6 Easy Steps to Set Up a Limited Company Online [2026 Guide]

Choose Your Company Formation Platform: Companies House vs Company Formation Agent

You have two options for registering a UK limited company. File directly with Companies House with basic support, or use a company formation agent that handles documentation, provides ongoing compliance assistance, and connects your new company with banking partnerships.

Choosing between Your Company Formations vs Companies House depends on your experience level, available time, and need for ongoing support. Direct filing suits confident business owners who understand company formation requirements, while formation agents benefit first-time entrepreneurs and non-UK residents who value expert guidance throughout the incorporation process and beyond.

File directly through Companies House GOV.UK with minimal support

Going directly through Companies House appeals to entrepreneurs who value complete control over their company formation process. You pay for incorporation and nothing more. No middleman touches your application, no external party accesses your company details, and no ongoing relationship develops beyond the basic filing.

The process begins at the official Companies House Web Incorporation Service on GOV.UK. You’ll create or sign in to GOV.UK One Login using your email address, then verify your identity as required under the Economic Crime and Corporate Transparency Act. This verification step represents the most significant change to DIY incorporation in decades.

After identity verification, you provide essential company details, including your company name, UK registered office address, and complete information for all directors and Persons with Significant Control. Companies House processes accurate applications within 24 hours, but errors trigger rejection and restart the entire process.

Once your company registration succeeds, Companies House posts a company authentication code to your registered office address. You need this code for all future online filings, creating a dependency on postal delivery that can delay ongoing compliance activities.

Use company formation agents for expert assistance with your filing

Company formation agents handle documentation, prevent filing errors, and provide ongoing compliance support. Your Company Formations reviews documents before submission, checks company names against Companies House rules, and guides share structure decisions that align with your business objectives.

Support extends beyond incorporation. Automated reminders track annual filing deadlines, banking partnerships deliver free business accounts with cashback that recovers formation costs, and established networks connect you with accounts, lawyers, and specialist advisors.

The best company formation agent in the UK for startups suits first-time entrepreneurs, non-UK residents needing registered office services, and growing businesses that prioritise expert guidance over DIY cost savings. You gain compliance assistance, banking access, and professional networks that support long-term business growth.

Identify a Company Formation Package to Register Your Company with Companies House

If you choose a formation agent, packages are tailored, and the cost varies based on the additional services and features they include. At Your Company Formations, our packages range from basic Digital Plan and Digital & Print for minimal services, Privacy for address protection, Fully Inclusive for compliance support, to Entrepreneurs Choice for complete business infrastructure. All prices exclude the mandatory Companies House fee.

When comparing packages, consider these critical factors:

a. Compliance, Accuracy, and Structure

All packages provide standard model articles suitable for straightforward company structures. Digital Plan and Digital & Print offer basic processing without accuracy checks, meaning you bear responsibility for application correctness. Fully Inclusive and Entrepreneurs’ Choice includes pre-submission review and business classification code guidance, helping prevent Companies House rejections. Choose higher tiers if you are unfamiliar with incorporation requirements or if your activities span multiple sectors.

Entrepreneurs’ Choice provides dedicated identity verification support for the November 2025 requirements, while lower tiers offer only standard processing.

b. Privacy and Address Services

Every UK company must have a registered office address that is publicly searchable. Digital Plan and Digital & Print require you to provide your own address, which typically exposes your home location in public records.

Privacy packages provide professional London EC1 registered office and director service addresses for 12 months, keeping your home location confidential. The law requires directors’ residential addresses to remain confidential, but without a service address, your home still appears in some contexts.

Fully Inclusive and Entrepreneur’s Choice offer premium London EC1 addresses that protect privacy and enhance business credibility with banks and corporate clients. Essential if you work from home or have security concerns.

c. Ongoing Support and Future Compliance

Digital Plan, Digital & Print, and Privacy provide no ongoing compliance reminders after incorporation. You must independently track Confirmation Statement deadlines (at least annually) and Annual Accounts submissions (within 9-21 months, depending on accounting date). Missing these results in hefty automatic penalties, with prosecution possible for persistent failures.

Fully Inclusive includes 12 months of filing service, providing deadline reminders, secretarial support, and VAT registration assistance. Entrepreneurs’ Choice extends this with employee tax registration, accounting credit, and online company management tools.

Recommended minimum for first-time directors is Fully Inclusive. The filing service alone justifies the cost difference versus managing compliance independently and risking penalties.

Entrepreneurs’ Choice adds 12 months of call-answering service for a professional telephone presence without physical office costs.

d. Financial and International Services

Privacy and higher tiers include bank account opening support with partner banks. Higher packages improve approval chances through professional addresses and established banking relationships.

