Set up a limited company in the UK: options and costs explained

Setting up a private limited company is perhaps simpler than you may think. You can incorporate yourself or use a professional to do this for you.

Here we look at what you need to form a company, the formation costs, and how the incorporation process works.

How do I set up a new company? Options and costs

There are several ways to register your company:

• Directly via Companies House
• Via an accountant
• Using a formation agent

1. Companies House (direct)

If you decide to set up a company directly via Companies House, you can be set up within 24 hours for £50. The price rose from £12 on 1st May 2024.

It is also possible to register via post using an IN01 form. However, this can take between 8 and 10 days and costs £71.

Companies House fees increased in May 2024 – see here.

2. via a Formations Agent

You can also use a formation agent to set up a new company.

• This option provides on-hand assistance, especially helpful for first-time company owners.
• Most agents offer additional services, such as a registered office address.
• You can set up a new company with our partner, 1st Formations, from just £52.99.

3. via an Accountant

You might consider hiring an accountant to set up your company.

• Hiring an accountant early on is a good idea, as they can advise on a range of matters before formation – including the best share structure to use and considerations for joint ownership with a spouse.
• An accountant may charge a one-off fee or include the formation service within their annual fee for new clients.
• You can browse our growing list of accountants here.

Now let’s look at the information you will need to have ready for the formation process.

8 things you need before you set up a limited company

Before you start the incorporation process, you will need some specific information.

• Most companies have shareholders.
• You may also set up a company limited by guarantee (e.g., charity or club). This guide focuses on companies limited by shares.

1. Limited company name

There are restrictions on names you can choose to avoid conflicts with existing names, trademarks, or misleading claims.

• Tip: Use the Companies House name checker to avoid delays.
• Read our company naming guide.

2. Your company’s official registered address

This must be a physical UK address where you can receive official communications.

• You may use your accountant’s address or your residential address.
• It must be in the same UK region where your company is incorporated (e.g., England and Wales, Scotland, or Northern Ireland).
• Guide to choosing your registered address.

3. Your company’s SIC code

This stands for the Standard Industrial Classification of Economic Activities. You must choose the SIC code(s) that best describe your business.

Here are some common examples of SIC codes:

You can search the SIC database here.

4. Share capital (for companies limited by shares)

You must provide details of the company’s share capital:

• List shareholders (names and addresses), their shares, and the share classes.
• Many small limited companies issue 100 ‘ordinary’ £1 shares.
• You can create new share classes later.
• If seeking investment, consider multiple share classes or preference shares.

5. Details of the company’s officials

To set up a company, you need at least one director.

• You may optionally appoint a company secretary.
• For each official, provide full name, date of birth, nationality, occupation, and address.
• Who can be a director.
• You can use a service address for public records to protect privacy.

6. Details of all People with significant control (PSC)

You must disclose individuals with ‘significant control’ (e.g., over 25% of shares or voting rights).

Read more in this guidance PDF.

7. Articles of Association

The Articles are the rules for running your company.

• You can adopt standard ‘model’ articles during incorporation.
• For complex companies, consider creating custom Articles with legal help.
• Guide to Articles and Memorandum.

8. Memorandum of Association

This confirms all shareholders agree to form the company. It is auto-generated during formation.

How do I form a new company in the UK from overseas?

If you’re based overseas, the process differs slightly for registering a UK presence with Companies House.

• Contact the Department for International Trade for guidance.
• Not all entities (e.g., unincorporated bodies, partnerships) can register.
• Complete and submit an OS IN01 form within one month of opening the business.
• Include a £71 fee (via cheque or postal order).
• Submit certified English translations of your constitutional documents and director details.

How do I know when my new company is successfully formed?

Once registered, you will receive a certificate of incorporation.

• This proves your company’s legal existence.
• Includes your company number and formation date.
• Digital copies are available instantly if registered online.

What shall I do next?

• You will get a letter from HMRC to register for Corporation Tax once trading begins.
• You may also need to register for VAT depending on your turnover.
• To pay yourself or hire staff, register as an employer with HMRC and set up payroll.
• Keep Companies House informed about any changes in your company (officials, addresses, activities).
• You (or your accountant) can submit updates online. See all forms here.