The Ultimate Guide to Company Formation in the UK

Company formation in the UK is quick once you know what Companies House asks for. Most applications are approved within a day, and the whole thing is done online. What takes the time is the set of decisions behind the form: the name, who runs and owns the company, where it is based, and how its shares are split. This guide goes through each part of the application in the order Companies House asks for it, including the identity checks that became compulsory in 2025.

Step 1: choose a company type

Almost every new business forms a private company limited by shares, which is what this guide covers. The owners hold shares and their liability is limited to what they paid, or promised to pay, for those shares. Charities and clubs often use a company limited by guarantee instead, which has members rather than shareholders.

Step 2: choose and check the name

The name must end in "Limited" or "Ltd" (or the Welsh equivalent). It cannot be the same as a name already on the register, and Companies House treats names that differ only in small ways, such as punctuation, "and" against "&", or a word like "UK", as the same name. Some words need permission before you can use them, such as "Bank", "Royal", "Chartered" or words suggesting a link to the government, and offensive names are refused.

A name that is free at Companies House can still be someone else's trade mark. Check the trade mark register before you commit to a name, especially if you plan to build a brand around it.

Step 3: the registered office and email

Every company needs a registered office: the official address where letters from Companies House, HMRC and the courts are sent. Since March 2024 it must be an "appropriate address", meaning post sent there would be expected to reach someone acting for the company and could be acknowledged. A PO box on its own is not allowed. The address must be in the part of the UK where the company is registered, so a company registered in England and Wales needs an address in England or Wales.

The registered office is published. If you would rather your home address stayed private, use a registered office address service.

You also give a registered email address. Companies House uses it to contact the company and does not publish it.

Step 4: directors and identity verification

A private company needs at least one director who is a real person aged 16 or over. Directors cannot be disqualified or, without the court's permission, undischarged bankrupts. There is no residence rule, so a director can live anywhere in the world.

Every director must have verified their identity with Companies House before they can be appointed, and their personal code goes on the application. You can verify for free through GOV.UK One Login, or use an authorised agent such as an accountancy firm; our director ID verification service does exactly that. Directors give a service address, which is published, and a home address, which is kept private.

A company secretary is optional for a private company.

Step 5: shares and shareholders

You decide how many shares the company issues, their value and who holds them. Many small companies start with 100 ordinary shares of £1 each, which makes percentages easy to follow. The application includes a statement of capital, listing the shares, what was paid for them and the rights attached to them.

Think about the split now. Shares decide who receives dividends and who controls votes, and changing the split later means issuing or transferring shares and filing the change.

Step 6: people with significant control

You must tell Companies House who has significant control of the company. That includes anyone holding more than 25% of the shares or voting rights, anyone who can appoint or remove most of the directors, and anyone with significant influence over the company in other ways. In most small companies the PSCs are simply the main shareholders. Each PSC must also verify their identity, within the time Companies House allows after the company is formed.

Step 7: the articles of association

The articles are the company's rulebook: how directors make decisions, how shares are transferred and how meetings work. Most small companies adopt the government's model articles, which work well for a straightforward company. If you have several shareholders with different roles, consider a shareholders' agreement alongside them to cover what the articles do not, such as what happens when someone leaves.

The founding shareholders also sign the memorandum of association, a short statement that they wish to form the company and become members.

Step 8: SIC codes and the lawful purpose statement

You describe what the company does by choosing one or more SIC codes, the standard list of business activities. Choose the codes that best fit what you will actually do; you can change them later on your confirmation statement. Since March 2024 you must also confirm that the company is being formed for a lawful purpose.

Company formation UK fees and timing

How you registerCompanies House feeTypical timing Online or through an agent's software£100Usually within 24 hours Same-day service£156Same day if submitted early Paper form IN01£124Several days or more

These are the fees on the Companies House fees list. A formation agent adds their own fee on top, and should show both before you pay.

What you receive

Once the company is registered, Companies House issues a certificate of incorporation with the company number and date of incorporation. The company appears on the public register straight away. HMRC is told automatically and posts the company's Unique Taxpayer Reference to the registered office within a few weeks.

After company formation

Registration is the start. Within three months of trading the company must register for Corporation Tax, it needs a business bank account, and the yearly filings begin from the date of incorporation. Our guide to your first two years as a company covers each step, and our guide to limited company costs sets out the running costs.

Form your company with us

Our company formation service checks your name, takes your directors, shareholders and PSCs through the identity checks, and files the application, usually the same working day. If you live outside the UK, our non-resident company formation covers the extra steps.