Starting a UK Limited Company:
A Simple 10-Step Guide

Check that a limited company is right for you

A limited company is legally separate from you. Its money is not your money, and if things go wrong your personal risk is normally limited to what you put in. In return, there is more paperwork: annual accounts, a confirmation statement, and company details on the public register. For some people, staying a sole trader is simpler and just as tax-efficient - it depends on your profits and plans. This is exactly the kind of thing we can talk through with you for free.

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Official guidance: Set up a limited company: step by step (GOV.UK) · Limited companies explained (GOV.UK)

Choose your company name

Your name must usually end in "Limited" or "Ltd", cannot be the same as an existing company's name, cannot be offensive, and needs permission if it contains sensitive words or suggests a link to government. Punctuation and small tweaks don't make a name different - "Hands UK Ltd" and "Hand's Ltd" count as the same as "Hands Ltd". And even a cleverly spelled name can be challenged after registration: Companies House gives "EZ Electrix 4U Ltd" vs "Easy Electrics For You Ltd" as an example of names "too like" each other, where a company can be forced to change its name if someone complains.

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Check if your name is free here: Company name availability checker (Companies House)

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Official guidance: Choosing a company name (GOV.UK)

Appoint your director(s) - and verify their identity

Every company needs at least one director. A director must be 16 or over and not disqualified, and is legally responsible for running the company and making sure accounts and returns are filed. A company secretary is optional for private companies.

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New rule: since 18 November 2025, company directors are legally required to verify their identity with Companies House. A new director needs a Companies House "personal code" as part of the company registration. You can verify yourself for free using GOV.UK One Login - or we can verify your identity for you: I Sumar & Co is registered with Companies House as an Authorised Corporate Service Provider (ACSP), supervised by HMRC.

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Official guidance: Appointing directors and secretaries (GOV.UK) · Verifying your identity for Companies House (GOV.UK)

Decide your shareholders and who has "significant control"

Every company limited by shares needs at least one shareholder - this can be the same person as the director, so one person really can own and run the whole company. You will also need to identify any "people with significant control" (PSCs) - usually anyone with more than 25% of the shares or voting rights. PSCs also need to verify their identity (within 14 days of being registered, if they are not already a verified director).

Official guidance: Shareholders and people with significant control (GOV.UK)

Prepare your company's rule book

Two documents govern every company: the memorandum of association (the signed agreement to form the company) and the articles of association (the written rules for running it). If you register online, the memorandum is created automatically, and most small companies simply adopt the standard "model articles".

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Official guidance: Memorandum and articles of association (GOV.UK)

Choose your registered office address and email

Your registered office must be a real, physical address in the UK, in the same country your company is registered in (for example, a company registered in England and Wales must have its registered office in England or Wales). PO Boxes are not allowed. You must also give Companies House a registered email address - this is not shown on the public register, but you must read what arrives there.

Pick your SIC code (what your company does)

Every company chooses at least one SIC code - a five-digit number describing what the business does (for example, 56103 is a takeaway). You must pick from the official condensed list or your registration may be rejected.

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Official guidance: Condensed SIC code list (Companies House)

Register with Companies House

With all the above ready, registering online usually takes less than 24 hours. It costs £100 online (or £124 by post - fees changed on 1 February 2026). Most people can register for Corporation Tax at the same time. Once approved, you receive your certificate of incorporation - your company officially exists.

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Official guidance: Register your company (GOV.UK) · Companies House fees (GOV.UK)

Register for the right taxes

·      Corporation Tax - usually set up when you register the company. If not, you must tell HMRC within 3 months of your company becoming active - for example trading, providing services, or buying and selling with a view to profit. HMRC posts your company's 10-digit Unique Taxpayer Reference (UTR) to your registered office.

·      VAT - you must register once your VAT-taxable turnover goes over £90,000 in any rolling 12 months (you can register voluntarily below that).

·      PAYE - if the company will pay anyone a salary - including just you as director - it must register as an employer before the first payday.

Official guidance: Corporation Tax (GOV.UK) · When your company is 'active' for Corporation Tax (GOV.UK) · When to register for VAT (GOV.UK) · Register as an employer (GOV.UK)

Open a business bank account and diary your deadlines

Because the company is a separate legal person, its money must be kept separate from yours - in practice that means a business bank account in the company's name. Then put these dates in the diary:

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• First annual accounts - 21 months after the date you registered

• Annual accounts after that - 9 months after your financial year end

• Corporation Tax payment - 9 months and 1 day after your accounting period ends

• Company Tax Return - 12 months after your accounting period ends

• Confirmation statement - At least once a year (£50 online), within 14 days of your review period ending