How to Register a Company in the UK

A company is a legal entity that allows business owners to formally run their business. In the United Kingdom (UK), it must be registered with the Companies House. This is the very first step to take that will permit you to trade.

Running a company is highly beneficial because, among other things, it affords protection from personal liability for company debts or losses. The different business structures in the UK formalise your business and give it legal standing and a legal identity separate from your personal identity. They also come with certain tax advantages or corporation tax benefits.

If you want to learn exactly how to register a company in the UK, keep reading below. This guide sets out the essential steps you need to follow before, during and after the registration process and more. Let’s begin. 

Types of Companies You Can Register in the UK

In the UK, there are several business structures you can choose from to run your venture. You need to identify the correct one for your needs because this will determine the nature of your business, your responsibilities as a director, your obligations and more. 

The three primary business entities you can choose from are:

• Private limited company (Ltd) by shares: This type of legal entity is owned by private shareholders whose liability is limited. This means a clear split between their personal and business assets and liabilities.
• Public limited company (PLC): A public limited company is a company whose structure is such that directors’ liability is also limited. However, unlike a private limited company, its shares are publicly listed on a stock exchange, allowing members of the public to purchase and sell shares based on the company’s financial performance.
• Limited liability partnerships: A type of hybrid form of legal entity that sits between a partnership and a private limited company. This structure affords limited liability protection to partners. 
• Sole proprietors: Usually individuals who run a business and who are not afforded liability protection. This means there is no separation of assets and liabilities and they can be held personally responsible for a business’ debts or financial difficulties.

While there are other formal business structures, such as companies limited by guarantee (often used by non-profits) or community interest companies (where profits are redistributed for the social good), the private limited company by shares is one of the most common types in the UK.

Key Terms in Company Registration

Before you register a company in the UK, you need to be familiar with key terms that are a part of the company registration process. Below are several that stand out.

Registered office address

Every private limited company must have a registered office address. If you plan to operate from a physical location such as an office, shop, restaurant or other, you’ll receive all formal communication from government bodies and courts at your registered office address. 

However, if you plan on working from home or elsewhere and you do not want your private address listed publicly on the Companies House register, you can also opt to receive correspondence and be officially served with formal documents at a virtual office address. 

This is a real address that is used for receiving formal communication and is associated with your business. However, it is often offered as a service by third-party providers and it can come with advantages such as mail and parcel forwarding, greater privacy of your personal address and lower costs compared to renting office space. 

All legal and official communication should reach you at your registered UK office address, whether it’s a physical office space you occupy or a virtual address.

Company director

A private limited company must have at least one director. These individuals are responsible for running the company and managing it to the best of their ability. The owner of the business and the director can be one and the same person. The same is true for directors and shareholders. 

Directors bear a strong responsibility in managing the business with integrity and professionalism as well as in the best interests of the company. 

According to the Companies Act of 2006, some of their key responsibilities include:

• Running the company according to its memorandum and articles of association.
• Acting in the best interest of the company ahead of personal interests or relationships.
• Performing one’s duties to the best of one’s ability, including leadership, management, understanding financials, etc.
• Avoiding conflicts of interest that may jeopardise the company’s performance ahead of personal interests.
• Declining gifts or benefits from third parties that may negatively influence your decision-making for the company’s best interests.
• Acting transparently and ethically, especially in cases where you may receive undue benefits as a result of your position.

It is also important to note that failure to perform your duties as a director could have you disqualified from being able to hold the position of a director for a period of 15 years.

Limited liability

The last but very important point to raise is that of limited liability. As mentioned earlier, a sole proprietorship in the UK is a business structure where the personal assets and liabilities of the owner are in essence joined together with those of the business. Since they are not separate from the business, any business debts or legal proceedings against the business will mean that the owner is personally liable for them. 

However, with a private limited company, your personal assets receive protection. In the event of legal proceedings against the business such as a debtor seeking relief for money owed, your personal assets cannot be attached or sold in execution to satisfy that debt. 

It is the business that will be liable for money owed but not the director(s) in terms of their personal assets.

Benefits of registering your company

Registering a company in the UK has important advantages. Apart from establishing a separate legal entity that protects your personal assets from any liabilities of your business, you can improve your credibility with customers and suppliers.

When they interact with your business, they know that you are a reputable organisation that has legal standing. This affords them greater confidence in interacting with your company as they know that you operate on a professional basis and you are not a fly-by-night operation.

Further advantages include access to low-cost or free business bank accounts for better financial management. Having a separate business bank account to your personal bank account not only permits you to better manage your finances but also affords you the legal protection that is associated with running a UK Ltd company.

Additionally, your business could qualify for certain corporation tax exemptions.

