To form a limited company in the UK, you need to choose a company structure, prepare the required details and register with Companies House. A standard online application costs £100 and is usually processed within 24 hours. Once approved, the Certificate of Incorporation confirms that the company has been legally formed.
Before you start the company registration process, you need to decide on the company name, registered office, directors, shareholders, share structure and SIC code. Since November 2025, directors and People with Significant Control (PSCs) also need to complete identity verification as part of the Company Formation process.
Once the company is registered, the work does not stop there. Directors also need to keep up with the company’s Companies House filings, tax obligations and accounting requirements.
Key takeaways
- A private company limited by shares needs at least one director and one shareholder and the same person can hold both roles.
- A person generally becomes a PSC when they control more than 25% of the company’s shares or voting rights.
- Corporation Tax registration must normally be completed within 3 months of starting to trade.
- VAT registration becomes compulsory when taxable turnover exceeds £90,000 over a rolling 12-month period.
- After incorporation, the company still has ongoing requirements for tax, financial records, annual accounts and Companies House filings.
What is a Limited Company and which type suits you?
A limited company has its own legal identity, separate from the people who own and run the business. It can enter contracts, own property and hold profits in its own name. Shareholders generally have limited liability, so their personal responsibility for company debts is limited to any amount they still owe on their shares.
The structure you choose affects how the business is owned and what information Companies House requires during registration. A private company can be limited by shares or by guarantee, while a public limited company has different requirements for its share capital and ownership.
Private Limited Company by Shares
For a business operating for profit, a private company limited by shares is the usual structure. Shareholders own the business through their shares and can receive profits as dividends. A single person can hold all the shares and act as the only director or ownership can be divided between several shareholders.
The shareholding also forms part of the incorporation process, so the founders need to decide how ownership will be divided before submitting the application.
Company Limited by Guarantee
A company limited by guarantee has members rather than shareholders and does not have share capital. Each guarantor agrees to contribute a specified amount towards the company’s debts if required. Charities, non-profit organisations and membership groups commonly use this structure.
Public limited companies work differently because their shares can be offered to the public, which also brings additional requirements for the company.
Public Limited Company (PLC)
PLCs work differently because they raise capital by offering shares to the public, which brings far heavier disclosure requirements and additional rules around how the company is managed and how shares are issued.
What you need before you register a Limited Company?
The details required for registration depend on the type of company you choose. Before registering a limited company, you need to have the company name, registered office address and registered email address, director and shareholder details, PSC information, share structure and SIC code ready for the application.
Choosing your Company Name
The company name must be different from existing registered names and cannot be too similar to another company. You can check whether a name is available using the Companies House name availability service. Some names containing sensitive words, such as “royal” or “chartered” require permission and a name that conflicts with an existing trademark will also not be accepted.
Registered Office Address
The registered office address must be a physical address in the same UK jurisdiction where the Limited Company is registered, such as England and Wales, Scotland or Northern Ireland. A PO Box cannot be used on its own. A home address can be used if it meets the requirements, although some directors choose a separate registered office address to keep their home address off the public register.
Registered Email Address
You must provide a registered email address when you set up a limited company. Companies House uses this address to send official communications about the company, but it is not published on the public register. The company must make sure someone regularly checks the address so important Companies House communications are not missed.
Directors and Shareholders
Every company needs at least one director aged 16 or over and at least one shareholder, who can be the same person as the director. This is common for sole-founder companies. A company secretary is no longer a legal requirement, though some companies still choose to appoint one, whether an existing director, an employee or an external firm.
A shareholder’s stake in the company doesn’t stay purely administrative once it crosses a certain size and that threshold determines whether they need to be recorded differently.
People with Significant Control (PSC)
Anyone holding more than 25% of the shares or voting rights or otherwise exercising significant influence over the company, counts as a person with significant control and needs to be recorded during registration. That register then has to stay current, which is one of the more routine tasks company secretarial teams handle on an ongoing basis.
Whether someone crosses the PSC threshold depends directly on how ownership is divided between shareholders in the first place.
Share Structure
The ownership of a company is decided by the number of shares issued and the value assigned to them. For example, a company could issue 100 ordinary shares with a nominal value of £1 each. A sole owner could hold all 100 shares, while two co-founders could divide them between themselves according to their agreed ownership.
For companies with more than one owner, the share split should be agreed before registration so that the application reflects who owns what. The number of shares, their value and the shareholders who hold them form part of the company’s registration details.
SIC Code and Governing Documents
A SIC code describes what the business does and up to four codes can be included when you register a company with Companies House. The registration also requires a memorandum of association and articles of association. The memorandum records the initial shareholders’ agreement to form the company, while the articles contain the rules for running the business.
For a standard company structure, the model articles can be used instead of having bespoke articles drafted. Where bespoke articles are needed, the appropriate application route depends on the company’s circumstances and the requirements of the online service.