Non-UK residents must use Privacy or higher because every UK company requires a UK-registered office address. Digital packages are unsuitable unless you have an existing UK property. Fully Inclusive and Entrepreneur’s Choice offer enhanced international support, including assistance with document legalisation and overseas director guidance.

Complete UK Identity Verification Requirements for Company Directors and a Company Secretary

Companies House implemented mandatory identity verification for all company directors, company secretaries, and persons with significant control beginning in autumn 2025. This represents the most important regulatory change in UK limited company formation for decades, affecting everyone who wants to register a company.

Prepare for mandatory company director identity verification starting autumn 2025

From 18 November, identity checks will become compulsory for all business owners. Every director must verify their identity within 12 months of incorporation. Verification can be completed either directly through the Companies House system or via a registered corporate service provider.

Existing companies benefit from a 12-month transition period to adapt, whereas new incorporations must meet the requirement immediately. Failure to comply can result in director disqualification and potentially lead to company dissolution.

Gather essential company director documentation meeting Companies House standards.

To meet Companies House requirements, directors must prepare the following information and documents:

1. Identity Verification

Your full legal name must match exactly as it appears on your passport or driving licence. Even minor discrepancies can cause verification delays that may extend for weeks.

2. Residential and Service Addresses

Companies House requires every company director to provide both a private residential address and a public service address to ensure transparency and proper delivery of statutory mail.

Therefore, the following information is required for directors:

• Personal and professional details such as date of birth, nationality, occupation, and details of any previous directorships, where applicable.
• A valid UK residential address is required. PO boxes and virtual addresses are not accepted.
• Non-residents must provide proof of their home address outside the UK and also purchase a registered UK address, which is a legal requirement.

Every director must provide both:

• A personal residential address is kept private.
• A service address, which appears on the public record and is used for statutory mail.

Register People with Significant Control at the time of company incorporation.

At this point, you need to declare who really controls the company. Anyone with 25% or more ownership or voting rights counts as a Person with Significant Control (PSC). If a shareholder is another company, you’ll need to outline the ownership structure to identify the ultimate beneficial owners.

You also have to explain the type of control each PSC holds—whether it’s through shares, voting rights, or influence at the board level. Once your company is up and running, remember that the PSC register isn’t a one-time task. It must be kept up to date; failing to do so can result in penalties.

Secure UK registered office address to meet enhanced address requirements.

Your registered office must be a physical address in the UK where official mail can be delivered during business hours. If your company does not provide a compliant address, Companies House may assign a default address, which can lead to extra costs and unnecessary administrative complications.

The registered office serves as your company’s legal point of contact with regulators and government agencies. It is not the same as your principal place of business, and you are not required to operate from this address physically.

As a Business Owner, File Your Company Documents with Companies House

Companies House requires specific company documents that vary based on your limited company structure and planned business activities.

Choose a company name that is available for registration and meets requirements

Your company name becomes a permanent part of the memorandum of association, so it must be confirmed and accepted before you can complete incorporation.

So, check that your preferred name is available using the company name check tool.

Your chosen name must be unique and clearly distinguishable from other limited companies already on the register. If it contains restricted terms, you will need authorisation from the relevant authorities before it can be approved.

Once confirmed, the name is entered into your memorandum of association, making it a formal part of your company’s legal identity. At the same time, you must provide a registered email address that will serve as the primary channel for official communications and regulatory updates from Companies House.

Specify the ordinary share capital structure for companies limited by shares.

Most private limited companies benefit from 100-10,000 one-pound ordinary shares, as this provides flexibility for future investment without excessive initial complexity. The most common type of limited company is a company limited by shares, suitable for for-profit businesses.

Define share classes clearly, including voting rights and dividend entitlements that affect shareholder control. Include par values and initial shareholder allocations that reflect actual ownership agreements. Plan for future investment rounds by authorising sufficient shares to avoid costly share capital increases later.

Submit complete company director information meeting Companies House requirements.

Aside from the identity verification process, you will also need to provide full legal names exactly as they appear on your official application to Companies House. Include residential addresses, dates of birth, and occupations for regulatory compliance. List previous directorships within the last five years, if applicable, as this information affects eligibility assessments. Service addresses can differ from residential addresses if directors require privacy protection when forming a limited company.

Choose appropriate SIC codes describing your business activities.

You will now need to provide a five-digit SIC code that accurately describes your primary and secondary business activities for the new company. Multiple codes are allowed for diversified operations that span different industries. These codes affect statistical reporting and specific regulatory requirements, making accuracy crucial for compliance. Update codes whenever business activities change significantly to maintain regulatory alignment for your limited company.

Prepare a statement of capital and initial shareholdings with precision.

