How to Set Up a Ltd Company UK

A complete guide to forming your own limited company in the UK.

Before You Start

Is a Ltd Company Right?

Ltd Company	Sole Trader
Limited liability	Personal liability
More tax options	Simpler tax
More admin	Less paperwork
Professional image	Personal
Often tax efficient £30k+	Simpler below £30k

What You’ll Need

Requirement	Details
Company name	Unique, follows rules
Registered address	UK address
Director	At least one, 18+
Shareholder	At least one
SIC code	Business activity
Share structure	Usually simple

Step 1: Choose Your Company Name

Name Rules

Rule	Details
Must be unique	Check Companies House
Cannot be offensive	HMRC can reject
Cannot imply	Government connection
‘Sensitive’ words	Need approval
Must end with	Limited or Ltd

Check Availability

Step	Action
1	Go to find-and-update.company-information.service.gov.uk
2	Search proposed name
3	Check no exact match
4	Check similar names
5	Consider trademark too

Sensitive Words

Word Type	Examples
Professional	Chartered, Trust
Government	Council, Authority
Financial	Bank, Insurance
Royal	Royal, Prince
Need approval	From relevant body

Step 2: Registered Office Address

Options

Option	Pros	Cons
Home address	Free	Public record
Accountant’s address	Professional	May charge
Virtual office	Private	Monthly cost
Business premises	Professional	If you have one

Important Notes

Consideration	Details
Public record	Address is visible
Official correspondence	Goes here
Can change	After incorporation
Must be UK	England/Wales or Scotland

Step 3: Appoint Directors

Director Requirements

Requirement	Details
Minimum age	18
Number needed	At least 1
Nationality	Any
UK resident	Not required
Not disqualified	Cannot be banned director

Director Information Needed

Information	Provided
Full name	Including middle names
Date of birth	Day shown publicly
Nationality
Occupation
Service address	Can differ from home
Home address	Kept private

Director Responsibilities

Duty	What It Means
Act in company’s interest	Not personal interest
Exercise reasonable care	Be competent
Avoid conflicts	Declare interests
Not accept benefits	From third parties
Declare interests	In transactions

Step 4: Shareholders and Shares

Simple Share Structure

Element	Typical Setup
Share capital	£1 to £100 common
Number of shares	1 to 100
Share value	£1 each typical
Shareholders	Directors often

Example Structures

Setup	Details
Sole owner	1 share at £1
Two equal partners	50 shares each at £1
Majority/minority	75/25 split

Shareholder Information

Required	Details
Full name	Or company name
Address
Share class	Usually ‘ordinary’
Shares held	Number

Step 5: SIC Codes

What They Are

SIC Code	Purpose
Standard Industrial Classification	Describes business
Required	For registration
Multiple allowed	If relevant

Common SIC Codes

Business Type	SIC Code
IT consultancy	62020
Management consultancy	70229
Web design	62012
Retail online	47910
Construction	41100
Accountancy	69201

Find Your Code

Step	Action
1	Go to gov.uk/government/publications/standard-industrial-classification-of-economic-activities-sic
2	Search your activity
3	Note the 5-digit code

Step 6: Register Online

Direct with Companies House

Step	Action
1	Go to gov.uk/register-a-company-online
2	Create account
3	Start new application
4	Enter company name
5	Add registered office
6	Add director details
7	Add shareholder details
8	State share capital
9	Add SIC codes
10	Accept model articles
11	Pay £50 (standard) or £80 (same-day)

Via Formation Agent

Agent	Service
Formation agents	Handle paperwork
Often cheaper	£10-50 basic
Include extras	Registered address, templates
Popular ones	1st Formations, Rapid Formations

Costs Comparison

Method	Cost
Companies House direct	£50
Same-day service	£80
Formation agent basic	£10-50
Agent with extras	£50-200

Step 7: After Incorporation

You’ll Receive

Document	Details
Certificate of Incorporation	Official proof
Company number	8-digit identifier
Authentication code	For filing

Immediate Actions

Priority	Action
1	Open business bank account
2	Register for Corporation Tax
3	Consider VAT registration
4	Set up accounting
5	PAYE if employing

Ongoing Obligations

Annual Requirements

Requirement	Deadline
Confirmation Statement	Annually (£34)
Accounts filing	9 months after year end
Corporation Tax return	12 months after year end
Corporation Tax payment	9 months + 1 day

Records to Keep

Record	Retention
Accounting records	6 years
Directors’ details	Current + 10 years
Shareholder register	Indefinite
Minutes of meetings	Indefinite

Register for Taxes

Corporation Tax

Action	Details
Register	Within 3 months of starting
Online	gov.uk/register-for-corporation-tax
Unique Tax Reference	HMRC will send

VAT

Must Register If	Threshold
Turnover exceeds	£90,000 (2024/25)
Voluntary	Can choose below

PAYE

If	Register
Paying yourself salary	Yes
Employing others	Yes
Deadline	Before first payment

Summary

Step	Action	Cost
1	Choose unique name	Free
2	Decide registered address	Free/varies
3	Appoint directors	Free
4	Set up shares	Free
5	Find SIC codes	Free
6	Register online	£50-80
7	Post-registration setup	Varies

After Incorporation	Priority
Business bank account	Immediate
Corporation Tax registration	Within 3 months
Accountant	Recommended
Proper bookkeeping	From day one