Starting a business in the UK brings one core decision: which legal structure fits your goals. This guide walks you through forming a limited company, registering your company name, and handling compliance after incorporation. You will learn when to handle it yourself and when company formation services add value.
Company formation UK: what it means and who it’s for
A limited company is a separate legal entity. Your personal assets stay protected if the business faces debt or legal claims. You own shares. You appoint directors. The company pays Corporation Tax on profits.
Compare this to a sole trader: you and the business are one. You pay Income Tax on all profits. Your personal assets are at risk. Partnerships split ownership between two or more people, with shared liability.
Ltd company formation makes sense when you need limited liability, plan to reinvest profits at lower tax rates, or want credibility with clients and suppliers. Many investors and procurement teams prefer working with limited companies.
Before you start, decide on your company name, the number of directors and shareholders, your share structure, and your registered office address. Prepare valid identity documents for verification as all directors and People with Significant Control must complete identity verification at incorporation.
Forming a company UK: the essentials you must prepare
Every limited company needs at least one director. Directors run the company. You need at least one shareholder. Shareholders own the company. One person often fills both roles.
You must identify People with Significant Control (PSC). A PSC owns more than 25% of shares or voting rights. This information goes on the public register. All PSCs must complete identity verification when you register the company.
Your registered office address is where Companies House sends official mail. It must be a physical UK address. It appears on public records. Choose an address you control or use a professional service address. Companies House now applies stricter checks on registered addresses to prevent misuse.
SIC codes describe your business activity. Pick the code that best matches what you do. HMRC and other agencies use this to understand your sector. Wrong codes create compliance confusion later.
Share structure: most startups issue one class of ordinary shares at £1 each. You decide how many shares to issue and who owns them. Keep it simple unless you have specific investor or tax reasons to complicate it.
Register a company name: rules, checks, and common mistakes
Your company name must end with “Limited” or “Ltd” unless you qualify for an exemption. You cannot use sensitive words like “Royal” or “Government” without permission. Your name must not copy an existing registered name or trademark.
Check the Companies House register before you commit. Search for similar names. Check the UK Intellectual Property Office for trademarks. Avoid names that sound identical to competitors even if spelled differently.
Companies House now applies enhanced checks on company names to prevent fraud and misuse. Names that suggest connections to established brands or government bodies face closer scrutiny.
Rejections happen when names are too similar, use restricted words without approval, or suggest a connection to regulated activities you do not perform. Trademark disputes come later if you pick a name already in use commercially.
Register company online: step-by-step process (Companies House)
Visit the Companies House website. You need a Government Gateway account. Fill in the online form with your company name, registered office, directors, shareholders, PSC details, SIC code, and share capital.
All directors and PSCs must complete identity verification before you submit your application. You will need valid photo identification (passport or driving licence) and proof of address. Companies House verifies these documents digitally.
Pay the £100 incorporation fee online for digital filing. Same-day service costs £156. Submit the form. Companies House processes most applications within 24 hours on working days once identity verification is complete.
You receive your certificate of incorporation by email. This document proves your company exists. You also get your company number and authentication code. Download your incorporation documents from your Companies House account.
Register limited company: compliance tasks after incorporation
Your Confirmation Statement is due 12 months after incorporation, then annually. It confirms your company details are current. File it even if nothing changed. The fee is £50 online.
Your first annual accounts are due nine months after your first financial year ends. Your first financial year can be up to 18 months long. After that, accounts are due nine months after each year end.
Register for Corporation Tax within three months of starting to trade. HMRC sends you a letter with your Unique Taxpayer Reference (UTR). You file your Corporation Tax return 12 months after your year end. You pay tax nine months and one day after your year end.
VAT registration is required if your taxable turnover exceeds £90,000 in a rolling 12-month period. This threshold is frozen until at least 2027. You can register voluntarily below this threshold. Voluntary registration lets you reclaim VAT on purchases if you sell mainly to VAT-registered businesses.
Set up PAYE if you pay yourself or hire staff and the payments exceed the PAYE threshold. Register before your first payday.
Companies no longer need to maintain internal statutory registers. Companies House holds all statutory information centrally.
