How to Incorporate a Limited Company via Companies House

Incorporating a limited company is a pivotal moment for any UK entrepreneur. It’s your legal foundation, your public face, and the structure that will shape how you pay tax and interact with clients. But while Companies House makes the process sound simple, there are crucial decisions, potential traps, and legal obligations that many founders only discover too late. This guide gives you the unvarnished truth: every step, every cost, and every decision point—so you can get it right first time, avoid nasty surprises, and start your business on solid ground.

Incorporating a limited company means you’re creating a separate legal entity—it’s not just a formality. Your company can own assets, employ staff, and enter contracts in its own name. As a director and shareholder, your personal liability is generally limited to what you invest or guarantee, which is a crucial legal protection if things go wrong.

This structure is different from being a sole trader or partnership. With a limited company, profits are subject to Corporation Tax, not Income Tax, and you have distinct reporting and compliance duties set by Companies House and HMRC. Your company’s details, including directors and shareholders, are published online, so there’s a public record of your business structure.

Deciding to incorporate isn’t just about image or credibility. It affects how you pay yourself, how much tax you pay, your eligibility for certain contracts (especially with larger clients or government), and even your company’s ability to raise investment or borrow money. Before you dive in, make sure you’re clear on why you’re choosing this route and what it means for you long-term.

• A company is legally distinct from its owners and directors.
• Limited liability protects your personal assets from most company debts.
• Company information and accounts are public on the Companies House register.
• You’ll face stricter record-keeping and filing requirements than sole traders.
• Incorporation can open doors to funding, contracts, and credibility.

Before you rush to complete the Companies House online form, pause. You’ll need several pieces of information and decisions sorted in advance—getting these wrong can cause costly delays or force you to re-incorporate later. The main requirements are your company name, registered office address, director and shareholder details, and your company’s constitution (the ‘articles of association’).

Your company name must be unique and comply with strict rules: it can’t be the same as another registered company, can’t include sensitive or offensive words, and must end with ‘Limited’ or ‘Ltd’. You can check name availability on the Companies House website, but beware—choosing a name that’s too similar to an existing business can lead to legal disputes or force a change.

You’ll need a registered office address in the UK (England and Wales, Scotland, or Northern Ireland). This address will be public and is where official post will go, so think carefully about privacy—using your home address is allowed, but not always wise. You also need to appoint at least one director (must be over 16 and not disqualified) and identify your initial shareholders (who can be the same people as directors).

• Choose a unique, compliant company name (and check for trademarks).
• Decide on a UK-registered office address (not a PO box).
• Have at least one director (individual, not another company).
• Identify at least one shareholder and define their shareholding.
• Prepare the articles of association—use the standard version or create your own.

You’ll also need to state your company’s SIC code (Standard Industrial Classification), which describes what your business does. Get this right: it affects how HMRC and Companies House classify your company, and can impact grant eligibility or statistics. The full list is on GOV.UK—don’t guess or pick one at random.

The actual incorporation process is straightforward if you’re prepared. You can register directly with Companies House online for most standard private companies limited by shares (the most common type), or by post if you need a bespoke structure or have unusual requirements.

Online incorporation is the fastest and cheapest route. You’ll need to create a Companies House account, gather all required information, and pay a fee (currently £12 for online, £40 by post). Most applications are approved within 24 hours if submitted online—postal applications take 8-10 days.

There are also third-party formation agents who can handle the process for you. They may offer extra services (like registered office addresses or VAT registration), but always check they are approved by Companies House. For most straightforward cases, doing it yourself online is perfectly manageable and cheaper.

• Digital certificates are legally valid—no need for a paper copy unless specifically required.
• Most online applications are processed in under 24 hours (excluding weekends and holidays).
• You’ll need to set up a Government Gateway account for tax registrations after incorporation.
• If you make a mistake, you may need to apply for a company name change or even re-incorporate—double check all entries.
• Bespoke articles, multiple share classes, or complex ownership structures may require a postal application or professional help.

The direct cost of incorporating a standard private limited company via Companies House online is currently £12 (as of June 2026). This is one of the cheapest company formation fees in the world. Postal applications are £40. If you use a formation agent, expect to pay anything from £20 to £150, depending on extra services (like registered office or business bank account introductions).

You’ll need to provide several pieces of information and supporting documents during the process. For each director and shareholder, you’ll need their full name, address, date of birth, and nationality. Directors must also provide a service address, which can be different from their residential address. Proof of ID is not typically required at the point of registration, but Companies House and HMRC may request it later to comply with anti-money laundering regulations.

