Registering a limited company in the UK is genuinely one of the fastest, cheapest company formation processes in the world — Companies House can incorporate a straightforward Ltd in a few hours for £50 filed directly, or same-day through a formation agent. But "fast" doesn't mean "simple to get right." Between SIC codes, share structures, the People with Significant Control (PSC) register, and the ID verification rules that came into force under the Economic Crime and Corporate Transparency Act (ECCTA) 2023, there are more moving parts than most founders expect. We've registered hundreds of Ltds for founders inside and outside the UK, and this is the guide we wish someone had handed us on day one.
The Companies House Process, Step by Step
- Choose a company name. It must be unique (checked against the Companies House register), can't be offensive or imply a government connection, and if it includes a "sensitive word" (Royal, Institute, Trust), you'll need supporting justification or approval.
- Choose a registered office address. This must be a physical UK address (not a PO Box alone) where statutory mail can be delivered and inspected. This address is publicly visible on the Companies House register.
- Appoint at least one director. Must be at least 16 years old; no UK residency requirement — non-UK residents can be sole directors.
- Decide on shareholders and share structure. Minimum one share, one shareholder (can be the same person as the director).
- Select SIC codes describing what your company does.
- Complete ID verification for directors and PSCs (new requirement — details below).
- File Form IN01 (or equivalent through a formation agent's software) along with the memorandum and articles of association.
- Pay the fee: £50 for standard online registration (as of 2024), £78 for same-day, or £71 by paper post (which takes 8–10 days).
- Receive your Certificate of Incorporation with your company number — typically within 24 hours for standard digital filing.
SIC Codes: Don't Just Pick the First One
The Standard Industrial Classification (SIC) code tells Companies House and HMRC what your business does. You can select up to four codes. Common mistakes:
- Picking "82990 – Other business support service activities" as a catch-all when a more specific code exists (e.g., "62012 – Business and domestic software development").
- Not updating your SIC code when your business pivots — this doesn't legally need real-time updates, but it should be corrected at your next confirmation statement.
- Choosing a code that flags additional regulatory requirements (e.g., certain financial services codes) without realizing it.
Look up the exact SIC code list on the Companies House website rather than guessing from memory — there are over 700 codes, and precision here helps with everything from business insurance applications to industry benchmarking data you may want later.
Share Structure: Keep It Simple at Incorporation
Most single-founder or small-team companies should incorporate with a simple structure: 100 ordinary shares at £1 nominal value each is a common default. Avoid over-engineering at this stage — issuing 10,000 shares "to look bigger" creates no real advantage and just means more paperwork if you ever need to buy back or reallocate shares.
If you have co-founders, decide equity splits before incorporation, not after — changing shareholdings post-incorporation triggers Companies House filings (SH01 for allotments, stock transfer forms for transfers, potential Stamp Duty at 0.5% on transfers over £1,000) and can create awkward conversations if left unresolved.
Consider authorizing (but not necessarily issuing) an options pool early if you plan to hire and offer equity — this is easier to build in from day one than retrofit later.
People with Significant Control (PSC)
Anyone who meets one or more of these thresholds must be registered as a PSC:
- Owns more than 25% of shares
- Holds more than 25% of voting rights
- Has the right to appoint or remove a majority of directors
- Otherwise exercises significant influence or control
You must identify and register PSCs within the incorporation filing (or within 14 days of any change afterward), and PSC details (name, month/year of birth, nationality, control level) are publicly visible on the register — though your full date of birth and residential address are protected. Failing to maintain an accurate PSC register is a criminal offense with potential fines, and Companies House has increased enforcement scrutiny on this since 2023.
Registered Office vs. Director's Service Address
These are two different things and founders regularly confuse them:
- Registered office: the company's official address, publicly listed, where statutory documents are sent. As of March 2024, this cannot be a PO Box — it must be an "appropriate address" where documents can be delivered and acknowledged.
- Director's service address: a separate address for each director where personal correspondence related to their role is sent. Directors can use the registered office address as their service address, or a different one — many non-UK-resident directors use a formation agent's address here specifically to keep their home address off the public register.
Using your home address for either is legal but means it becomes permanently searchable on the public register (even after you move) — most founders we work with use a registered office/service address service instead. Bizvee's UK LTD formation package is priced at £175 and includes a full year of a London business address covering both registered office and director's service address use, so you're not stitching together separate services.
ID Verification: The New Rules
Under the Economic Crime and Corporate Transparency Act, Companies House is phasing in mandatory identity verification for all directors and PSCs. Since the rules took effect through 2025, you'll need to verify your identity either directly through Companies House's own verification service (GOV.UK One Login) or via an Authorised Corporate Service Provider (ACSP) — a role formation agents and accountants can register for. This applies to new incorporations and, on a transitional basis, to existing directors and PSCs of companies already on the register.
Practically, this means: have a valid passport or UK driving licence ready, expect a short video or photo verification step, and don't leave this until the last minute if you're filing close to a deadline — verification failures are one of the newer causes of incorporation delays we're seeing in 2024–2025.
