Forming a Limited Company: Step-by-Step Guide

What you need before you start

• Company name (check availability on the Companies House name checker)
• Registered office address (must be a UK address — can be your accountant's address or a virtual office)
• Director details (name, date of birth, nationality, occupation, service address)
• Shareholder details and share structure
• SIC code(s) for your business activity

How to incorporate

The easiest route is through Companies House's WebFiling service (£50 online, usually processed within 24 hours). Accountants and company formation agents can also register for you — often included in their onboarding service. Third-party formation agents can be faster and handle some setup tasks.

First 30 days checklist

1. Open a business bank account — do not mix personal and company money.
2. Register for corporation tax — notify HMRC within 3 months of starting to trade via your HMRC online account.
3. Register as an employer — before you pay yourself any salary.
4. Register for VAT — if you expect to exceed the £90,000 threshold, or consider voluntary registration.
5. Set up an accounting system — Xero, FreeAgent, or QuickBooks for MTD-compliant record keeping.
6. Board minute your salary — before making any payments, record the salary decision in writing.
7. Arrange professional indemnity insurance — most professional services clients require this before you can start work.

Costs of running a limited company

Budget for: accountancy fees (£800–£2,500/year depending on complexity), Companies House confirmation statement (£34/year), payroll software subscription (free–£30/month), accounting software (£15–£35/month), business bank account (£5–£15/month), and professional insurance (£150–£500+/year depending on sector).