Setting Up Your Limited Company

A complete guide to registering and establishing your UK limited company correctly from day one.

Last updated: 15 July 2026

Why Form a Limited Company?

A limited company is a separate legal entity from its owners (shareholders) and managers (directors). This structure offers several advantages including limited liability protection, tax efficiency, and enhanced credibility with clients and suppliers.

As a director, your personal assets are generally protected if the company encounters financial difficulties, making it a popular choice for UK entrepreneurs and contractors.

Choosing Your Company Name

Your company name must be unique and not "too similar" to existing registered companies. Before settling on a name, check availability using the Companies House name checker.

Permitted Names

Names ending in 'Limited' or 'Ltd', unique names not already registered, names that don't imply government connection.

Restricted Words

Words like 'Royal', 'Authority', 'British', 'Bank' require special permission. Offensive names are prohibited.

You can change your company name later if needed, but it involves an administrative process and updating all your stationery, website, and business documents.

How Do You Register a Limited Company?

You can register a limited company online through Companies House in as little as 24 hours. Here's what you'll need:

Registered Office Address

A UK address where official correspondence will be sent. This will be publicly visible on the Companies House register.

Director Details

At least one director aged 16 or over. You'll need their full name, date of birth, nationality, occupation, and residential address.

Share Structure

Details of initial shareholders and share allocation. Most simple companies start with 100 ordinary shares at £1 each.

Memorandum & Articles

The company's constitutional documents. You can use the standard 'model articles' provided by Companies House.

What Should You Do After Incorporation?

Once your company is registered, you'll receive a Certificate of Incorporation with your unique Company Registration Number. Your next steps should include:

Register for Corporation Tax

You must register with HMRC within 3 months of starting any business activity.

Open a Business Bank Account

Keep company finances separate from personal accounts. Most banks require your incorporation documents.

Set Up PAYE (if needed)

Consider VAT Registration

Mandatory if turnover exceeds £90,000, optional below this threshold.

Common Questions

Setting Up Your Limited Company FAQs

You can register a limited company online through Companies House in as little as 24 hours. Once registered, you'll receive a Certificate of Incorporation with your unique Company Registration Number.

Four things: a UK registered office address (this will be publicly visible on the Companies House register), at least one director aged 16 or over (with their full name, date of birth, nationality, occupation, and residential address), details of your initial shareholders and share allocation (most simple companies start with 100 ordinary shares at £1 each), and the company's constitutional documents. For the last one, you can simply use the standard 'model articles' provided by Companies House.

Not quite. Your company name must be unique and not 'too similar' to existing registered companies, so check availability using the Companies House name checker first. It must end in 'Limited' or 'Ltd', it can't imply a government connection, and words like 'Royal', 'Authority', 'British', or 'Bank' require special permission. Offensive names are prohibited.

Yes, but it involves an administrative process and you'll need to update all your stationery, website, and business documents, so it's worth getting the name right from the start.

Register for Corporation Tax with HMRC within 3 months of starting any business activity, open a business bank account to keep company finances separate from personal accounts (most banks require your incorporation documents), set up PAYE if you'll pay yourself or employees a salary, and consider VAT registration, which is mandatory if turnover exceeds £90,000 and optional below that threshold.

A limited company is a separate legal entity from its owners and managers, which brings limited liability protection, tax efficiency, and enhanced credibility with clients and suppliers. As a director, your personal assets are generally protected if the company encounters financial difficulties, making it a popular choice for UK entrepreneurs and contractors.

Sources

Rates and thresholds on this page come from the official HMRC and Companies House guidance below. Tax rules change, so check the source if you are relying on a figure.

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