Setting Up A Limited Company
Forming a limited company is a significant step that brings real benefits — limited liability, potential tax efficiency and a more formal business structure. But it also brings ongoing obligations that you need to understand before you start. This pathway takes you through the registration process and the key things you need to set up correctly from day one.
You register a limited company online at companieshouse.gov.uk. The fee is £50 and the process takes about 24 hours, though it is often faster. You will receive a Certificate of Incorporation confirming your company number and the date of incorporation.
Before you register, you need to decide on your company name. It must be unique — check the Companies House register to make sure no one else is using it. It cannot be offensive or contain certain restricted words without permission. It must end in "Limited" or "Ltd".
You need a registered address. This is the official address for all correspondence from HMRC and Companies House. It must be a physical address in the UK (not a PO Box). Many people use their home address, but this becomes publicly visible on the Companies House register. A registered address service (from around £50–£100 per year) keeps your home address private.
You need at least one director and details of all shareholders. You will also need to provide a Standard Industrial Classification (SIC) code describing your main business activity. You can find the right code on the Companies House website.
You will also need to prepare a Memorandum of Association and Articles of Association. Companies House provides standard model articles that work for most small companies — you do not need to draft these from scratch.
Good to know
- Use a formation agent (from around £12–£20) to handle the registration if you want guidance through the process
- Choose your SIC code carefully — it affects how HMRC categorises your business
- Register your company name as a trademark if your brand is important to you
Watch out for
- Using your home address as the registered address without realising it becomes public
- Choosing a company name that is too similar to an existing trademark
- Not reading the model articles before accepting them — understand what you are agreeing to
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