YF AccountingLast updated: 13 August 2026
6 min read
You form a limited company by registering it with Companies House, which costs £100 online and is usually complete within 24 hours. Before you start you will need a company name, at least one director, at least one shareholder, a registered office address and, for anyone registering in 2026, a verified identity with Companies House.
This guide walks through the whole process in order: what to prepare, how the registration works, what it costs and what to do once your certificate of incorporation arrives. If you are still weighing up whether a company beats staying self-employed, read our sole trader vs limited company comparison first and come back when you are ready.
What you need before you register
Registration itself takes about twenty minutes online. The time is in the preparation, so have these six things ready first:
- A company name. It cannot be the same as an existing registered name, and words like “accredited” or “chartered” need permission. Check availability on the Companies House register before you get attached to anything.
- At least one director. Directors must be 16 or over. You do not need a company secretary.
- At least one shareholder. This can be the same person as the director, which is exactly how most one-person companies start.
- Your people with significant control (PSCs). Anyone holding more than 25% of the shares or voting rights. In a typical owner-managed company, that is you again.
- A registered office address and email. The address must be a real UK address where official post will reliably reach the company, and it appears on the public register. You also give Companies House a registered email address, which stays off the public record.
- A SIC code. A short code that describes what the company does. You pick it from a standard list during the application, and you can change it later.
New for 2026 registrations: identity verification
Since 18 November 2025, identity verification has been a legal requirement at Companies House. When you register a new company you now provide a Companies House personal code for each director, and PSCs must verify as well. You get your code by verifying once through GOV.UK One Login, or through an authorised agent such as an accountant. It is free, it takes a few minutes with photo ID, and you only ever do it once, so tick it off before you start the application itself.
How to register your company, step by step
- Verify your identity. Every director gets their Companies House personal code first. Keep it somewhere safe, because you will need it for each company you register or join.
- Choose and check your name. Run it through the Companies House name availability checker, and have a quick look at the trade mark register too. A name can be free to register yet still tread on someone’s trade mark.
- Confirm your directors, shareholders and PSCs. Decide how many shares to issue and who holds them. Most small companies issue a small round number of ordinary shares, often just one per founder.
- Sort your registered office. Your home address is allowed if official mail will reach you there, but remember it becomes public. Plenty of directors use their accountant’s address instead.
- Pick your SIC code. Choose the code that best matches your main activity. Close enough is fine, this is a label rather than a cage.
- Adopt your governing documents. Every company needs a memorandum and articles of association. The standard model articles suit most new companies, and the online service handles them for you.
- Register online at GOV.UK. The official registration service costs £100, paid by card, and your company is usually registered within 24 hours. You will create a Government Gateway ID for the company, you are normally set up for Corporation Tax at the same time, and you can register as an employer for PAYE in the same application. Your certificate of incorporation follows, showing your company number and date of formation.
What it costs in 2026
| Companies House filing | Fee |
|---|---|
| Incorporation, online | £100 |
| Incorporation, by post (8 to 10 days) | £124 |
| Same day incorporation, via software | £156 |
| Confirmation statement, online (yearly) | £50 |
| Change of company name, online | £20 |
These are the Companies House fees current in July 2026. The one that catches people out is the confirmation statement: it is not a one-off, it is an annual filing with an annual fee, and forgetting it is one of the fastest ways to get a company struck off.
After your company is registered
The certificate of incorporation is the starting line, not the finish. Shortly after registration HMRC posts the company’s Unique Taxpayer Reference (UTR) to your registered office, and you use it to add Corporation Tax services to the company’s business tax account. Then get these in place early:
- A business bank account. The company is a separate legal person, so its money and yours must not share an account.
- Your deadlines in the diary. Annual accounts go to Companies House 9 months after your financial year end (your first set runs to slightly different dates), Corporation Tax is paid 9 months and 1 day after the end of each accounting period, the Company Tax Return is filed within 12 months, and the confirmation statement is due at least once every 12 months.
- VAT registration, when it is time. Registration becomes compulsory once taxable turnover passes £90,000 in any rolling 12 months. Growing towards it? Here is what to do before you cross the VAT threshold.
- PAYE, before you pay a salary. If the company will pay you or anyone else a wage, register as an employer first. If you skipped it at incorporation, it can be done afterwards.
- A record-keeping habit. Log costs from day one. Most genuine running costs reduce your Corporation Tax bill, and our guide to allowable expenses for limited companies shows what counts.
The tax picture once you start trading
Your company pays Corporation Tax on its profits. For the financial year starting 1 April 2026 the small profits rate is 19% on profits up to £50,000, the main rate is 25% on profits above £250,000, and marginal relief tapers the rate in between.
How you pay yourself matters just as much. Most director-shareholders still use a mix of a small salary and dividends, though the sums have shifted for 2026/27: dividends above the £500 allowance are now taxed at 10.75% for basic rate taxpayers and 35.75% at higher rate, both up two percentage points on last year, with the additional rate unchanged at 39.35%. Before you set your own pay, run through our salary vs dividends guide for 2026/27.
Frequently asked questions
How much does it cost to set up a limited company in 2026?
£100 if you register online, £124 by post, or £156 for same day incorporation through formation software. Budget for the running costs too: a £50 confirmation statement fee each year, plus accountancy and bookkeeping software if you use them.
How long does it take to form a limited company?
Online applications are usually registered within 24 hours, and often faster. Postal applications take 8 to 10 days. If you need the company on a specific day, same day incorporation is available through software for £156, provided you file in time.
Do I need to verify my identity before I can register a company?
Yes. Since 18 November 2025 every director needs a Companies House personal code, provided as part of the registration, and PSCs must verify too. Verification is free through GOV.UK One Login, or an authorised agent such as an accountant can do it for you, and it only ever needs doing once.
Can I use my home address as my registered office?
Yes, as long as it is a real UK address where official post will reach the company, but it will appear on the public register for anyone to look up. Many directors prefer to use their accountant’s address for privacy. The registered email address you provide alongside it is not published.
Do I need an accountant to form a limited company?
No, you can register yourself for £100. Where an accountant earns their keep is everything that follows: payroll, dividends, VAT, year-end accounts and the deadlines that carry penalties. YF Accounting runs limited company accounts and Corporation Tax on a fixed monthly fee from £50, formation included, so you start on the right footing from day one.
Thinking of incorporating this year? Get in touch for a free chat about whether a company is the right move for you, and if it is, we will handle the paperwork from there. For everything else on getting a new business off the ground, browse our Starting a Business guide.
Founder of YF Accounting — a fixed-fee, fully digital accountancy practice in Manchester serving SMEs, sole traders and landlords across the UK. One point of contact, unlimited support, no surprise bills.
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