Step-by-Step Guide to Register a Company in the UK

The company registration process in the UK is simple and straightforward. It entails a few important steps, covered in more detail below.

You can either proceed to follow the steps on your own or you can seek the assistance of a third-party vendor who can help you register your company online. Such vendors typically offer different tiers of company formation packages which may contain additional services such as the issuing of a business phone number, help with creating your business website, assistance with VAT, PAYE, etc.

Whichever option you choose, bear in mind the details that follow.

Step 1: Decide on the type of company

It is highly advisable that you consult with a legal expert in deciding which business structure is right for you and your entrepreneurial goals. 

Choosing the right business structure will depend on:

• The type of business you plan to run in a particular industry
• The levels of personal liability you are willing to shoulder with regard to running your business and
• Whether you’d like to issue share capital to the public as traded on stock exchanges and more.

A UK limited company is the most common option.

Step 2: Choose a company name

If you’ve chosen to proceed with a private limited company, the next step is to select a name for your business. The Companies House has a search tool or name availability checker on their website that allows you to perform such checks for free.

Your company name will appear on all official documentation associated with your business and will be what your business is known as. It is important that your company name does not contain restricted words and that it is available for use. It is also essential that it is not similar to other existing business names.

Furthermore, it must contain the abbreviation “Ltd.” or state the word “Limited” after the name.

Also worth noting is that you can have a separate and different trading name to your company name. This trading name is what your business will be known by to your customers and suppliers.

Step 3: Prepare the key documents

It is now time to prepare your memorandum of association. This document is a compulsory aspect that details your business’ initial shareholders, their shareholding structure and percentages of shares as well as their agreement.

You will also be required to prepare articles of association, which are essentially the rule book for how you’ll run your company. These contain the company’s rules and other essential details.

Step 4: Register your company online

If you choose to register your company without the help of a third-party vendor, you will next need to set up an account with the Companies House. You can do so online, which is the fastest option.

However, there is also a postal option to submit all your documentation, although this can take several days to be processed.

If registering online, you will need to complete the compulsory fields which include company details like the company’s name, the director(s), the shareholding structure, the company’s registered address and more.

The filing costs of registration range from £12 for online processing or £40 for postal processing.

Step 5: Provide a registered office address

Your business will need to have an official address. Here, you can choose from different types of physical addresses. These include a physical office, a residential address or a virtual office address, with the latter being a highly popular option.

It is important to note that the business address is published and that it is publicly available. This means that if you would like to retain your privacy and keep your home address private, you should opt for a physical address or a virtual address when registering our business.

Step 6: Appoint directors and shareholders

The next step is to appoint your director(s) and shareholder(s). It is a legal requirement that your company has at least one director and shareholder.

As mentioned above, the director of the company has legal responsibilities and compliance obligations which must be followed strictly to avoid negative legal repercussions.

Worth noting is that there is no limit for how much share capital should be invested in a business. For example, if you have one director who is also the shareholder, the share that they will own will be 100% and the value of the share can be as little as £1.

Step 7: Pay the registration fee and complete the process

Finally, you will need to pay the required amounts mentioned above, which will depend on whether you are opting for an online or postal registration option.

Once the Companies House receives your application, you will receive confirmation within a few days to around one week, or possibly more.

You will also then receive your company incorporation certificate, laying the groundwork that will enable you to trade and conduct business within the bounds of the law.

After Registration: Setting Up Your Business

Once your UK company is successfully registered with the Companies House, it’s time to set up the practical side of running your new business. From opening a separate business account to registering for taxes and applying for the right licences, the information below will help you establish a professional business presence and ensure compliance from day one.

Open a business bank account

Opening a separate business account is one of the first and most important steps after forming your own company. Keeping your business finances separate from your personal funds helps you manage financial records, pay taxes accurately and maintain clear official communications with HMRC.

A business bank account helps protect your limited liability status by showing that your company (limited) is a distinct legal entity.

There are several free business account options in the UK, ideal for small businesses and non-UK residents starting out. Many digital company banking solutions offer online setup, low or no monthly fees and user-friendly dashboards for managing your business finances efficiently.

Register for corporation tax

All UK-registered companies must register for corporation tax with HMRC within three months of starting to trade. Even if your company with the Companies House was only recently incorporated, you’re legally obliged to notify HMRC once you begin business activity.

The standard corporation tax rate is currently 25%, though smaller profits may qualify for reduced rates. Payments are usually due nine months and one day after your accounting period ends, so keeping accurate company documents and financial records is crucial.

Apply for additional licenses or VAT registration

Depending on your business activities, you may need VAT registration or specific industry licences. If your annual taxable turnover exceeds £90,000 (the current VAT threshold), you must register for VAT.