Timescales are usually fast. Most online applications are processed within 24 hours, while postal applications take around 8-10 days. If your application is rejected (often due to name issues or missing information), you’ll need to resubmit, which delays the process.

You must also submit your company’s ‘articles of association’. The standard Model Articles are suitable for most startups and are available directly through the online process. If you want custom rules (for example, for multiple share classes or investor protections), you’ll need to prepare your own articles—this is best done with professional legal advice.

While the Companies House process is designed to be simple, many first-time founders make avoidable mistakes. The most common is choosing a company name that’s too similar to an existing one, which can lead to legal disputes, forced name changes, or even trademark infringement claims. Always search both the Companies House register and the UK Intellectual Property Office (IPO) database before settling on a name.

Share structure is another frequent pitfall. Some founders allocate shares without thinking about future investment, tax efficiency, or control. For example, giving 50% of shares to a business partner or spouse might seem fair at the start, but can cause huge problems if relationships break down or you want to bring in new investors.

Another issue is misunderstanding the difference between your registered office address and your trading address. The registered office is the official public address, but you can trade from anywhere. Using your home address as the registered office is allowed, but it will appear on the public record—consider using a commercial office or a professional address service if privacy is a concern.

• Don’t rush the name—check for both Companies House and trademark conflicts.
• Think carefully about share allocation and future-proof your structure.
• Use a professional registered address if you want to keep your home private.
• List all directors and shareholders accurately—mistakes can cause delays.
• Don’t copy and paste articles of association from another company without checking legal implications.

Finally, many new companies forget about ongoing compliance. Once incorporated, you must file a confirmation statement (annual return), annual accounts, and keep statutory registers up to date. Failing to do so can lead to fines or even your company being struck off the register.

Getting your certificate of incorporation is only the beginning. Immediately after your company is formed, you’ll need to set up statutory registers (for directors, shareholders, and PSCs—people with significant control), open a business bank account, and register for taxes. These are legal requirements, not optional extras.

You’ll also need to register with HMRC for Corporation Tax within three months of starting to trade, even if you made no profit. If you expect turnover to exceed the VAT registration threshold (£90,000 as of 2026), you must also register for VAT. Depending on your business, you may need to register for PAYE if you plan to employ staff.

Opening a business bank account is only possible once you have your incorporation documents. Each bank will have different requirements, but you’ll usually need your certificate of incorporation, memorandum and articles of association, and proof of ID/address for all directors and shareholders with significant control. Some banks may take a week or more to process your application, so plan ahead if you need to start trading quickly.

• Set up and maintain statutory registers (directors, shareholders, PSCs).
• Register for Corporation Tax within 3 months of trading (via GOV.UK).
• Consider VAT registration if turnover will exceed £90,000.
• Register as an employer with HMRC if you will pay staff.
• Open a dedicated business bank account using your incorporation documents.
• File your first confirmation statement and annual accounts on time.

Don’t forget about insurance requirements. Employers’ Liability Insurance is legally required if you employ anyone, and many clients (especially in construction, consulting, or creative industries) will expect Professional Indemnity or Public Liability cover. The Federation of Small Businesses (FSB) and the British Insurance Brokers’ Association can help you find suitable policies.

For most standard limited companies, incorporating directly via Companies House is straightforward and cost-effective. However, there are situations where using a formation agent or accountant makes sense. If you want customised articles of association, multiple share classes, complex ownership structures, or need immediate help registering for VAT or PAYE, a professional can save you time and reduce the risk of mistakes.

Formation agents are regulated and must meet anti-money laundering standards. Many offer additional services such as registered office addresses, secretarial support, or compliance reminders. Fees vary widely: basic packages start at around £20, but more comprehensive services can cost £100 or more. Always check that the agent is listed as an approved Companies House formation agent and read reviews before committing.

Accountants can also handle the incorporation process, and are invaluable if you need tax planning, advice on share structures, or help integrating company formation with your broader financial goals. The cost is higher (often £100-£400), but you’re paying for tailored advice as well as the paperwork. For growth-minded businesses or those with outside investors, this can be money well spent.

Be wary of agents who promise ‘guaranteed acceptance’ or unnecessary extras. Read the terms carefully—some services tie you into expensive ongoing contracts for registered office or secretarial services. The best approach is to decide what you genuinely need, and choose a provider accordingly.