Starting a business doesn’t always mean forming a limited company. While incorporation can be one of the most tax-efficient ways to operate, it can feel intimidating at first. The good news? Once you understand what’s required, the process is far more straightforward than most people expect.

In this guide, we’ll walk you through how to register a limited company in the UK, explain your responsibilities, and answer common questions business owners have before incorporating.

What is a limited company?

A limited company is a business structure that exists as a separate legal entity from the individuals who own and manage it. This separation means the company is responsible for its own debts and obligations, helping to limit your personal financial risk.

You can learn more about how companies are legally defined on the Companies House guidance on company types.

Why choose a limited company structure?

Like any business decision, incorporation has advantages and disadvantages depending on your situation.

Many business owners choose to register a limited company because it:

• Reduces personal liability, protecting personal assets
• Offers more flexibility in how income is taken from the business
• Can provide tax-efficient remuneration options

For a balanced overview, see GOV.UK guidance on running a limited company.

What type of limited company should you set up?

If you decide to incorporate, there are two main company structures to consider:

• Private limited company (Ltd)
• Public limited company (PLC)

Most startups and small businesses choose a private limited company, as there is no minimum share capital requirement. PLCs, on the other hand, must have at least £50,000 in share capital, a minimum of two directors, two shareholders, and a qualified company secretary.

More detail is available in Companies House guidance on private and public limited companies.

Choosing a company name

Picking a company name is an exciting step, but it can also be challenging. Many names are already taken, and the same often applies to domain names.

The good news is that you can trade under a different business name, as long as your registered company name and details are clearly displayed.

Company name rules

When registering, your company name must:

• End with “Limited” or “Ltd” (or “Cyfyngedig” / “Cyf” in Welsh)
• Be unique and not deliberately similar to an existing name
• Avoid offensive or sensitive words
• Not imply government approval or official status without permission

These rules are explained in full in Companies House rules for company names.

Where do you register a limited company?

All UK limited companies must be registered with Companies House. You can:

• Apply online
• Submit a paper IN01 form by post
• Use a company formation agent or accountant

Official instructions are available via Register a company with Companies House.

Do you need to inform HMRC?

In most cases, Companies House will notify HMRC automatically once your company is incorporated. However, you must still ensure you register for Corporation Tax within 3 months of starting to trade.

Registering a company in Scotland

The registration process is the same across the UK, but Scottish companies must:

• Use a Scottish registered office address
• Have a Company Registration Number (CRN) starting with SC

Information required to register a limited company

When incorporating, you’ll need to provide several details to Companies House, including:

Personal information

This includes your full name, address, town of birth, and National Insurance number.

Identity verification

Directors and shareholders must verify their identity using documents such as a passport. This can be done directly or through an authorised agent.

Nature of business (SIC code)

You must select a Standard Industrial Classification (SIC) code that reflects your business activities.
Browse the official list via UK SIC codes on GOV.UK.

Statement of lawful purpose

Initial shareholders must confirm the company is being formed for legitimate business reasons.

Registered office address

Every company must have a full UK address where official correspondence can be sent.

Directors and shareholders

• Directors manage the company and ensure legal compliance
• Shareholders own the company through shares

A private limited company requires at least one director, while a PLC requires at least two. Directors must be over 16 and not disqualified. Eligibility rules are explained in Who can be a company director – GOV.UK.

Key documents you’ll need

Before incorporation, you must prepare:

• Memorandum of Association
• Articles of Association (often using standard model articles)

Frequently asked questions

Do I need to live in the UK to register a company?

No. Directors can live anywhere in the world, but the company must have a UK registered office address.

Can I be the only director?

Yes, a private limited company can be formed with a single director and shareholder.

When should I register a limited company?

If you intend to trade as a limited company, you must incorporate within 3 months of starting business activities.

Costs and registration timeframes

From 1 February 2026:

• Online registration costs £100
• Postal registration costs £124

Processing usually takes 24 hours for online applications.

What happens after incorporation?

Once registered:

• Companies House issues a Certificate of Incorporation
• HMRC sends your Unique Taxpayer Reference (UTR)
• You must file annual accounts and confirmation statements
• Corporation Tax must be calculated and paid
• PAYE registration is required if you take a salary

Registering a limited company is a major step, but with the right preparation and understanding of your responsibilities, it doesn’t need to be overwhelming. Whether you do it yourself or use a professional agent, staying compliant with Companies House and HMRC from day one sets your business up for long-term success.