Director Responsibilities to know about
Appointing a director is one of the requirements for registration, but the role also brings statutory duties that begin when the appointment takes effect, rather than when the company starts trading. Under the Companies Act 2006, directors must:
- Follow the company’s articles of association and use their powers for the proper purpose.
- Act in good faith to promote the company’s success and consider the wider impact of important decisions.
- Use independent judgement when making decisions, even when professional advice is taken.
- Apply reasonable care, skill and diligence to the role.
- Avoid conflicts of interest and declare any personal interest in a company transaction.
These duties continue throughout the director’s appointment. Failing to meet them can result in legal action, fines or disqualification from acting as a director for up to 15 years.
Identity Verification: What’s changed since November 2025?
Since 18 November 2025, identity verification has been a legal requirement for directors and People with Significant Control (PSCs). The date marked the start of a 12-month transition period, with the exact deadline depending on the person’s role and circumstances. For a new Limited Company Registration, directors need to complete verification and provide their Companies House personal code as required.
Verification can be completed through GOV.UK One Login. The service checks which verification method is available based on the individual’s circumstances. This can include using a suitable photo ID, answering security questions online or completing the final checks at a participating Post Office.
If the online process is not suitable, an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor, can verify the person’s identity on their behalf. This can be useful for someone who cannot complete the online check themselves or prefers an authorised professional to handle the verification. The ACSP must be registered with Companies House and supervised under UK anti-money laundering rules.
After successful verification, the individual receives a unique Companies House personal code. This code belongs to the person rather than the company and is used to connect their verified identity with their role at Companies House.
How to Register a Limited Company with Companies House
Once the company name, registered office, director, shareholder, PSC and other registration details are ready, the company formation process can be completed through Companies House. The main steps are:
1. Check your Company Name and Registration Details
Confirm that your chosen company name is available, then make sure you have the information needed for the application, including the registered office address and email address, director and shareholder details, PSC information, share structure and SIC code.
2. Verify your Identity
Complete identity verification through GOV.UK One Login or arrange it through an ACSP, before or during the application. Directors need to complete this step as required for the application and provide their Companies House personal code.
3. Submit your Application
Enter the registered office address, director and shareholder details, share structure and SIC code in the application. Pay the company registration fee to submit it to Companies House.
4. Receive your Certificate of Incorporation
Approval usually takes 24 hours for digital applications. Once the application is approved, Companies House issues a Certificate of Incorporation confirming the company’s registration. It includes the company number and date of incorporation.
For a standard private company, the online service is the quickest route to complete limited company registration. This also leads to a common question for people starting the company formation process in the UK.
Can I Register a Limited Company Online?
Yes, you can register a limited company online through Companies House if the company meets the requirements for the online service. The current online incorporation fee is £100 and applications are usually processed within 24 hours.
The online service covers private companies limited by shares and certain companies limited by guarantee. An application may need to be made by post where the online service does not apply, such as when the company will not use “Limited” or “Ltd” in its name.
How long does it take to Register a Limited Company?
How long each of the steps above takes depends heavily on which registration method is used, since digital and postal applications run on very different timescales. A standard digital application is usually approved within 24 hours.
Choosing the same-day digital option, available at a higher fee, gets a decision back the same working day if submitted early enough. Postal applications using Form IN01 take considerably longer, typically 8 to 10 working days once the form reaches Companies House.
How much does it cost to set up a Limited Company?
That choice between speed and method also determines what registration actually costs, since faster processing carries a higher fee.
Companies House raised its fees from 1 February 2026 as part of the wider Economic Crime and Corporate Transparency Act reforms, so any figures still circulating from older blog posts or forum threads are likely outdated.
Companies House Registration Fees:
| Registration method | Fee |
|---|---|
| Digital incorporation | £100 |
| Same-day digital incorporation | £156 |
| Postal incorporation (Form IN01) | £124 |
Confirmation Statement Fees
Company registration involves an initial fee, followed by an annual confirmation statement to keep the company’s registered details up to date. The current fee is £50 for online filing and £110 by post. If another confirmation statement is filed within the same 12-month payment period, no additional fee is charged.
Other costs to budget for
Beyond the statutory fees, most new companies factor in a registered office address service if they’d rather not use a home address, plus accountancy support for Corporation Tax registration, annual accounts and the confirmation statement itself. These costs vary by provider and by how complex the company’s structure is.
What happens after you Register a Limited Company?
The registration fee only covers incorporation itself. HMRC and several other obligations still need attention separately once the company legally exists.
The first steps after incorporation are about getting the company’s tax, payroll, finances and accounting systems in place.
Once these initial arrangements are in place, the company can move into its regular tax, payroll and reporting responsibilities.
