How do I set up a limited company in the UK?

You set up a limited company by registering it with Companies House online for £100, paid by card, and it is usually registered within 24 hours (GOV.UK, checked 2 October 2026). You must register the company before it starts trading (GOV.UK).

This guide is for anyone in the UK who wants to trade through a company rather than as an individual. It covers what you need before you start, what it costs, what tax the company pays, and the admin that repeats every year. Every figure below comes from GOV.UK and is dated in the sentence that uses it.

What is a limited company, and do I need one?

A limited company is a business that is a separate legal entity from its owners. The owners are responsible for the company's debts only up to what they put in, and this is called "limited liability" (GOV.UK, checked 2 October 2026). A sole trader is in the opposite position: they are personally responsible for all business debts (GOV.UK). The trade-off is admin — a company files accounts, a company tax return and a yearly confirmation statement, where a sole trader keeps records and files a tax return (GOV.UK). If you want limited liability, the company route is the one that gives it.

What do I need before I register a limited company?

GOV.UK lists eight things you need ready before you register: a company name; a registered office address (the official address Companies House writes to, and it is published); at least one director (the person who runs the company); shareholder(s) or guarantor(s) (the owners); people with significant control (PSC — the people who own or control the company); articles and memorandum of association (the written rules for how the company is run, plus the document saying the first owners agree to form it); a statement of capital (what shares have been issued and who holds them); and a SIC code (a number that describes what the business does) (GOV.UK, checked 2 October 2026). Have all of it written down before you open the form — the online application itself is short.

How much does it cost to set up a limited company?

Registering online costs £100, paid by card (GOV.UK, checked 2 October 2026). Registering by post costs £124, paid by cheque made out to "Companies House" (same page, checked 2 October 2026). Later changes cost extra: changing the company name is £20 online or £30 on paper (Companies House fees, updated 25 September 2026). And there is a yearly fee — see the admin section below.

How long does registration take?

If you register online, the company is usually registered within 24 hours (GOV.UK, checked 2 October 2026). If you register by post, it takes 8 to 10 days (same page, checked 2 October 2026). Having every detail ready before you start is the simplest way to avoid going back and forth.

Do I need to verify my identity to be a director?

Yes. Directors need a Companies House personal code, which you get by verifying your identity through GOV.UK One Login (GOV.UK, checked 2 October 2026). Each director needs their own code — one person cannot verify on behalf of another. GOV.UK says you may need the code to register, so get it before you fill in the form.

What tax does a limited company pay?

A limited company pays Corporation Tax, which is a tax on the company's profits. The small profits rate is 19% on profits of £50,000 or less, and the main rate is 25% on profits over £250,000, with marginal relief between £50,000 and £250,000. Those rates apply from 1 April 2023 (GOV.UK Corporation Tax rates, checked 2 October 2026). On top of that, directors pay Income Tax on the money they take out of the company (GOV.UK business legal structures, checked 2 October 2026). After you register, you get a UTR (Unique Taxpayer Reference — the company's tax reference number), and then you add Corporation Tax to the company's business tax account (GOV.UK, checked 2 October 2026).

What admin do I have to do every year?

Every company files a confirmation statement, which is a yearly check that the details Companies House holds are still correct — £50 online or £110 on paper (Companies House fees, updated 25 September 2026). You also file company accounts and a company tax return each year (GOV.UK business legal structures, checked 2 October 2026). Put both dates in a calendar the day the company is registered, so neither creeps up on you.

Do I need to register for VAT?

You must register for VAT (Value Added Tax — a tax added to most goods and services) if your taxable turnover goes over £90,000 in any rolling 12 months, and you must register within 30 days of the end of the month you went over. You must also register if you expect to go over £90,000 in the next 30 days alone (GOV.UK VAT registration, checked 2 October 2026). You can register voluntarily below £90,000 (same page). Most new companies are below the threshold at the start, but it is worth tracking turnover from day one.

