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 do this yourself or hire a professional to do it 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, the online incorporation fee is £100.

It is also possible to register by post using an IN01 form. This costs £124 and takes longer to process than an online application.

Companies House fees increased in February 2026 – see our guide to the current Companies House fees.

2. Via a formation 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 £102.99.

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 an appropriate physical address where documents delivered to the company can be expected to come to the attention of someone acting on its behalf and where delivery can be acknowledged.

• You may use your accountant’s address or your residential address, provided it meets the requirements.
• It must be in the same part of the UK in which your company is registered – England and Wales, Wales, Scotland or Northern Ireland.
• Guide to choosing your registered office 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 Companies House SIC database here or read our guide to choosing a SIC code.

4. Share capital (for companies limited by shares)

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

• List the subscribers and details of the shares they will take, including the number and class of shares.
• Many small limited companies issue ordinary shares with a nominal value of £1 each.
• You can create new share classes later, subject to the company’s articles and the normal company law requirements.
• If seeking investment, consider whether multiple share classes or preference shares may be appropriate.

5. Details of the company’s officials

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

• You may optionally appoint a company secretary.
• For each director, you will need to provide the information required by Companies House, including their name, date of birth, nationality, occupation and addresses.
• Who can be a director?
• You can use a service address for the public register rather than displaying your residential address.

Since 18 November 2025, new directors must also verify their identity for Companies House and provide their personal code as part of the incorporation process. See the official Companies House identity verification guidance.

6. Details of all people with significant control (PSCs)

You must disclose any people with significant control (PSCs) over the company.

This includes someone who meets one or more of the PSC conditions, such as holding more than 25% of the shares or voting rights, having the right to appoint or remove a majority of the board, or otherwise exercising significant influence or control.

PSCs are also subject to Companies House identity verification requirements. See the current GOV.UK guidance on PSCs.

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 that the subscribers agree to form the company and become members. It is created as part of the incorporation process.

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

You do not have to live in the UK to form a UK limited company. There is no general requirement for a director of a UK company to be UK-resident, although the company must have an appropriate registered office address in the part of the UK in which it is registered.

If you live overseas and simply want to incorporate a new UK limited company, you can follow the normal incorporation process described above. The directors and PSCs will still need to comply with the Companies House identity verification requirements.

What if an existing overseas company opens a UK establishment?

This is a different process. If an existing overseas company opens a place of business in the UK, it will normally need to register its UK establishment with Companies House.

• Complete and submit form OS IN01 within one month of opening the UK establishment.
• The current Companies House registration fee is £124.
• Supporting documents may be required, including certified copies of constitutional documents and accounts where applicable.
• Certified English translations are required where relevant documents are not in English.

See the GOV.UK guidance on registering an overseas company for the current rules.

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.
• It includes your company number and formation date.
• If you register online, your certificate will be provided electronically once the company has been incorporated.

What shall I do next?

• Once your company starts doing business, you must tell HMRC and register for Corporation Tax, normally within three months of starting business activity.
• You may also need to register for VAT depending on your turnover and circumstances.
• If you need to operate PAYE, register as an employer with HMRC and set up payroll.
• Keep Companies House informed about changes to information which must be reported, such as directors, registered office details and PSC information.
• You (or your accountant) can submit updates online. See the Companies House forms for limited companies.