How to Register a Company in the UK

Setting up a business is a major milestone. Whether you’re launching a tech startup, opening a small consultancy, or starting an online shop, it’s essential to understand how to register a company in the UK the right way. Doing so ensures you meet legal obligations, protect your brand, and build trust with customers and partners from day one.

This guide breaks down the full company registration process for UK residents and international entrepreneurs. You’ll find practical steps, real-world examples, and links to government resources to help you through the process—no jargon, no fluff, just clear direction.

Why Company Registration Matters

Registering your business isn’t just a formality’s the legal step that turns your idea into a recognised entity. Here’s why it matters:

• You gain legal protection (your business is separate from your finances).

• You build credibility with clients, banks, and suppliers.

• You can access tax benefits and claim business expenses.

• You become eligible for contracts, funding, and business loans.

Failing to register properly can lead to penalties, limited access to financial tools, and reputational risks.

Types of Companies You Can Register

There are different structures for different business needs. The most common types in the UK include:

Documents You Need Before Registering

Before you register, gather the following:

• Company name: Must be unique and not offensive. Check availability using the Companies House name checker.

• Registered office address: A UK address where official correspondence can be sent.

• Director details: You need at least one director aged 16 or older.

• Shareholder information: Even if you’re the only shareholder.

• Memorandum and articles of association: These outline the company’s structure and rules.

Step-by-Step Guide to Registering a Company

You can register a company online or by post. Here’s a practical step-by-step guide to registering your business through Companies House:

Step 1: Choose Your Company Name

• Avoid names that are too similar to existing companies.

• You can’t use sensitive words (e.g., “Royal”) unless approved.

Step 2: Pick a Company Structure

• Most entrepreneurs start with a Private Limited Company (Ltd).

• Choose LLP or CIC if it fits your mission better.

Step 3: Provide a Registered Office Address

• Must be a physical UK address. You can use a home or an accountant’s office.

Step 4: Appoint Directors and a Company Secretary (Optional)

• At least one director is required. A company secretary is optional.

Step 5: Define Shareholders and Share Structure

• You must issue at least one share. You can add more later.

Step 6: Create Your Memorandum and Articles of Association

• Use standard templates provided by Companies House, or create your own.

Step 7: Register Online

• Visit gov.uk/gov.uk/register-a-company-online

• The online application usually takes 24 hours.

• The registration fee is £12.

Alternatively, you can register by post (Form IN01), which costs £40 and takes 8–10 days.

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Costs Involved in UK Company Registration

Keep in mind that even if the registration fee is low, you’ll also have annual responsibilities like submitting accounts and confirmation statements.

Using an Accountant or Formation Agent

Hiring a professional can save you time and help avoid errors. Consider this if:

• You’re not confident with online forms.

• You’re registering a complex share structure.

• You want to set up VAT or PAYE at the same time.

Many accountants offer business formation as part of a package. Compare prices carefully and ensure they are registered with HMRC or a professional body.

Legal Compliance After Registration

Once your company is set up, you’re legally responsible for the following:

• Confirmation Statement: Filed annually to confirm company details.

• Annual Accounts: Even dormant companies must file accounts.

• Corporation Tax Registration: Must be done within 3 months of starting activity.

• PAYE Setup (if hiring staff): Register with HMRC.

• Business Insurance: Employers’ liability insurance is required if you hire staff.

For more on staying compliant, see our UK business compliance guide.

Common Mistakes to Avoid

• Choosing a company name without checking trademarks

• Missing deadlines for filing annual accounts

• Not informing HMRC about business activity

• Failing to set up a business bank account

• Overcomplicating the share structure unnecessarily

Avoid these pitfalls by planning properly and seeking guidance when needed.

Action Steps Before and After Registration

Before Registration:

• Decide on the company structure

• Choose a unique name

• Gather required documents

• Research responsibilities as a director

After Registration:

• Register for Corporation Tax

• Open a business bank account

• Keep records of income, expenses, and decisions

• Set reminders for filing obligations

• Consider appointing an accountant or bookkeeper

Frequently Asked Questions

1. How long does it take to register a company in the UK?

If done online, it typically takes 24 hours. Postal applications may take up to 10 days.

2. Can non-UK residents register a UK company?

Yes. You don’t need to live in the UK, but the company must have a UK-registered office address.

3. Do I need a business bank account?

While not legally required, a separate bank account is essential for financial tracking, legal compliance, and professionalism.

4. What taxes do UK companies pay?

Companies pay Corporation Tax on profits. If you hire staff or reach the VAT threshold (£90,000), additional registrations are needed.

5. Is it better to register as a sole trader or a limited company?

It depends on your goals. Sole traders have fewer obligations but more personal risk. Limited companies offer liability protection and are often seen as more credible.

Conclusion

Learning how to register a company in the UK is a crucial first step in launching a successful business. By understanding the process, choosing the right structure, and staying compliant, you set your venture up for long-term success. Whether you register directly through Companies House or use a trusted formation agent, the goal is the same: to establish a legal foundation for growth.

For more step-by-step business guides and UK startup advice, visit Derektime.co.uk and explore our resource library tailored to small business owners and entrepreneurs.