Setting up a UK limited company in 2026 takes around 15–30 minutes online and costs £50 direct with Companies House (£12 for the software-only filing). Beyond the filing itself, there are seven decisions that determine whether the company you set up is the company you actually want to run.
The 7-step checklist
- Choose a company name that's available, lawful, and brand-fit.
- Decide on directors, shareholders, and Persons with Significant Control (PSC).
- Pick a registered office address that you're happy to be public.
- Draft (or accept the model) Articles of Association.
- Issue share capital — usually 1, 100, or 1,000 ordinary shares.
- File IN01 with Companies House (or use a formation agent).
- Set up HMRC, banking, and bookkeeping immediately after incorporation.
Each step has a real decision behind it. The walkthrough below covers each in turn.
1. Choose the company name
The name has to be unique on the Companies House register, must not be too similar to an existing company, and cannot contain sensitive words (bank, royal, national, chartered) without prior approval. It must end with "Limited" or "Ltd" unless you are registering a community interest company or other special form.
A common mistake is registering the legal name and the trading name as the same string, then later wanting to rebrand. You can operate under a trading name different from your legal name — plan for that flexibility from day one. Check the domain and the Trade Marks register at the same time you check Companies House; all three need to clear before you commit.
2. Directors, shareholders, and PSCs
Every UK limited company needs at least one director who is a natural person aged 16 or over. Shareholders can be the same people, different people, or other companies. Anyone holding more than 25% of the shares or voting rights — or who otherwise exerts significant control — must be registered as a Person with Significant Control on the public register.
For a solo founder, this is straightforward: one director, one shareholder, one PSC, all you. For a co-founder split, agree the equity numbers in writing before you incorporate. Renegotiating equity after the fact is far more painful than agreeing it upfront.
3. Registered office address
Every company needs a registered office in the UK where official correspondence can be sent. It becomes part of the public record. Three common options:
- Your home address. Free, but it goes on the public register. Increasingly removable from the register from March 2024 onwards if you can demonstrate a privacy risk, but the historical record stays.
- An accountant's or formation agent's address. Standard practice; usually included in a setup package.
- A real office or virtual office. If you have one, use it. If you don't, the formation agent route is cleaner than your home address.
4. Articles of Association
The Articles are the company's internal rulebook — how directors are appointed, how shares are issued, how decisions are made. Most new companies adopt the Companies House model articles unchanged, which is fine for a single-founder, single-share-class setup.
If you are taking investment, planning multiple share classes (ordinary, preference, growth shares), or splitting equity with co-founders on a vesting schedule, the model articles will not be enough. Bespoke articles drafted by a solicitor or compliance-aware accountant are worth the cost.
5. Share capital
Share capital is the number of shares the company issues at formation, multiplied by their nominal value. Most early-stage companies issue either 1, 100, or 1,000 ordinary shares at £0.01 or £1.00 each. The number is mostly cosmetic for a private company; what matters is the percentage split, not the raw count.
A practical default for a single-founder company: 100 ordinary shares at £0.01 each (£1.00 total share capital). It gives you room to bring in co-founders or investors later by issuing more shares without renumbering.
6. Filing IN01
IN01 is the Companies House incorporation form. You can file:
- Direct online with Companies House — £50, completed in minutes.
- Through Companies House software-only filing — £12 if your accountant or agent uses the API.
- Through a third-party formation agent — typically £15–£100 depending on the package, often bundled with banking and a registered office.
The right route is mostly about who handles the post-formation admin (HMRC registration, accounting setup, bookkeeping). If you're doing it yourself, file direct with Companies House. If you want the post-formation work handled too, an accountant-led formation is usually faster end-to-end.
7. Post-formation: the hour after Companies House emails you
The certificate arrives, often within a few hours. The same day, five things should happen:
- Register for Corporation Tax with HMRC within 3 months of starting trading. Done online via the company's government gateway account.
- Open a business bank account. UK banks vary enormously on speed; challenger banks are usually open within the day.
- Set up bookkeeping — software (Xero, QuickBooks, FreeAgent) connected to the new bank account from day one. The cost of cleaning up retroactively is far higher than the cost of doing it right from the start.
- Register for VAT if you expect turnover above £90,000 in any 12-month period. (Voluntary registration below that threshold can be sensible if you sell mostly to other VAT-registered businesses.)
- Register as an employer with HMRC if you'll run payroll — including paying yourself a director's salary.
Common mistakes to avoid
- Using a personal bank account. Mixes finances, breaks the limited-liability separation, and creates accounting nightmares.
- Skipping the shareholder agreement. If there's more than one of you, write it before you trade. Articles alone don't cover everything two co-founders should agree on.
- Treating the company as an extension of yourself. A limited company is a separate legal person. Money flows in and out by salary, dividend, or expense — never as informal transfers.
- Late filings. Confirmation statement (annual) and accounts (annual, deadline depends on year-end) both carry penalties for lateness. Calendar them on the day you incorporate.
Where Rajoka fits
UK company formation and the compliance foundations that come with it sit inside the compliance pillar of the Rajoka portfolio — specifically at the Start stage of a business's life. Verity Partners handles formation plus the early-stage compliance stack: registered office, statutory admin, founder onboarding. For the accounting and tax setup that follows, the Rajoka portfolio also includes RR Accountants. They are independent businesses; they each have their own terms, pricing, and onboarding.
The full Rajoka portfolio of UK specialist brands is on the portfolio page.
Frequently asked questions
How much does it cost to set up a UK limited company?
Direct registration with Companies House costs £50 online. Software-only filing through an authorised agent is £12. Third-party formation agents typically charge £15–£100, often bundled with banking, registered office, and post-formation admin. Beyond the filing itself, expect to pay for accounting setup, bookkeeping software, and a business bank account.
How long does it take to register a UK limited company?
Online incorporation through Companies House typically takes 24 hours and is often completed within a few working hours. Postal applications take 8–10 working days. Once the certificate is issued, the post-formation steps (HMRC, banking, bookkeeping) usually take another 1–5 working days.
Do I need an accountant to set up a UK limited company?
No, but it's strongly recommended for anything beyond a single-founder, single-share-class setup. An accountant handles the post-formation work — HMRC registration, payroll setup, VAT decision, bookkeeping software — that determines whether the company runs cleanly from day one or accumulates problems for later.
Can I use my home address as a UK company's registered office?
Yes, but it becomes part of the public Companies House register. From March 2024, you can apply to suppress your residential address from the public record if you can demonstrate a privacy risk, but the historical record remains. Most founders use an accountant's or formation agent's address instead.
What is a Person with Significant Control (PSC)?
A Person with Significant Control is anyone who holds more than 25% of the shares or voting rights in a UK company, or who otherwise exerts significant control over it. Every UK limited company must keep a PSC register and report PSC information to Companies House — it appears on the public register.