The four decisions before you incorporate
Decision 1: the company name
The name has to be unique on the Companies House register and can’t be too similar to an existing one. The Companies House name availability checker tells you whether your preferred name is free. Restricted words (Royal, British, Bank, Chartered, etc.) need additional approval and add cost and time; avoid unless necessary. The name ends in “Limited” or “Ltd” for English and Scottish companies, or “Cyfyngedig” (“Cyf”) for Welsh.
Many founders use a generic holding-style name (initials plus “Consulting” or similar) for flexibility, then trade under a more specific brand name on day-to-day business. The trading name doesn’t have to match the company name as long as the company name appears on invoices, contracts, the website footer, and the email footer where required.
Decision 2: the registered office address
The registered office is the legal address where official mail is sent (Companies House correspondence, HMRC, court papers). It becomes public on Companies House and is searchable by anyone.
Options. Your home address (free, but public). A registered office service from a formation provider (£50-£100/year, keeps your home address private). A virtual office service (£100-£300/year, with mail forwarding). A serviced office if you have one. For most one-person businesses, a registered office service is the right cost-privacy balance.
Decision 3: the share structure
For a single founder, the standard structure is 1-100 ordinary £1 shares, all held by you. 100 is convenient because percentages map directly to share counts; the total number is otherwise arbitrary. You allot the shares to yourself at incorporation, becoming the sole director and shareholder.
For two co-founders, 100 shares split 50/50 or 60/40 are typical. For anything more complex (investors, employee share options, multiple share classes), get advice before incorporation. Restructuring share classes later costs legal fees and is harder than getting it right initially.
Decision 4: the SIC code
Standard Industrial Classification codes describe what your company does. There are about 800 codes on the Companies House list; pick the closest match (you can pick up to four if your business spans categories). The code is mainly statistical and doesn’t restrict what the company can actually do.
Common codes for new businesses: 70229 (other management consultancy activities), 62012 (business and domestic software development), 73110 (advertising agencies), 74909 (other professional, scientific and technical activities), 70210 (public relations and communications activities). Don’t agonise; you can amend the code later through the confirmation statement.
The incorporation process step by step
- Go to gov.uk/limited-company-formation and click through to the online registration form (Web Filing or the IN01 form).
- Pay the £50 fee.
- Enter the company details: name, registered office address, director(s), shareholder(s), share structure, SIC code(s), and the standard articles of association (the model articles are fine for most one-person companies).
- Submit. Confirmation usually arrives within 24 hours, often within hours.
- You receive: the certificate of incorporation, your company number, the date of incorporation, and the memorandum and articles of association. HMRC is automatically notified.
The formation-service alternative
A formation service handles the same Companies House submission on your behalf, usually bundling some extras (registered office address, basic compliance setup, sometimes a one-year company-secretary service). Cost typically £30-£150 on top of the £50 Companies House fee. The advantage is speed and not having to navigate Companies House paperwork yourself; the disadvantage is paying for something you could do directly.
What to set up immediately after incorporation
Within the first week of incorporation:
- Business bank account. Challenger banks (Tide, Starling Business, Monzo Business) open accounts in 1-3 days. Required by law for limited companies; you can’t legitimately use a personal account.
- Accountant. Specialist freelance/ contractor accountants charge £80-£150/month and bundle annual accounts, corporation tax, payroll (if you pay yourself a salary), VAT (once registered), Self Assessment for dividends, and accounting software. Onboarding takes about a week.
- Accounting software. FreeAgent, Xero, QuickBooks are the main options. Often bundled free with specialist accountants.
- Corporation tax registration confirmation. Arrives automatically by post within 14 days. Note your corporation tax UTR and the year-end date.
Within the first month:
- Company stationery — letterhead and invoice templates with your company number on them.
- A website if appropriate (a one-page placeholder is fine for the first year).
- VAT registration decision (mandatory above £90,000 turnover; voluntary below).
- Decision on whether to set up a salary alongside dividends (most one-person companies pay a small salary of £12,570 to use the personal allowance, plus dividends; your accountant will advise).
Annual filings to plan for
Once incorporated, three recurring filings:
- Confirmation statement — annual, due 14 days after the anniversary of incorporation. Confirms registered office, directors, shareholders, SIC codes. £13 to file online.
- Annual accounts — due 9 months after year-end. Small companies file abbreviated accounts. The accountant handles this.
- Corporation tax return — due 12 months after year-end, with payment due 9 months and 1 day after year-end. The accountant handles this.
Common mistakes
The recurring ones: making the name too narrow (“Acme Plumbing Ltd” when you might also do electrics); using your home address as the registered office without realising it becomes public; setting up a complex share structure for a one-person business; missing the confirmation statement deadline (which causes Companies House to threaten to strike the company off); not opening a separate business bank account immediately.
Frequently asked questions
- How do I register a limited company in the UK?
- Three options: direct on Companies House (£50, 24 hours), through a formation service (£50-£150, same speed but bundles extras like registered office and compliance setup), or through an accountant (often free as part of monthly accountancy fees). The information needed is the same in all three: company name, registered address, director and shareholder details, share structure, SIC code.
- What does it cost to register a limited company?
- Companies House charges £50 for online incorporation. Formation services typically add £30-£100 to bundle additional services (registered office address, basic compliance setup, sometimes a year of registered office). A specialist accountant often handles formation as part of their onboarding for free or a small fee.
- Can I use my home address for the company?
- Yes, but it becomes a public record on the Companies House register and anyone can search for it. Many formation services offer a registered office address for £50-£100/year, keeping your home address private. Worth considering particularly if you'll have any public visibility (customers, social media, etc.).
- What's an SIC code?
- Standard Industrial Classification. A short code describing what the company does. You pick one (up to four) during incorporation from a list on the Companies House website. It's used for statistical purposes and doesn't restrict what the company can actually do. Common ones for new consultants: 70229 (other management consultancy); for developers: 62012 (business and domestic software development).
General information about Companies House registration. For tax and legal questions specific to your business, consult an accountant and a solicitor.
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