How to form a UK limited company — a plain-English guide
Whether you are still deciding whether to incorporate or ready to register today, this guide walks you through every step — what Companies House needs, what to watch out for, and how a Ringwood registered office address fits in from day one.
Should you incorporate at all?
Forming a limited company is not the right move for everyone, and it is not something you have to do right now. Many freelancers, consultants and small-business owners trade perfectly well as sole traders for years before incorporating — or never do. The question is what structure suits your situation, your ambitions and your appetite for administration.
The comparison below sets out the honest trade-offs between a limited company and being a sole trader. Read it on your own terms. There is no single right answer, and this guide will not push you either way.
Limited company vs sole trader
Five areas where the two structures differ in ways that actually matter to a first-time founder. Neither is universally better — the right answer depends on your circumstances.
Limited Company (Ltd)
Your personal finances are legally separate from the company's. If the business runs into debt or is sued, your liability is generally limited to what you have invested in the company. Your home and personal savings are not on the line in the same way.
The company pays Corporation Tax on its profits (currently 19–25% depending on profit level). You can draw a combination of salary and dividends, which can be more tax-efficient at higher income levels — but the picture depends on your specific circumstances and professional advice is worth taking.
Some larger clients and government contracts require suppliers to be limited companies. A company registration number on your invoices signals a degree of permanence that a sole trader cannot convey in the same way.
More to do. You must file annual accounts, a confirmation statement and Corporation Tax returns with Companies House and HMRC. Directors have legal duties. Most small-company owners use an accountant, which is an ongoing cost to factor in.
Your registered office address, director details and PSC information are on the public Companies House register. Using a professional registered office address means your home address does not have to appear there.
Sole Trader
You and the business are legally one and the same. If the business owes money or faces a claim, your personal assets — including your home — can be at risk. Professional indemnity and other insurance can mitigate this, but it does not replicate limited liability.
You pay Income Tax and National Insurance on your profits through Self Assessment. The tax you owe is directly tied to what you earn, with no scope to mix salary and dividends. Simpler to understand, and often easier to manage at lower income levels.
Many clients do not care either way. If your customers are individuals or small businesses, trading as a sole trader is no barrier. Some larger organisations have internal policies that exclude sole traders, but this affects a minority of freelancers and consultants.
Straightforward. Register with HMRC, file a Self Assessment return each year, keep records of income and expenses. No Companies House filings, no director duties, no annual accounts in the statutory sense. Much simpler to run yourself without an accountant.
Nothing is filed publicly about you as a sole trader (unless you register for VAT, which puts you on the VAT register). Your home address is not published on any public register as a result of trading.
Everything Companies House requires
Before you can submit your application (Form IN01), you need to have each of these items ready. Gather them in advance and the process is straightforward.
Company Name
Your chosen name must be unique on the Companies House register and must end in "Limited" or "Ltd" (or their Welsh equivalents for companies incorporated in Wales). Certain words are restricted or require approval. Companies House provides a free name-search tool so you can check availability before you apply.
Registered Office Address
Every UK limited company must have a registered office — a physical address in the same UK jurisdiction as incorporation (England and Wales, Scotland, or Northern Ireland). A PO box alone is not acceptable. This address is published publicly on the Companies House register and is where official government correspondence is sent. Many founders use a professional registered office service to keep their home address off the public record.
Director Details
You need the full name, date of birth, nationality, occupation, and a service address for each director. At least one director must be a natural person (not a company). Director information is partially public — name and month and year of birth appear on the register, though the full date of birth is withheld.
Shareholders
You must name the initial shareholders (also called members) and record how many shares each one holds. For a single founder starting out, this is often simply one person holding one share. You will also need to confirm that each shareholder has agreed to take the shares allocated to them — this is called the statement of capital and initial shareholdings.
Share Capital
You must decide on the total value and structure of your company's shares. Most small companies start with a single class of ordinary shares at a nominal value of £1 each. There is no legal minimum beyond that. It is worth thinking the structure through carefully before you file — restructuring shares after incorporation is possible but adds paperwork and cost.
SIC Code
A Standard Industrial Classification (SIC) code describes the nature of your business. Companies House uses it to categorise companies on the register. You choose from a published list of codes — pick the one or ones that best describe what your company actually does. You are not locked in and can update your SIC codes on future confirmation statements if your business changes direction.
