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GeneralUpdated 2026-02-12

How do I register a limited company?

Quick Answer

Register online with Companies House for £50 (usually processed same day). You need a company name, registered address, director details, and shareholder information.

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Detailed Explanation

Registering a limited company with Companies House

What you need

- Proposed company name - Registered office address (in UK) - At least one director (must be 16+, not disqualified) - At least one shareholder - Share structure (number and value of shares) - SIC code (business activity code) - Memorandum and Articles of Association

Online registration (recommended)

- Cost: £50 - Usually processed same day (if submitted by 3pm) - Use Companies House Web Incorporation Service - Create Government Gateway account

Paper registration

- Cost: £71 - Takes 8-10 days - Form IN01 - Paper forms for Memorandum and Articles

Choosing a company name

- Check availability on Companies House - Cannot be 'same as' existing company - Cannot be offensive or suggest government connection - Limited or Ltd must be at end - 'Sensitive' words need approval (e.g., Royal, British, Group)

After registration

1. Register for Corporation Tax (within 3 months of starting to trade) 2. Set up business bank account 3. Register for VAT if applicable 4. Register for PAYE if employing 5. Get business insurance 6. Create share certificates

Ongoing requirements

- File Confirmation Statement annually (£34) - File Annual Accounts (9 months after year-end) - File Corporation Tax return (12 months after year-end) - Maintain statutory registers

Source: Companies House Registration Guide

Real-World Examples

Choosing a Company Name

Sarah wants to register a company selling handmade jewellery online. She initially chose 'Sparkle & Shine Jewellery Ltd', but it was rejected because 'Sparkle & Shine' was too similar to an existing company name. Sarah then opted for 'SparkleShine Creations Ltd' which was accepted.

Registered Office Address Implications

David runs his software development business from home. He uses his residential address as the registered office. This means his home address is publicly available on the Companies House register, which he later found was more accessible than he anticipated, leading to unsolicited marketing materials.

Share Allocation Example

Emily and Ben are starting a marketing agency. They decide to issue 100 ordinary shares with a nominal value of £1 each. Emily takes 60 shares (60% ownership) and Ben takes 40 shares (40% ownership), reflecting their agreed equity split.

Common Mistakes to Avoid

  • Using a company name that is too similar to an existing company's name, leading to rejection by Companies House.
  • Failing to specify a SIC code that accurately reflects the company's main business activity, which can impact future financial reporting and grant eligibility.
  • Forgetting to update the People with Significant Control (PSC) register when ownership changes, leading to potential fines.
  • Not understanding the implications of using a residential address as the registered office address, as it becomes publicly accessible information.

Can I register my company if I'm not a UK resident?

Yes, you can register a UK limited company even if you're not a UK resident. However, you will need a UK registered office address and may need to consider UK tax implications carefully. Seek professional advice.

What happens after my company is registered?

After registration, you'll receive a certificate of incorporation, which confirms your company exists. You then need to set up your company's bank account, register for Corporation Tax with HMRC, and comply with ongoing filing requirements (e.g., annual accounts and confirmation statement).

Can I change my company name after registration?

Yes, you can change your company name after it's registered. You need to pass a special resolution, notify Companies House with form NM01, and pay a fee. A new certificate of incorporation will be issued.

What is the difference between ordinary shares and preference shares?

Ordinary shares usually carry voting rights and entitlement to dividends, while preference shares often have priority for dividends and return of capital in case of liquidation, but may have limited or no voting rights. The share structure is defined in your Articles of Association.

Practical Tips

  • Before registering, thoroughly research your proposed company name on the Companies House website to avoid rejection due to similarity with existing names.
  • Use a business address or a company formation agent's address as your registered office to protect your personal address from being publicly available.
  • Choose the most accurate SIC code(s) for your business activities; you can select multiple codes if your business is diverse.
  • Create a shareholder agreement to clearly define the rights and responsibilities of each shareholder, especially regarding decision-making and profit distribution; it can prevent future disputes.

Related Questions

Do I need an accountant for my limited company?

No, it's not a legal requirement. You can prepare and file your own accounts and tax returns. However, many directors use accountants or accounting software for compliance and tax optimization.

How much does an accountant cost for a limited company?

UK accountants typically charge £100-300 per month for small limited companies. Annual accounts and tax returns cost £500-1,500 on a one-off basis. AI alternatives like AccountsOS cost £20/month after a 14-day free trial.

How do I close my limited company?

The cheapest option is voluntary strike-off (£10 fee, assets under £25,000). For larger companies, use Members' Voluntary Liquidation (MVL). Outstanding tax affairs must be settled first.

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