Company formation (UK)
How to form a limited company in the UK — choosing between Ltd and PLC, the incorporation process at Companies House, statutory documents, and ongoing obligations.
Quick answer
To form a private limited company (Ltd) you file IN01 at Companies House with a £50 fee (online, 24 hours) or £71 (postal, 8–10 days). You need a unique company name, registered office address, at least one director, at least one shareholder, statement of capital, and articles of association (model or bespoke). Once incorporated, the company is a separate legal person with limited liability. Ongoing obligations include annual accounts, confirmation statement, corporation tax return, and PSC register.
Overview
A UK limited company is a separate legal entity with its own rights, debts, and liabilities. The most common form is the private company limited by shares (Ltd), used for everything from one-person consultancies to large private businesses. Public Limited Companies (PLC) have higher capital requirements and can list shares. This guide focuses on Ltd formation. Forming a company is straightforward; the harder part is ongoing compliance — and getting the directors' duties wrong is a common source of professional negligence claims.
Who Can Use This Process
- You are likely eligible to use this guide if your situation involves company formation (uk).
- You have a genuine legal basis for the matter (contract, tort, statutory right, etc.).
- You have made reasonable attempts to resolve the matter directly with the other party first.
Step-by-Step Process
Choose a company name
Use Companies House's name-availability checker. The name cannot be the same as an existing company, cannot contain sensitive words (e.g. 'bank', 'royal') without permission, and must end with 'Limited' or 'Ltd'.
Decide on directors and PSCs
At least one director (must be 16+). At least one shareholder (can be the director). A 'Person of Significant Control' (PSC) is any shareholder owning more than 25% — they must be registered separately.
Registered office address
Must be in the UK; will be on the public register. Can be your home, an accountant's office, or a service-address provider (around £50–£100/year).
Articles of association
Use the Model Articles for most companies. For investor-driven or family companies, bespoke articles drafted by a solicitor are common. Articles govern internal decision-making.
File IN01 at Companies House
Online application £50, postal £71. Online incorporation is usually completed within 24 hours; postal takes 8–10 days. You get a certificate of incorporation and a unique company number.
Post-formation obligations
Register for corporation tax (within 3 months of starting to trade), open a business bank account, register for VAT if turnover exceeds £90,000, register for PAYE if employing, and submit annual accounts and confirmation statement to Companies House.
Costs
Important Warnings
Directors' duties (Companies Act 2006 ss.171–177) are personal — directors can be personally liable for breach of duty or for wrongful trading near insolvency.
PSC register inaccuracies are a criminal offence (since the Economic Crime and Corporate Transparency Act 2023).
Companies House identity-verification requirements are tightening from 2024 onwards — directors and PSCs need verified identities.
Useful Links
Frequently asked questions
- How much does it cost?
- Main outlays are: Companies House online incorporation — £50; Companies House postal incorporation — £71; Confirmation statement (annual) — £34 online, £62 postal; Registered office service (optional) — £50–£200/year. Court fees often qualify for Help with Fees remission if you're on a low income. Solicitor fees are extra and vary widely — many matters can be done as a litigant in person.
- What are the most common mistakes to avoid?
- Watch out for: Directors' duties (Companies Act 2006 ss.171–177) are personal — directors can be personally liable for breach of duty or for wrongful trading near insolvency.; PSC register inaccuracies are a criminal offence (since the Economic Crime and Corporate Transparency Act 2023).; Companies House identity-verification requirements are tightening from 2024 onwards — directors and PSCs need verified identities.. If you're unsure on any of these, get advice from a regulated solicitor or a free service like Citizens Advice before acting.
- Where can I find the official forms and guidance?
- The official sources are: Set up a private limited company — gov.uk; Companies House WebFiling; Companies Act 2006. Always use the forms / guidance from the issuing authority's own site — third-party copies can be out of date.
- Can I do this myself without a solicitor?
- Yes — many people complete this kind of matter as a litigant in person. The site walks through each step in plain English. A solicitor is recommended if: large sums are at stake, the other side has legal representation, the matter involves criminal liability, children, immigration, or you're unsure on any procedural deadline. Free advice is available from Citizens Advice, Law Centres, and (for some matters) LawWorks pro bono clinics.