Persons with Significant Control (PSC)
A Person with Significant Control is anyone who owns more than 25% of the company's shares or voting rights, or who otherwise exercises significant influence or control. Every company must identify its PSCs and include them on the application. For most small companies with a single founder, that founder is the sole PSC. PSC information is published on the public register.
Memorandum & Articles of Association
The Memorandum of Association is a short document signed by each initial shareholder confirming they want to form a company. The Articles of Association set out the rules by which the company is run — how decisions are made, how shares can be transferred, and so on. Companies House provides a standard set of model articles which most new small companies adopt without modification.
From name check to certificate of incorporation
Eight steps, in order. Follow them and you will have a registered UK limited company — usually within 24 hours of submitting your application online.
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1
Check your company name
Use the Companies House name availability checker to confirm your chosen name is not already taken and does not contain restricted words that require special approval. Check that the name is not too similar to an existing registered company — Companies House can reject names it considers confusingly similar, even if they do not match exactly. It is also worth checking whether the corresponding domain name and social media handles are available at the same time.
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2
Arrange your registered office address
Decide where your registered office will be before you file. If you do not want to use your home address — and most people who understand what "publicly visible on the Companies House register" actually means choose not to — now is the time to set up a professional registered office address. Ringwood Virtual Offices provides a real Ringwood town-centre address you can use as your registered office from day one, so your home address never needs to appear on the public record.
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3
Gather director and shareholder information
Collect the full name, date of birth, nationality, occupation and service address for each director. Confirm the names and share allocations for each shareholder. Decide how many shares to issue and at what nominal value. For a single founder starting a straightforward consultancy or service business, this is usually a five-minute job. For multi-founder startups, take the time to document the agreed split before you file.
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4
Complete director identity verification
Director identity verification became a legal requirement in 2025 under the Economic Crime and Corporate Transparency Act. All new directors must verify their identity directly with Companies House before — or shortly after — incorporation. The process is completed online through the Companies House identity verification service and typically takes only a few minutes using a valid UK passport or driving licence. Do not leave this step until after you have filed — starting it early avoids delays.
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5
Submit your application (Form IN01)
File your application through the Companies House online service. The standard online filing fee is £50. If you need your company registered on the same day, the same-day service costs £78 and must be submitted before the published cut-off time. Most online applications are processed within 24 hours. You will need the information gathered in the previous steps and a payment method. Paper applications are possible but significantly slower — avoid them unless you have a specific reason.
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6
Receive your certificate of incorporation
Once Companies House approves your application, you will receive a certificate of incorporation by email (if you filed online). This confirms your company's name, its registered number, and the date of incorporation. Keep it safe — you will need your company registration number for bank accounts, contracts, invoices and HMRC registration. This is the moment your company officially exists as a legal entity.
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7
Register for Corporation Tax with HMRC
You must notify HMRC that your company has started trading. You have three months from the date you start doing business to register for Corporation Tax — do not wait for your first tax bill to prompt you, because the deadline runs from when trading begins, not from when you receive any correspondence. Register through the HMRC online service using your company registration number. If your turnover is likely to exceed the VAT threshold (£90,000 in 2024–25), consider whether you also need to register for VAT at the same time.
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8
Open a business bank account and set up your records
A dedicated business bank account is not a legal requirement for a limited company, but running company money through your personal account causes serious problems at accounting and tax time. Open a business account as soon as your certificate of incorporation arrives — most banks and challengers will ask for your company registration number and certificate. At the same time, set up your record-keeping: a simple spreadsheet or entry-level accounting software is enough at the start. The key habit is keeping company and personal finances separate from day one.
Five things first-time founders often get wrong
These are not obscure edge cases. They are the mistakes that come up time and again — and most of them are far easier to avoid at formation than to fix afterwards.
Using a home address as the registered office
It is legal, but your registered office address is published on the public Companies House register, searchable by anyone online. Once it is there, it is hard to remove — and the address appears not just on the register but on any documents the company files. Using a professional registered office address from day one means your home address stays private. If you have already incorporated with your home address, you can change your registered office at any time.
Getting the share structure wrong from the start
Many founders incorporate with a single share class and a simple allocation without thinking through what happens if they later bring in a co-founder, an investor or an employee on a share scheme. Restructuring shares after incorporation is entirely possible, but it involves additional legal and accounting work. If there is any chance your ownership structure will change, it is worth getting advice before you file rather than after.