Company formation services vs DIY: when formation agents add value
Formation agents file your incorporation documents, check your company name, help structure shares and directors, provide a registered office address, handle identity verification requirements, and remind you of compliance deadlines.
They do not usually advise on tax strategy, prepare accounts, or file ongoing returns unless you buy those services separately.
DIY works if you understand share structures, PSC rules, identity verification requirements, and compliance calendars. Mistakes cost money. Late filings trigger fines. Wrong SIC codes confuse HMRC. Missing PSC information brings penalties. Incorrect share structures create tax problems. Failed identity verification delays incorporation.
Professional support costs less than fixing errors after incorporation. Formation agents also save time during setup so you focus on revenue. They handle verification processes efficiently and ensure your application meets current Companies House requirements.
Corporation formation for non-UK founders
You can register a UK company as a non-resident. You need at least one director. That director does not need to live in the UK. Shareholders can live anywhere.
You must provide a UK registered office address. Identity verification is mandatory for all overseas directors and PSCs. You must provide certified copies of your passport and proof of address. Some non-UK documents require notarisation or apostille certification.
The verification process for overseas applicants takes longer than for UK residents. Allow extra time for document certification and processing. Formation agents experienced with overseas applications help navigate these requirements.
UK banks require physical presence or video verification for overseas directors. Plan ahead. Compliance rules stay the same: you file accounts, confirmation statements, and tax returns on UK deadlines.
Professional support is strongly recommended. Managing identity verification, HMRC registration, Companies House requirements, and bank account opening from overseas adds complexity.
Why choose Audit Consulting Group for company formation united kingdom
Audit Consulting Group handles end-to-end company formation uk. You get incorporation, identity verification support, corporate governance setup, Corporation Tax registration, VAT advice, bookkeeping, and payroll from one team.
One team means fewer handoffs. You avoid gaps between formation, tax registration, and ongoing compliance. ACG structures your company correctly from day one. You stay compliant without tracking deadlines yourself.
ACG works with UK-based and overseas founders. You get support tailored to your situation. We handle identity verification requirements for all directors and PSCs, ensuring your application meets current Companies House standards.
Quick checklist: new register company in 24 to 48 hours (typical)
Decision checklist:
- Company name (checked against Companies House and trademarks)
- SIC code (matches your activity)
- Directors and shareholders (names, addresses, dates of birth)
- Share structure (number of shares, class, value)
- Registered office address (UK physical address you control)
- Identity documents for all directors and PSCs (passport or driving licence plus proof of address)
Compliance checklist:
- Corporation Tax registration (within three months of trading)
- First Confirmation Statement (12 months after incorporation, £50 fee)
- First annual accounts (nine months after first year end)
- VAT registration (if turnover exceeds £90,000 or you choose to register)
- PAYE setup (if paying yourself or staff above the threshold)
FAQ
How long does company formation UK take?
Companies House processes most online applications within 24 hours on working days once identity verification is complete. Identity verification adds processing time. Same-day service costs £156.
Can I register a limited company without living in the UK?
Yes. You need a UK registered office address. Directors and shareholders can live overseas. All overseas directors and PSCs must complete identity verification with certified documents. Processing takes longer than for UK residents.
Do I need an accountant after I form a company UK?
You are legally required to file annual accounts and a Corporation Tax return. Most founders use an accountant to prepare these correctly and on time.
What’s the difference between registering a company name and a trademark?
Registering a company name at Companies House does not give you trademark protection. Someone else could trademark your name. Register your trademark separately at the UK Intellectual Property Office if you want legal protection.
What information is public at Companies House?
Your company name, registered office address, directors’ names and dates of birth, shareholders’ names and shareholdings, PSC details, SIC code, and filed accounts are all public. Directors’ residential addresses are protected.
Call to Action: register a UK company with ACG support
Audit Consulting Group takes you from formation through ongoing compliance. You get one team for incorporation, identity verification, tax registration, accounts, and payroll. No gaps. No missed deadlines.
We handle all identity verification requirements for directors and PSCs. We ensure your application meets current Companies House standards. We guide overseas founders through enhanced verification processes.
Speak to ACG about your company formation uk needs. Book a consultation today.
Contact Audit Consulting Group:
Call us: +44 7386 212550
Email: [email protected]