Registering for Corporation Tax with HMRC
HMRC needs to know trading has started within 3 months of it happening. Registering online through Companies House often handles this automatically alongside incorporation; where a third party or software formed the company instead, it may need doing separately using the company’s 10-digit Unique Taxpayer Reference.
Setting up PAYE
If the company pays a director or employee a salary, it may need to register as an employer and operate PAYE. This is separate from Corporation Tax registration. The company should check HMRC’s employer registration requirements based on how it pays its directors and employees.
Pension Auto-Enrolment
If the company employs eligible workers, it may have workplace pension automatic enrolment duties. The position can be different for a company where the only person working is a sole director with no employment contract. The employer should check The Pensions Regulator’s rules to determine which duties apply to the company’s circumstances.
Registering for VAT
VAT registration becomes compulsory once taxable turnover exceeds £90,000 in any rolling 12-month period and voluntary registration below that threshold is also possible for businesses wanting to reclaim VAT on expenses.
Opening a Business Bank Account
Separating personal and business finances follows naturally from being a distinct legal entity rather than being simply good practice. Most banks ask for the Certificate of Incorporation plus director and shareholder details before opening an account.
Setting up your Accounting
Keeping finances separate only solves half the problem; the transactions passing through that account still need to be recorded systematically, whether through accounting software or an accountant managing the books directly. This becomes unavoidable once the first annual accounts and confirmation statement fall due, both of which company secretarial and accounting teams typically handle together rather than as separate tasks.
Common mistakes when forming a Limited Company
Each of the obligations above comes with its own deadline or condition and missing one is usually where new directors run into trouble.
- Choosing the wrong SIC code: Selecting a code without checking the full list can leave the company’s registered activities inaccurate. The code can be updated later, but choosing the right one during registration avoids unnecessary changes.
- Missing the Corporation Tax registration deadline: A company that has started trading must normally register for Corporation Tax within 3 months. Directors should confirm that registration has been completed rather than assume it has been handled.
- Not agreeing the share split: Co-founders should agree how shares will be divided before Limited Company Registration. Recording the agreed ownership from the start can help prevent later disputes.
- Overlooking identity verification: Directors and PSCs now have identity verification requirements. Anyone forming a company should check what verification steps apply to them before completing the registration.
Registering your Company is only the First Step
Receiving the Certificate of Incorporation confirms that the company has been formed, but directors then have ongoing director responsibilities to meet. These can include registering for Corporation Tax, setting up PAYE and workplace pension arrangements where applicable, filing an annual confirmation statement, keeping company records up to date and completing required identity verification.
Keeping track of these obligations helps the company remain compliant after incorporation. The requirements can change depending on how the company operates, so directors need to keep them under review rather than treating registration as the end of the process.
How Daniel Wolfson & Co helps?
After Limited Company Registration, the paperwork does not stop. Keeping statutory registers updated, filing confirmation statements on time and recording changes to the company can be difficult to manage when directors are also handling the day-to-day business.
Daniel Wolfson & Co provides company secretarial services to take care of these requirements, including:
- Statutory registers and minute books kept up to date
- Confirmation statements prepared and filed with Companies House
- A registered office address and mail forwarding service
- Company name changes, share transfers and changes to share capital
- Capital restructuring, including allotments, transfers, conversions and consolidations
- Persons with Significant Control (PSCs) and relevant legal entities identified and recorded
- Company forms, resolutions and meeting minutes prepared when required
- Support with company dissolution or restoration
With these responsibilities handled by a professional team, directors can spend less time dealing with company administration and have greater confidence that important records and filings are kept up to date.
Conclusion
Forming a company is only the beginning of a director’s administrative responsibilities. Keeping records accurate, meeting filing deadlines and dealing with changes as they arise all require ongoing attention.
Putting the right support in place early can reduce last-minute work and make company administration easier to manage as the business develops. If you need help with company formation or ongoing company secretarial requirements, Daniel Wolfson & Co can provide the support you need.
Ready to get started? Book a consultation with Daniel Wolfson & Co today or email us at office@danielwolfson.co.uk.
FAQs
How much does it cost to set up a limited company?
Digital incorporation costs £100 or £156 for same-day processing. Postal applications cost £124. There’s also a £50 annual confirmation statement fee once the company is registered.
What documents do I need to form a limited company?
A company name, registered office address, director and shareholder details, a SIC code and a memorandum and articles of association. Most online applications generate these documents automatically using standard model articles.
Can I register a limited company online?
Yes, most private companies limited by shares can be registered online. If the company has requirements that cannot be handled through the online service, such as certain company types or registration circumstances, you may need to use a paper Form IN01 application.
Can I be the sole director and shareholder of my own company?
Yes, a single person acting as both sole director and sole shareholder is a common structure, particularly for freelancers, contractors and small business owners.
How long does it take to register a limited company?
Digital applications are usually approved within 24 hours or same-day with that option selected. Postal applications take longer, typically 8 to 10 days.
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