Forgetting to register for Corporation Tax
Incorporating a company and registering for Corporation Tax are two separate steps with two different government departments. Companies House handles incorporation; HMRC handles tax. You must notify HMRC that your company has started trading within three months of commencing business — failure to do so can result in penalties. Many new directors assume that because their accountant or formation agent handles the Companies House filing, HMRC has been notified too. Check.
Missing the confirmation statement deadline
Every UK limited company must file a confirmation statement at Companies House at least once every 12 months. It is not the same as the annual accounts — it is a separate filing that confirms or updates the company's basic details on the register. The deadline runs from your incorporation date, not the end of the tax year. Missing it does not immediately close your company, but it does put the company in default and Companies House may begin the process of striking it off.
Mixing personal and business finances
A limited company is a separate legal entity from its directors and shareholders. Running company income through your personal bank account — or paying personal expenses from the company account — creates a bookkeeping and tax headache that your accountant will charge you to unravel. It can also create legal complications around directors' loan accounts and dividend payments. Open a dedicated business account as soon as you have your certificate of incorporation and keep the two completely separate.
Keep your home address off Companies House from day one
When you incorporate, Companies House publishes your registered office address on the public register. That record is permanent and searchable. For many founders, using their home address as their registered office is the one decision they most wish they had made differently.
Ringwood Virtual Offices provides a real town-centre address in Ringwood, Hampshire that you can use as your company's registered office from the moment you file. Your home address stays private. Your official mail is received and handled at our Ringwood address. And your company has a professional Hampshire presence — without a lease, without rates, without a space you do not need.
The registered office service starts at £25 a month. You can read more about what is included or see the full range of services.
Frequently asked questions about company formation
Straightforward answers to the questions first-time founders most commonly ask.
How long does it take to form a limited company in the UK?
Online applications submitted to Companies House are usually processed within 24 hours, and often much faster. If you need same-day registration, Companies House offers a same-day service for a higher filing fee. Postal applications take considerably longer — typically 8 to 10 working days — so almost everyone files online.
How much does it cost to register a limited company?
The Companies House online filing fee for a standard application (Form IN01) is £50, and your company is usually registered within 24 hours. If you need same-day registration, the fee is £78. There is no ongoing annual filing fee for the incorporation itself, though you will need to submit a confirmation statement each year (currently £34 if filed online).
Do I need a UK address to form a limited company?
Yes. Every UK limited company must have a registered office address that is a physical location in the same UK jurisdiction as incorporation (England and Wales, Scotland, or Northern Ireland). A PO box alone is not acceptable. The address is publicly visible on the Companies House register, which is why many founders use a virtual office or registered office service to keep their home address private.
Can I use my home address as my registered office?
Legally, yes — but it comes with real downsides. Your registered office address is published on the public Companies House register, visible to anyone searching online. That means your home address becomes permanently searchable and associated with your company. Many founders start with their home address and later regret it. Using a professional registered office address from the outset keeps your home private and gives your business a more credible presence.
What is a Person with Significant Control (PSC)?
A Person with Significant Control is anyone who owns more than 25% of a company's shares or voting rights, or who otherwise has significant influence or control over the company. Every company must maintain a register of PSCs and report them to Companies House. For most small companies with a single founder, that founder is the sole PSC.
What is director ID verification and do I need it?
Director identity verification became a requirement in 2025 under the Economic Crime and Corporate Transparency Act. All new and existing company directors must verify their identity directly with Companies House before — or shortly after — incorporation. The process is done online through the Companies House identity verification service and typically takes only a few minutes with a valid passport or driving licence.
What is share capital and how much do I need?
Share capital is the total value of the shares issued by your company. Most small UK companies are set up with a single ordinary share at a nominal value of £1, giving a total share capital of £1. There is no legal minimum beyond that. Getting the share structure right from the start matters if you plan to bring in co-founders, investors or employees — it is much easier to set up cleanly at formation than to restructure later.
When do I need to register for VAT after forming my company?
You must register for VAT when your taxable turnover exceeds the current VAT threshold (£90,000 as of 2024–25) in any rolling 12-month period. You can also register voluntarily below the threshold if it suits your business. VAT registration is separate from company formation and is handled through HMRC, not Companies House.
Ready to incorporate? Start with the right address.
Pair your new limited company with a professional Ringwood registered office address. Your home address stays private. Your official post is handled at our Ringwood town-centre location. And you have a Hampshire business presence from day one — without the office.
Registered office address from £25/month · No setup fee · Companies House & HMRC compliant