Why Form a Limited Company?
A UK limited company is one of the most popular business structures for entrepreneurs and small business owners. It offers limited liability protection, a more professional image, potential tax advantages, and makes it easier to bring in investors or partners. Here's how to set one up.
Step 1: Choose a Company Name
Your company name must be unique and not too similar to an existing registered company. You can check name availability on the Companies House register. The name must end in "Limited" or "Ltd" (or the Welsh equivalents if registering in Wales).
Avoid names that are offensive, suggest a connection to government, or include certain restricted words without approval.
Step 2: Choose Your Registered Office Address
Every UK limited company must have a registered office address in the same jurisdiction where it is registered (England & Wales, Scotland, or Northern Ireland). This address is publicly visible on Companies House.
To protect your privacy, consider using a professional registered office address service like Spectre Offices rather than your home address.
Step 3: Appoint Directors and a Company Secretary
You need at least one director who is 16 or over. A company secretary is optional for private limited companies but recommended for larger businesses. Directors' details — including their service address — will be publicly listed on Companies House.
Step 4: Identify Persons with Significant Control (PSCs)
You must identify anyone who owns more than 25% of shares, controls more than 25% of voting rights, or has significant influence over the company. Their details must be recorded on the PSC register.
Step 5: Prepare Your Articles of Association
The articles of association set out the rules for running your company. Most companies use the standard "model articles" provided by Companies House, which are suitable for most small businesses.
Step 6: Register with Companies House
You can register your company online via the Companies House website for a fee of £50 (as of 2024). You'll need to provide your company name, registered office address, director details, share structure, and PSC information. Most applications are processed within 24 hours.
Step 7: Register for Corporation Tax
Once your company is registered, you must notify HMRC within 3 months of starting to trade. You'll need to register for Corporation Tax and file annual accounts and a Company Tax Return each year.
Step 8: Open a Business Bank Account
A dedicated business bank account keeps your personal and business finances separate, which is essential for a limited company. Many UK banks offer business accounts specifically for new companies.
Get Your Registered Office Address with Spectre Offices
One of the first things you'll need when forming your company is a registered office address. Spectre Offices provides fully compliant registered office addresses across the UK, with mail forwarding and scanning included.
Get your registered office address today and start your company the right way.
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