Setting up a limited company in the United Kingdom remains a popular route for freelancers, start‑ups and growing businesses. It offers limited liability, a professional image and a tax structure that can be more favourable than sole‑trader status. Yet the paperwork can feel daunting if you haven’t done it before. This guide walks you through every requirement, cost and deadline you’ll face in 2026, so you can get your company off the ground without surprise.
Quick Overview: What You Need to Know
- Register online at Gov.uk/set-up-limited-company or via Companies House WebFiling – the online route usually processes your application within a few hours.
- Cost: £12 for the standard online filing (same‑day registration), £30 if you post paper forms (8‑10 business days), and an additional £30 for the same‑day premium service that guarantees a certificate by 5 pm.
- Key requirements: a unique company name, a registered office address in the UK, at least one director aged 16 or over, at least one shareholder, a Standard Industrial Classification (SIC) code, and a set of articles of association.
- What you receive: a Certificate of Incorporation and a unique eight‑digit company number (e.g., 12345678) which you’ll need for every future filing.
- Ongoing duties: file annual accounts with Companies House within nine months of your accounting reference date, submit a confirmation statement each year (£13 online), keep statutory registers up to date, and file corporation tax returns with HMRC within 12 months of the end of your accounting period.
- Corporation tax rates for 2026: 19 % on profits up to £50,000, 25 % on profits over £250,000, with marginal relief applying between those thresholds.
- Typical professional costs: accountants charge between £50 and £200 per month depending on the complexity of your accounts, while payroll software for paying yourself a salary and dividends can run £10‑£30 per month.
Prerequisites Before You Start
Getting the basics right saves you time and prevents rejections from Companies House. Here’s what you need to have ready before you click ‘submit’.
- Company name: Use the Companies House name availability checker at Companieshouse.gov.uk. The name must not be identical to an existing registered name, must not contain sensitive or offensive words, and can't suggest a connection with the Crown or a government department without permission.
- Registered office address: This must be a physical address in England, Scotland, Wales or Northern Ireland where official correspondence can be delivered. It can be your home, a virtual office service or a serviced office provider, but PO Boxes aren't accepted.
- Director(s): At least one director is mandatory. Directors must be at least 16, not be disqualified from acting as a director, and must provide a residential address (which won't be made public) as well as a service address (the registered office can serve this purpose).
- Shareholder(s): You need at least one person or entity to hold shares. A single‑person company is common – the director can also be the sole shareholder, holding one ordinary share of £1 each.
- SIC code: Choose a code that best describes your main activity. For example, 62020 covers “Information technology consultancy activities”. The full list is available on the Office for National Statistics website.
- Articles of association: Most new companies adopt the model articles supplied by Companies House – they cover director powers, shareholder rights and meeting procedures. If you have a specific governance structure, you can upload a bespoke document, but it must be signed by a director.
Step‑by‑Step: How to Register Your Limited Company
Follow these eight steps to have your company incorporated by the end of 2026.
1. Choose and reserve your company name
Search the Companies House register. If the name is free, you can proceed straight to registration – there’s no formal reservation system, but you’ll want to act quickly because the name can be taken at any moment.
2. Gather the required information
Prepare the director’s full name, date of birth, nationality, residential address and service address; the shareholder’s name and the number of shares they will hold; the SIC code; and the address of your registered office. Have a copy of the articles of association ready, either the model version (which you can accept by ticking a box) or a customised file in PDF format.
3. Create a Companies House WebFiling account
Visit the Companies House portal and register for an account using your personal email. You’ll receive a verification code by post within five days – this is a security step to confirm your identity.
4. Complete the IN01 incorporation form
The online form mirrors the paper IN01. Fill in the company name, registered office, director and shareholder details, SIC code and articles of association. Double‑check the spelling of every name; a typo can cause a delay of up to two weeks while you correct it.
5. Pay the registration fee
Pay £12 by credit or debit card for the standard service. If you need the certificate the same day, add the £30 premium. Payment is processed instantly, and you’ll see a confirmation screen with a reference number.
6. Receive your Certificate of Incorporation
For online filings, Companies House emails a PDF copy within minutes. The physical certificate arrives by post within two working days. Keep this document safe – you’ll need the company number for tax registration and banking.
7. Register for corporation tax with HMRC
Within 30 days of incorporation, log onto Gov.uk/register-for-corporation-tax and provide your company number, accounting reference date and the date you started trading. HMRC will issue a Unique Taxpayer Reference (UTR) by post, usually within ten days.
8. Open a business bank account
Most banks require your Certificate of Incorporation, proof of identity for the director(s), and the UTR. Some challenger banks let you set up an account within 24 hours using only digital verification, which is handy for start‑ups.
Tips for a Smooth Incorporation
- Use the same address for the registered office and the director’s service address to avoid extra paperwork.
- Allocate a small number of shares (e.g., one ordinary share of £1) to the initial shareholder – you can issue more later without filing a new form.
- Consider adopting the “salary plus dividend” model from day one; paying yourself a salary up to the personal allowance (£12,570 for 2026‑27) can reduce NICs while dividends are taxed at lower rates.
- Set a reminder for the 30‑day corporation tax registration deadline – HMRC will send a penalty notice if you miss it.
- Keep digital copies of all statutory registers (members, directors, secretaries and charges) – Companies House accepts electronic records for inspection.
Common Mistakes to Avoid
- Choosing a name that’s too similar to an existing brand – this leads to a rejection and can waste the £12 fee.
- Leaving the registered office address as a PO Box – the filing will be rejected outright.
- Failing to file the first confirmation statement within 12 months – a £150 late filing penalty applies.
- Missing the nine‑month deadline for annual accounts – Companies House can levy a daily penalty of £150 after the due date.
- Not informing HMRC of the accounting period start date – this can delay your corporation tax return and attract interest charges.
Quick‑Reference Summary
| Task | Where to Do It | Cost | Typical Deadline |
|---|---|---|---|
| Check name availability | Companieshouse.gov.uk | Free | Before registration |
| Online incorporation (standard) | Gov.uk/set-up-limited-company | £12 | Same‑day processing |
| Post incorporation (paper) | Companies House | £30 | 8‑10 business days |
| Corporation tax registration | Gov.uk/register-for-corporation-tax | Free | Within 30 days of incorporation |
| Annual confirmation statement | Companies House WebFiling | £13 online | Every 12 months |
| Annual accounts filing | Companies House WebFiling | Free (if filing online) | Within 9 months of accounting reference date |
Setting up a limited company in the UK in 2026 is straightforward if you follow the right steps. From securing a unique name and filing the IN01 form to meeting the post‑incorporation tax and filing deadlines, each stage builds the legal foundation for your business. As the Companies House website reminds you, "accurate and timely filings keep your company in good standing" – and that’s the final piece of advice you’ll need.
This article was created with AI assistance.
