How to Register a Limited Company in the UK (2026 Step-by-Step Guide)
- What is a limited company and should you register one?
- What you need before you register
- How to register online through Companies House
- What happens immediately after registration
- Setting up your company structure: shares and articles
- Ongoing obligations once your company is registered
- How much does it really cost to run a limited company?
Registering a limited company in the UK costs £50 online and takes less than 24 hours through Companies House. You need a company name, a registered address, at least one director, and at least one shareholder. Most founders do it themselves without a solicitor.
- What is a limited company and should you register one?
- What you need before you register
- How to register online through Companies House
- What happens immediately after registration
- Setting up your company structure: shares and articles
What is a limited company and should you register one?#
A limited company is a separate legal entity from you as an individual. This means your personal finances are protected if the business fails — your liability is limited to what you invested. Most freelancers, contractors, and small business owners benefit from operating as a limited company once their income exceeds roughly £30,000–£35,000 per year, because the tax savings often outweigh the added admin. If you are just starting out or keeping things simple, a sole trader setup may suit you better first.
What you need before you register#
Before you go to Companies House you will need: a company name (check it is available at find-and-update.company-information.service.gov.uk), a registered office address in the UK (this will be publicly visible — you can use a virtual office address service if you do not want your home address published), the details of at least one director (name, date of birth, nationality, occupation, and a service address), the details of at least one shareholder and how many shares they hold, and a Standard Industrial Classification (SIC) code that describes what your business does.
How to register online through Companies House#
Go to the Companies House web filing service (www.gov.uk/register-a-company-online). Create an account, then choose "Incorporate a company." Fill in your company name, registered address, director details, and share structure. Most single-director companies issue 100 shares at £1 each to the sole director. Pay the £50 registration fee by debit or credit card. You will receive a certificate of incorporation by email — usually within 24 hours, often the same day. That certificate includes your company registration number (CRN) which you will use on all official documents.
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What happens immediately after registration#
Once incorporated, three things need to happen quickly. First, open a business bank account — most banks require your certificate of incorporation and CRN. Second, register for Corporation Tax with HMRC within 3 months of starting to trade (gov.uk/register-for-corporation-tax). Third, decide whether you need to register for VAT. You must register if your taxable turnover will exceed £90,000 in any 12-month period. You can register voluntarily below that threshold if it suits your business (common if you sell to VAT-registered businesses).
Setting up your company structure: shares and articles#
Your articles of association are the rules that govern how your company is run. Companies House provides model articles which are fine for most small businesses — you do not need to create custom ones. Your share structure determines who owns the company. A simple structure is one class of ordinary shares, with each share giving equal voting rights and equal rights to dividends. If you have a co-founder, agree the split before you register and document it clearly. Changing the share structure later is possible but involves paperwork and potential tax implications.
Ongoing obligations once your company is registered#
A limited company has annual obligations: file a Confirmation Statement each year (£34 fee), file annual accounts with Companies House (deadlines depend on your accounting period), file a Corporation Tax return with HMRC each year, and pay Corporation Tax on profits (currently 19% for profits under £50,000, 25% for profits over £250,000 with a sliding scale between). If you pay yourself a salary, you need to run PAYE through the Real Time Information (RTI) system. Most small business owners use accountancy software like Xero, QuickBooks, or FreeAgent to stay on top of this.
How much does it really cost to run a limited company?#
The registration itself is £50. After that, the main ongoing costs are: an accountant (£500–£2,500 per year depending on complexity), accountancy software (£15–£40/month), a business bank account (free to £25/month), and a registered address service if you use one (£50–£200/year). Compare this to the tax savings: a director taking a salary at the personal allowance threshold (£12,570) plus dividends can save £3,000–£5,000+ in tax annually compared to operating as a sole trader at the same income level. For most people earning above £35,000 the maths strongly favours incorporation.
People also ask
How long does it take to register a limited company in the UK?
Online registration through Companies House typically takes less than 24 hours. In most cases you receive your certificate of incorporation the same day you apply. The £50 online registration is the fastest option.
Can I use my home address as a registered office?
Yes, you can use your home address as your registered office, but it will be publicly visible on the Companies House register. Many business owners use a virtual office address service (from £50–£200/year) to keep their home address private.
Do I need an accountant to register a limited company?
No. You can register a limited company yourself online for £50. However, once registered, most business owners find it worth paying an accountant to handle Corporation Tax returns and annual accounts, as the penalties for mistakes can exceed the accountant's fee.
What is the difference between a director and a shareholder?
A director runs the company day-to-day and has legal responsibilities. A shareholder owns part of the company. In most small businesses, the same person is both the sole director and sole shareholder — but they are legally distinct roles.
How do I pay myself from a limited company?
Most directors pay themselves through a combination of salary (up to the personal allowance threshold of £12,570 to avoid income tax) and dividends from company profits. Dividends are taxed at lower rates than salary, which is the main tax advantage of operating as a limited company.
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