Step by step

Choose your company name and check it is not taken. Search the Companies House register for the exact name before you build anything on it. There are rules on what names you can use, so read the GOV.UK guidance on the register your company page first.
Get your Companies House personal code. Verify your identity through GOV.UK One Login. Each director needs their own code (GOV.UK, checked 2 October 2026).
Write down the rest of the details. Registered office address, directors, shareholders or guarantors, PSC, articles and memorandum of association, statement of capital, and a SIC code (GOV.UK). Note that your registered office address is published, so decide what you want the world to see.
Register online and pay £100 by card. Do it at register your company on GOV.UK. The company is usually registered within 24 hours (GOV.UK, checked 2 October 2026). If you would rather post it, it is £124 by cheque to "Companies House" and takes 8 to 10 days (same page).
Get your UTR and add Corporation Tax. After registering, get the company's UTR and add Corporation Tax to the business tax account (GOV.UK, checked 2 October 2026).
Set up your records and your calendar. Track income and expenses from day one, and diarise the confirmation statement (£50 online — Companies House fees, updated 25 September 2026) and the company accounts and tax return (GOV.UK business legal structures).
Watch your turnover for VAT. Register once taxable turnover passes £90,000 in 12 months, or if you expect to pass it in the next 30 days (GOV.UK VAT registration, checked 2 October 2026).

AI shortcut: Use AI to turn your rough notes into a clean checklist before you touch the form — not to tell you what to do legally or tax-wise.

I am preparing to register a UK limited company with Companies House. Here are my details:
- Company name I want: [name]
- What the business does, in one sentence: [sentence]
- Registered office address: [address]
- Directors: [names]
- Shareholders and shares each: [details]
- People with significant control: [names]

Please do three things:
1. Turn this into a plain-English checklist of the items Companies House asks for, and flag anything I have left blank.
2. Suggest three short, plain-English descriptions of what my business does that I can edit and use in my own words.
3. List the questions I should ask a qualified accountant before I register.

Do not give me tax or legal advice. Just organise and check my own information.

Common mistakes

Registering a name that is too close to an existing company and having the application rejected.
Using a home address as the registered office without realising it is published on the public register.
Trading before the company is registered — GOV.UK is clear that you must register before trading.
Forgetting the yearly confirmation statement. It is £50 online (Companies House fees, updated 25 September 2026) and it is due every year, whether or not anything has changed.
Not reading the Corporation Tax rules before deciding how much to take out of the company — the company pays Corporation Tax on profits and directors pay Income Tax on what they take out (GOV.UK).

FAQs

How much does it cost to set up a limited company?

£100 to register online by card with Companies House, and £124 to register by post with a cheque (GOV.UK, checked 2 October 2026). There is also a yearly confirmation statement at £50 online or £110 on paper (Companies House fees, updated 25 September 2026).

How long does it take to set up a limited company?

Usually within 24 hours if you register online, and 8 to 10 days if you register by post (GOV.UK, checked 2 October 2026). Applications with missing details take longer.

Can one person set up a limited company?

Yes. A company needs at least one director and a shareholder or guarantor (GOV.UK, checked 2 October 2026), so one person can hold both roles. Every director still needs their own Companies House personal code from verifying their identity through GOV.UK One Login.

What is a PSC?

A PSC is a "person with significant control" — someone who owns or controls the company. You must list them when you register (GOV.UK, checked 2 October 2026). Their details go on the public register and are confirmed each year in the confirmation statement.

What is Corporation Tax and how much is it?

Corporation Tax is a tax on company profits. The small profits rate is 19% on profits of £50,000 or less, the main rate is 25% above £250,000, and marginal relief applies between £50,000 and £250,000 — rates that apply from 1 April 2023 (GOV.UK Corporation Tax rates, checked 2 October 2026).

What is a confirmation statement?

It is a yearly check that the information Companies House holds about your company is correct. It costs £50 online or £110 on paper (Companies House fees, updated 25 September 2026).

Can I change my company name later?

Yes. It costs £20 online or £30 on paper through Companies House (Companies House fees, updated 25 September 2026). Remember to update your website, invoices and anything else that carries the old name.

What to do next

If you are still deciding whether a company is right for you, read Sole trader or limited company: which should I choose? — it compares liability, tax and admin side by side. If you have not picked a business yet, start with our UK business ideas to find one that fits your time and budget.

Information, not tax, legal or financial advice. Figures checked against GOV.UK on 2 October 2026.

Last updated 2 October 2026

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