How to Set Up a Limited Company in the UK

How much does it cost to set up a limited company?

The Companies House fee changed on 1 February 2026. The current fees are:

Method	Fee	Time
Online (standard)	£100	Usually within 24 hours
Paper (form IN01)	£124	8 to 10 days
Same-day (software filing)	£156	Same working day if filed before 3pm

Many older guides still quote £50 for online registration — that was the fee before February 2026 and is now out of date. The fee is charged on the date of incorporation, not the date you submit the application, so a company incorporated on or after 1 February 2026 pays the new fee even if the application went in earlier.

What you need before you register

• A company name. It must not be the same as an existing company, and it must normally end in “Limited” or “Ltd”.
• A registered office address. This must be a physical address in the same part of the UK as the company, and it cannot be a PO Box. It is published on the public register.
• At least one director. One person can be the sole director, sole shareholder and person with significant control.
• Shareholders and share details. How the shares are split, because the split decides who counts as a person with significant control.
• People with significant control (PSCs). Anyone who owns more than 25% of shares or voting rights, or who otherwise controls the company.
• A memorandum and articles of association. The online service writes the memorandum for you if you use the standard model articles.

Identity verification: a new step

Identity verification has been mandatory for new directors and people with significant control since 18 November 2025. Every individual director and PSC needs a Companies House personal code before the company is registered. Without a verified code, an appointment is not valid.

You verify your identity directly through Companies House using GOV.UK One Login, or through an authorised agent. There is no separate Companies House charge for verifying directly; if a formation agent handles it for you, the work may sit inside their service fee.

How to register

1. Prepare your details

Get each director’s personal code, agree the company name and share split, and have a registered office address and a monitored email address ready.

2. File online with Companies House

Use the official GOV.UK registration service. The online service is designed for private companies limited by shares using the model articles. If your company needs bespoke articles, or the name will not include “Limited”, you will need to file by post instead.

3. Pay the fee and receive your certificate

Pay by debit or credit card. Once accepted, you receive a certificate of incorporation by email, along with your company registration number. The online service usually also signs the company up for Corporation Tax in the same step, and can set up PAYE if the company will employ people — including you as the only director.

What happens after incorporation?

• Register for Corporation Tax with HMRC within three months of starting to trade. There is no fee for this.
• Corporation Tax rates: 19% on profits up to £50,000 (small profits rate) and 25% on profits over £250,000 (main rate), with marginal relief in between.
• Confirmation statement: every company must file a confirmation statement each year, confirming its details are up to date. It costs £50 to file online from February 2026.
• Annual accounts: you must file accounts with Companies House every year, and a Company Tax Return with HMRC.

Sole trader or limited company?

A limited company is its own legal entity, so your personal assets are normally protected if the company runs into trouble — this is called limited liability. It also tends to look more credible to banks and larger clients. The trade-off is more admin: annual filings, accounts, and keeping company records. Many founders start as sole traders and incorporate once profits grow.

Frequently asked questions

How long does it take to set up a limited company?
Online registration is usually approved within 24 hours, often the same day. Paper filing takes 8 to 10 days.

Can one person set up a limited company?
Yes. One person can be the sole director, sole shareholder and person with significant control.

Do I need an accountant to set up a limited company?
No. You can register yourself through the GOV.UK service. Many new directors still use an accountant for annual accounts and tax returns.