How to Set Up a Limited Company UK (Step by Step)
Quick answer
You set up a limited company by registering it with Companies House online, which costs GBP 100 and usually takes under 24 hours. You need a company name, at least one director, a shareholder, a SIC code and a registered office address, plus identity verification. You can do it yourself; a formation agent is optional.
What you need to set up a limited company (2026/27)
| What you need | Detail |
|---|---|
| Company name | Must be unique, end in "Limited" or "Ltd", and not be too similar to an existing name or a trademark |
| At least one director | A real person aged 16 or over who runs the company and is legally responsible for it |
| At least one shareholder | Can be the same person as the director; a company limited by guarantee has guarantors instead |
| Share capital | A statement of capital; many companies start with a single GBP 1 ordinary share |
| SIC code | A code that describes what your company does (you can list more than one) |
| Registered office address | An "appropriate address" in the UK that goes on the public register; it must not be a PO box alone |
| People with Significant Control (PSC) | Anyone owning more than 25% of shares or voting rights, listed on the public register |
| Identity verification | Directors and PSCs must verify their identity and supply a Companies House personal code (mandatory since 18 November 2025) |
| Online registration fee | GBP 100, paid by debit or credit card (rose from GBP 50 on 1 February 2026) |
Step by step
- 1
Check a limited company is right for you
Confirm incorporating beats staying a sole trader for your profit level. A company can save tax at higher profits but adds annual accounts, a confirmation statement and a Company Tax Return. If in doubt, run the numbers first.
- 2
Choose and check your company name
Pick a unique name ending in "Limited" or "Ltd". Use the Companies House name availability checker to make sure it is not taken, too similar to an existing name, or clashing with a trademark.
- 3
Decide who is involved
Appoint at least one director (a real person aged 16 or over) and at least one shareholder, who can be the same person. Identify anyone with more than 25% of shares or votes as a Person with Significant Control (PSC).
- 4
Sort your address, share capital and SIC code
Choose a UK registered office address (it appears on the public register), set your share capital (often a single GBP 1 share), and pick a SIC code that describes what the company does.
- 5
Verify your identity
Since 18 November 2025, directors and PSCs must verify their identity through GOV.UK One Login or an authorised provider and obtain a Companies House personal code. Do this before or during registration.
- 6
Register with Companies House and pay GBP 100
Complete the online incorporation service, supplying your directors, shareholders, PSCs, share capital, SIC code and address. Pay the GBP 100 fee by card. Most companies are registered within 24 hours.
- 7
Register for Corporation Tax and set up the rest
Register for Corporation Tax (usually offered during incorporation, otherwise within 3 months of starting to trade), open a business bank account, and keep records ready for your annual accounts and Company Tax Return.
Setting up a limited company means registering a separate legal "person" with Companies House. That separation is the whole point: the company owns the money, signs the contracts and files its own tax return, while you become a director with duties to it. Registering online costs GBP 100 and is usually done within 24 hours. The table above is everything you need before you start; the steps are the process in order.
The thing worth knowing first: you can do this yourself. A formation agent ranking at the top of search for this query may headline a fee of a couple of pounds, but that is a teaser that bundles upsells; the actual Companies House online fee is GBP 100, and you pay it once, direct, with no middleman. The other recent change is identity verification: since 18 November 2025, directors and people with significant control must verify their identity and hold a Companies House personal code, which is part of why some agents now sell a verification service.
Not sure incorporating is even worth it? A company saves tax only above certain profit levels, and it adds real admin: an annual confirmation statement (GBP 50 online), annual accounts, and a Company Tax Return. Weigh it up in limited company vs sole trader, or run your own figures in the sole trader vs limited company calculator. If the simpler route suits you better, see how to register as a sole trader, and for the wider picture start with going self-employed in the UK.
Figures are for the 2026/27 tax year and are taken from gov.uk; fees and tax rules can change. This is general information, not financial or tax advice.
Frequently asked questions
How much does it cost to set up a limited company?
GBP 100 to register online directly with Companies House (the fee rose from GBP 50 on 1 February 2026). Paper registration costs GBP 124 and same-day registration GBP 156. Formation agents charge their own fees on top, often bundling extras you may not need.
Can I set up a ltd company myself?
Yes. You do not need a formation agent or accountant to incorporate. The Companies House online service walks you through it in about 15 minutes for GBP 100, and the company is usually registered within 24 hours. Agents are optional and add their own charge.
How long does it take to set up a limited company?
Online registrations are usually processed within 24 hours. Paper applications take 8 to 10 days. Same-day registration is available for GBP 156 if you apply before 3pm on a working day.
Should I set up a limited company or stay a sole trader?
It depends on profit and admin appetite. A limited company can be more tax-efficient at higher profits but carries more filing duties (annual accounts, a confirmation statement and a Company Tax Return). For lower profits a sole trader setup is simpler and free to start.
Do I have to register for Corporation Tax separately?
You can usually register for Corporation Tax at the same time as incorporating. If not, you must register with HMRC within 3 months of starting to do business (trading, advertising, buying, selling, renting or employing).
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.