Certain sectors, such as food service, childcare or transport, also require specific licensing. Make sure your trading address details are correctly listed on official forms, as this ensures proper official communication and compliance with your articles of association.

Managing Your Registered Company

After you’ve formed your new company, proper management and compliance are key to keeping your limited company in good standing with the Companies House and HMRC. 

From submitting your annual filings to maintaining accurate records, these responsibilities ensure your company’s finances remain transparent and your personal details protected.

Filing annual requirements with the Companies House

Every company registered in the UK must file an annual confirmation statement with the Companies House. This document confirms that your company information (such as directors, shareholders, business address and people with significant control) is accurate and up to date.

Filing this form ensures transparency and helps avoid penalties. The house filing fee for submitting your confirmation statement is minimal, and it can be completed online through the Companies House portal.

If any company details change during the year, such as a new company officer, company secretary or updated registered office, you must report these changes promptly.

Keeping your home address private (where applicable) by using a separate business address for correspondence helps maintain privacy while still complying with official communication requirements.

Maintaining financial records

Accurate record-keeping is essential for managing your company’s finances and ensuring compliance with corporation tax and audit requirements. UK law requires all companies to keep detailed accounting records of income, expenses, bank accounts, and assets.

Many small businesses use accounting software to automate reports and simplify submissions. These tools help companies maintain efficiency and transparency while preparing for tax deadlines.

Protecting your personal assets

As a limited company, one of your biggest advantages is limited liability where your personal assets are generally protected if your business faces financial difficulties. However, maintaining this protection depends on strict compliance with regulations, accurate financial management and keeping personal and company funds separate.

Careful planning, budgeting, and monitoring your company’s finances can help avoid unnecessary risks and keep your company stable and compliant over time.

Common Challenges and Solutions

Starting a new company in the UK is straightforward, but there are a few challenges that many founders encounter during and after registration. 

From choosing the right business address to ensuring compliance as a non-UK resident, understanding these common hurdles and how to overcome them can save you time, money and frustration.

Issues with choosing a business address

When forming a company registered in the UK, you must provide an official business address. This address appears on the public record at Companies House, which can raise privacy concerns, especially for entrepreneurs working from home.

If you’d like to keep your home address private, consider using a virtual office or registered address service.

A virtual office offers professional mail handling, privacy protection, and a credible business image, making it ideal for small businesses or digital companies operating remotely. These services also help ensure that your official communication reaches you promptly, while maintaining compliance and efficiency.

Registering as a non-UK resident

It’s entirely possible for non-UK residents to form companies and operate legally in the UK. You don’t need to live in the UK to act as a director or shareholder, as long as you provide a valid service address and meet identity verification requirements.

However, the process can be more complex when dealing with international addresses, bank verification or tax matters.

Using a professional business formation service can simplify the process, ensuring all company documents are correctly filed and that your company complies with UK laws from day one. Many services also assist with setting up bank accounts, managing financial records, and handling official communication on your behalf.

Avoiding mistakes in the registration process

Accuracy is essential when registering your company. Errors in your personal details, articles of association or information about people with significant control can delay approval or cause compliance issues later. Always double-check the spelling of names, dates of birth, and trading address before submission.

If a mistake does occur, you can correct errors by filing an amendment through the Companies House. Keeping your company documents up to date and reviewing your confirmation statement regularly ensures your business remains compliant and your own company runs smoothly.

Conclusion

Registering a company in the UK is a straightforward process that gives your business legal credibility, limited liability and long-term growth potential. 

From choosing your structure and business address to filing your confirmation statement and managing company finances, each step strengthens your company’s foundation.

Frequently Asked Questions 

What is the minimum capital for a private company in the UK?

There is no minimum capital requirement for registering a private limited company in the UK. You can start your new company with as little as £1 in share capital. This flexibility makes it easy for entrepreneurs and SMEs to set up and begin trading without large upfront investments.

What does LTD mean?

“LTD” stands for private limited company. It indicates that the business is a separate legal entity from its owners, offering limited liability protection. This means that the personal assets of shareholders are generally protected if the company faces debts or financial challenges.

Is it better to be an Ltd or a sole trader?

Choosing between an Ltd company and being a sole trader depends on your goals. An Ltd offers limited liability, greater credibility and potential tax advantages. A sole trader structure, on the other hand, is simpler to set up and manage but carries personal liability for any business debts. Many entrepreneurs start as sole traders and later form companies once their business grows.

Can I start my company alone?

Yes. You can register a company and act as the sole director and shareholder. The UK allows individuals to form companies on their own, giving them full control over their own company’s finances, operations and growth.

Is it free to register a company in the UK?

No. There is a small house filing fee payable to Companies House. The standard online registration fee is £12, while postal applications cost £40. However, some third-party formation services include additional support, such as a business address or bank account setup.