Opening a limited company in the UK is genuinely quick — Companies House usually registers an online application within 24 hours, and the standard fee is £50. The registration itself is the easy part. What separates a clean start from an expensive mess is the set of decisions you make before you file, and the tax registrations you complete just after. This guide walks through the whole journey in order.
What you need before you register
- A company name that isn't already taken and doesn't clash with a trade mark — check the Companies House register first.
- A registered office address in the UK. This goes on the public record, so many founders use their accountant's address instead of home.
- At least one director aged 16 or over. Directors' names appear publicly.
- At least one shareholder — this can be the same person as the director. Decide the share structure now: changing it later is possible but messier.
- A SIC code — the official code describing what the company does.
- Details of People with Significant Control (PSC): anyone owning over 25% of shares or voting rights.
Step by step: the registration itself
You register online with Companies House (or let your accountant do it as part of onboarding). You'll adopt the memorandum and articles of association — the standard model articles are fine for most small companies. Pay the £50 fee, and in most cases the company exists within one working day. You'll receive a certificate of incorporation with your company number.
A few days later HMRC posts your company's Unique Taxpayer Reference (UTR) to the registered office. Keep it safe — you'll need it for every tax filing.
We open your company and set up every tax registration — done in a week
Formation, Corporation Tax, VAT, PAYE, payroll — one fixed fee, nothing forgotten.
The registrations people forget
- Corporation Tax — you must tell HMRC the company is active within 3 months of starting to trade.
- VAT — mandatory once taxable turnover passes £90,000 in any rolling 12 months; voluntary registration can make sense earlier if your customers are VAT-registered businesses.
- PAYE — needed before the company pays anyone a salary, including you as director.
- A separate business bank account — a limited company is a separate legal person, and its money is not your money.
What a limited company pays in tax
Corporation Tax is 19% on profits up to £50,000 and 25% from £250,000, with marginal relief tapering between the two. You then choose how to pay yourself — typically a small salary plus dividends. Dividends above the £500 allowance are taxed at 8.75%, 33.75% or 39.35% depending on your income band. Getting this split right is where an accountant usually saves you more than their fee.
The calendar that catches new directors out
- Confirmation statement — at least once a year to Companies House (£34 online).
- Annual accounts — due at Companies House 9 months after your financial year end.
- Company Tax Return (CT600) — due 12 months after the year end.
- Corporation Tax payment — due 9 months and 1 day after the year end (yes, before the return itself).
- Late filings mean automatic penalties that grow the longer you wait.
Sole trader or limited company?
If you're not sure the company structure is right for you at all, read our comparison of sole trader vs limited company — for many people starting out, self-employment is the simpler first step, and incorporating later is straightforward.