Setting up a limited company in the UK is a strategic choice for many entrepreneurs due to its advantages in liability protection and tax efficiencies. This guide provides you with a robust roadmap to register your limited company, filled with practical information and relevant website links to support you in your journey.
Table of Contents
- Choosing a Company Name
- Setting up a Unique Taxpayer Reference (UTR) Number
- Creating a Memorandum and Articles of Association
- Registering with Companies House
- Opening a Business Bank Account
- Applying for VAT Registration
- Registering with HMRC for PAYE
- Setting up a Registered Office Address
- Understanding the Basics of Annual Returns and Financial Reporting
- Final Thoughts
- Choosing a Company Name
The first step is to select a unique name for your company. The company name should not already be in use by another registered company and cannot be too similar to an existing company. Avoid sensitive words and expressions that may require approval from relevant authorities. Verify the availability of your desired company name using the company name checker on the official Companies House website:
https://ewf.companieshouse.gov.uk/companysearch?cta=start
- Setting up a Unique Taxpayer Reference (UTR) Number
Once you have a suitable company name, you must apply for a Unique Taxpayer Reference (UTR) number, which will be used for all your dealings with HM Revenue and Customs (HMRC). When you register your limited company with Companies House, they will inform HMRC, who will then send you the UTR number within a few weeks. If you don’t receive your UTR number within this period, you can request it from the HMRC:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment-tax-returns
- Creating a Memorandum and Articles of Association
The Memorandum of Association is a document containing essential information about the company, such as the company name, the company’s purpose, and the company registration number. The Articles of Association establish the rules for running the company, detailing matters like the issuing of shares, annual general meetings (AGMs), and the appointment and removal of directors. You can create these documents yourself, use a template provided by Companies House, or obtain assistance from a solicitor or company formation agent:
https://www.gov.uk/government/publications/model-articles-for-private-companies-limited-by-shares
- Registering with Companies House
The next step is to register your company with Companies House, the government agency responsible for maintaining records of all companies in the UK. You will need to provide the following information:
- Company name and address
- The names and addresses of the company’s directors and shareholders
- Description of the company’s operations (SIC code)
- A copy of the Memorandum and Articles of Association
- Details of People with Significant Control (PSC)
You can register your limited company online or by postal application. Submitting your registration online is the quickest method, typically taking 24 hours. The postal application can take 8-10 days. The associated fees for online registration are £12, while postal registration costs £40:
https://www.gov.uk/register-a-company-online
- Opening a Business Bank Account
Opening a dedicated business bank account is essential for managing your company’s finances effectively. To open a business bank account, you will generally need the following documentation:
- Proof of identification (passport, driving licence, or national ID)
- Proof of address for each director (utility bill, bank statement, or council tax bill)
- Certificate of Incorporation
- Memorandum and Articles of Association
There are many options for business banking, including traditional banks and online banking platforms. Shop around and compare the fees and features to find a suitable bank.
- Applying for VAT Registration
If your company’s taxable turnover in a 12-month period exceeds the VAT registration threshold (£85,000 in 2021/22), you must register for VAT with HMRC. You can also register voluntarily if your turnover is below the threshold:
https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat
Voluntary registration may provide you with access to valuable resources and generate trust among potential clients. You can register for VAT online through the HMRC website:
https://www.gov.uk/vat-registration
- Registering with HMRC for PAYE
If your company has employees, you must also register for Pay As You Earn (PAYE) with HMRC. This system ensures that Income Tax and National Insurance Contributions (NICs) are deducted from your employees’ wages before they receive them:
https://www.gov.uk/register-employer
- Setting up a Registered Office Address
Your limited company must have a registered office address within the UK. This address will be used for official correspondence from Companies House and HMRC. The address must be a physical location, not a P.O. Box, and should be displayed on all company stationery and your website. If you run your business from home and prefer not to disclose your address, consider using a registered office address service.
- Understanding the Basics of Annual Returns and Financial Reporting
Every year, your limited company will need to submit a Confirmation Statement to Companies House to keep your company information up to date. The company must also file annual accounts, which include a balance sheet, profit and loss statement, and notes to the accounts. If your limited company is VAT-registered, you will need to submit VAT returns, typically every three months. You will also need to prepare and file a Corporation Tax return and pay any tax due within nine months and one day after the end of the company’s accounting period:
https://www.gov.uk/running-a-limited-company
- Final Thoughts
Setting up a limited company in the UK can seem like a complex undertaking, but with this guide and the relevant websites, you can systematically complete each step and establish a strong foundation for your business. Remember to plan your finances, understand your legal obligations, and seek professional advice to ensure your company operates smoothly and maintains compliance with all UK regulations.