fees and rules, checked in October 2026. It’s not legal or tax advice. Speak to a qualified accountant about your own situation.

Last reviewed October 2026 by Raqeeb Marzook, ACCA.

Frequently Asked Questions

What is the Companies House fee to register a company?

£100 online, or £124 by post on form IN01.

How long does it take to register a limited company?

Online applications usually finish within about 24 hours. Postal applications take 8 to 10 days.

Do directors need to verify their identity?

Yes. Identity verification is a legal requirement. Each director verifies once and gets a Companies House personal code.

Can I be the only director and shareholder?

Yes. One person can be the only director, the only shareholder and the person with significant control.

When are a new company’s first accounts due?

21 months after the company was registered at Companies House.

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