Detail your share capital, including the number of shares and aggregate nominal value for your private limited company. List all shareholders with their exact shareholding percentages and investment amounts. Include rights attached to each share class, particularly voting and dividend rights. Specify currency if using non-sterling denominations, though most UK limited companies use pound sterling for simplicity.

Submit your application to Companies House: Now that you have provided all the required company details, you can apply and pay the incorporation fee online through the portal.

Register Your Limited Company Online with HMRC for Corporation Tax Within 3 Months

HMRC registration begins automatically when Companies House notifies them of your company’s incorporation. However, active trading triggers additional requirements that many new company owners overlook until penalties arrive.

Allow Companies House to notify HMRC automatically of your company incorporation.

Once your company is set up, Companies House will notify HMRC within days that your new company needs a company UTR number. This establishes corporation tax obligations from your incorporation date, regardless of trading activity. A dormant company avoids active registration requirements until trading begins, but must declare dormant status explicitly to HMRC.

Complete corporation tax registration when business activities commence

Within 3 months of your first business activity, you will need a Government Gateway ID that’s linked to your company to register for corporation tax.

Submit form CT41G declaring your accounting period dates and expected business structure. Provide detailed business activity descriptions and expected annual turnover for HMRC assessment. Late registration triggers automatic penalties regardless of revenue levels or business circumstances.

Open a Free Business Bank Account With CashBack for Your New Company

Your certificate of incorporation proves your company exists as a legal entity, which banks require before opening business accounts. The company registration number (crn number) enables account opening with major UK banks because it allows them to verify your registration with Companies House for regulatory compliance.

Banks require company director identification documents to authorise access to accounts and to meet anti-money laundering regulations. Your UK registered office address validates business presence in the UK, satisfying banking requirements that prevent accounts being opened for overseas entities without legitimate UK operations.

Set Up Your Limited Company Compliance Systems: Ongoing Requirements for UK Companies

UK limited companies face ongoing statutory obligations requiring systematic attention. Companies House strikes off limited companies automatically for extended non-filing, requiring expensive restoration procedures to resume operations.

Create a 21-month deadline tracking for the first statutory accounts filing

New companies benefit from an extended deadline for filing their first statutory accounts. You have up to 21 months from the date of incorporation, which gives valuable breathing space to get your records in order.

After the first filing, subsequent accounts must be delivered within nine months of your accounting reference date. Companies House enforces these deadlines strictly, regardless of workload.

Late-filing penalties can be hefty, depending on the length of the delay. Repeated late submissions double the penalties, creating costs that often exceed the fee for professional account preparation.

Schedule annual confirmation statements and PSC register updates

Every limited company must file a confirmation statement once a year, usually on the anniversary of incorporation. A filing fee is payable to Companies House for each submission, regardless of whether the company has been actively trading.

In addition to the annual statement, you must update your company records whenever there are changes to directors, shareholders, or People with Significant Control (PSC). Statutory registers must also be kept at your UK registered office, where they are available for legal inspection.

Arrange UK professional indemnity insurance covering the director and business liability.

Directors can face personal liability for company debts in certain situations, and standard business insurance does not protect in these cases. Professional indemnity insurance provides cover against legal claims arising from business advice, professional services, or errors in delivery.

Annual premiums typically range between £150 and £500, depending on your industry, risk profile, and level of cover. In specific regulated sectors, including law, accountancy, and financial services, professional indemnity insurance is required for licensing and compliance purposes.

Establish UK accounting systems with monthly transaction recording.

Accurate accounting begins with maintaining detailed records of every business transaction to meet Corporation Tax and VAT compliance requirements. To protect your limited liability status, it is essential to keep personal and business finances completely separate.

Recording and reconciling transactions each month helps prevent errors and avoid year-end complications that often lead to higher accounting fees. Many companies choose professional bookkeeping services, which typically cost between £50 and £200 per month, to ensure accuracy and full compliance with HMRC standards.

Prepare for ongoing tax compliance obligations with professional support.

Running a limited company comes with ongoing tax responsibilities that extend well beyond incorporation. Corporation Tax returns must be filed within 12 months of your accounting period end and require complex calculations. If your company is VAT-registered, quarterly VAT returns are mandatory, with penalties for late submission. Employing staff adds further complexity, as PAYE submissions must be filed monthly to remain compliant with payroll regulations.

Professional accountants manage these obligations efficiently and at a lower cost than the potential penalties or the time investment required to handle them on their own. Many small business owners focus only on formation costs and underestimate the continuing compliance burden. However, these legal obligations apply regardless of profitability or cash flow, making professional support a practical safeguard against penalties that can easily exceed the cost of ongoing accounting services.