Corporation Tax Registration
You must register for Corporation Tax with HMRC within 3 months of starting to trade (not from the date of incorporation — from when you actually begin business activity, which includes buying stock, advertising, or signing contracts). Miss this and HMRC can levy a penalty based on how late you are and how much tax was due.
Registration is done online via your Government Gateway account, and HMRC will issue a Unique Taxpayer Reference (UTR) and set your accounting reference date, which usually aligns with your Companies House year-end (last day of the month in which you incorporated, by default).
Current UK Corporation Tax rates (2024/25):
- 19% for profits up to £50,000 ("small profits rate")
- 25% for profits over £250,000
- Marginal relief applies on a sliding scale between £50,000–£250,000
VAT Threshold and Registration
You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period (this threshold rose from £85,000 effective April 2024). You can also register voluntarily below this threshold, which is often smart if:
- Your customers are VAT-registered businesses who can reclaim the VAT you charge them anyway
- You want to reclaim VAT on setup costs and equipment
Once registered, you'll typically file VAT returns quarterly through Making Tax Digital (MTD)-compliant software — HMRC requires digital record-keeping and digital submission; spreadsheets alone no longer satisfy the rules unless linked through bridging software.
PAYE: When You Hire (Including Yourself)
If you or any employee (including a director drawing a salary) earns above the Lower Earnings Limit (£123/week for 2024/25), you must register as an employer for PAYE and operate payroll, deducting Income Tax and National Insurance and reporting to HMRC in real time (Real Time Information, or RTI) each time you pay someone. Many director-only companies pay a small salary (often around the NI Secondary Threshold, roughly £758/month for 2024/25) plus dividends, which is tax-efficient but requires PAYE registration regardless of the salary size, and ongoing RTI submissions even for a single director.
Confirmation Statement
Every company must file a confirmation statement at least once every 12 months confirming that the information Companies House holds (directors, PSCs, registered office, share structure) is accurate. The filing fee is £34 online (increased from £13 in 2024) and it's due within 14 days of your "review period" ending — missing this is a criminal offense and can lead to the company being struck off.
Annual Accounts
Every Ltd company must file annual accounts with Companies House, and separately, a Company Tax Return (CT600) with HMRC:
- Companies House accounts are due 9 months after your accounting reference date (21 months after incorporation for your first set, since the first period often runs longer than 12 months).
- HMRC CT600 and Corporation Tax payment are due 9 months and 1 day after your accounting period end — note this is a different deadline calculation than the Companies House one.
Small companies can file "filleted" (abbreviated) accounts that exclude the profit and loss statement from public view, though full accounts still go to HMRC.
Dormant Companies
If you've incorporated but haven't started trading yet, you can file dormant company accounts (form AA02) with Companies House, and you should still notify HMRC that the company is dormant to avoid being chased for a Corporation Tax return. A company stops being dormant the moment it has "significant" accounting transactions — even a single sale or a bank interest payment can end dormant status, so track this carefully rather than assuming.
Costs Table
| Item | Typical Cost |
|---|---|
| Companies House incorporation (direct) | £50 |
| Formation agent package (incl. registered office + service address) | £100–£250 |
| Bizvee UK LTD package | £175 (includes 1 year London business address) |
| Confirmation statement (annual) | £34 |
| Annual accounts (accountant-prepared, small company) | £300–£1,200/year |
| CT600 filing (accountant-prepared) | Often bundled with accounts |
| VAT returns (if registered, accountant-prepared) | £30–£100/quarter |
| Payroll processing (per month, small team) | £20–£50/month |
| Registered office renewal (year 2+) | £50–£150/year |
FAQ
Can a non-UK resident register a UK Ltd company? Yes. There's no residency or citizenship requirement for directors or shareholders, though you'll need a UK registered office address (which can be provided by a formation agent).
How long does UK company registration take? Standard online filing usually completes within 24 hours; same-day service is available for an extra fee; postal applications take 8–10 working days.
Do I need a UK bank account? Not legally required for incorporation, but you'll need one (or a UK-friendly business account like Wise or Revolut Business) to trade practically, pay Corporation Tax, and satisfy most banking/compliance checks from customers or suppliers.
What's the difference between a registered office and a business address? The registered office is the statutory address for legal correspondence; a "business address" is sometimes used more loosely for trading purposes, but for official filings, only the registered office and director's service address have legal meaning.
Do I have to use my real name as director publicly? Yes, director names are public on the Companies House register, though your residential address and full date of birth are protected from public view (only month/year of birth show).
What happens if I don't file my confirmation statement? Companies House can start the process to strike the company off the register, and directors risk personal liability exposure for continuing to trade a company that's been dissolved.
Is a dormant company still counted, or can I close it easily? A dormant company must still file dormant accounts and a confirmation statement each year; if you want to close it, you can apply for voluntary strike-off (DS01) once it has no debts and hasn't traded for 3 months.
This article is for general informational purposes only and does not constitute legal, tax, or accounting advice. Consult a licensed professional about your specific situation.
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