- Setting up a limited company is easier when you follow a clear checklist and prepare all details in advance.
- You must provide specific documents and personal information to Companies House to register successfully.
- Completing post-incorporation compliance tasks early helps you avoid penalties and trade with confidence.
In need of a checklist for setting up a limited company? If you want to move quickly and get everything filed properly, we can help you set up your limited company today with expert support from start to finish.
Knowing how to set up a limited company in the UK involves more than choosing a name and submitting a form. You need the right documents, accurate director and shareholder details, and a clear plan for what to do immediately after incorporation. Missing a step can lead to rejected applications, HMRC penalties, or extra admin when you start trading.
This step-by-step checklist shows you exactly what to prepare before registration, what Companies House requires during formation, and what compliance tasks you must complete after your company is formed so you can start trading with confidence.
1. Decide if a limited company is right for you
A limited company is a separate legal entity, which means the business is responsible for its own debts and liabilities.
This structure suits you if you want:
- Limited personal liability
- Greater credibility with clients, suppliers, and lenders
- Flexibility around ownership and future growth
However, a limited company comes with additional responsibilities, including annual accounts and confirmation statements. If you are still weighing up your options, compare structures in our guide to sole trader vs limited company.
2. Choose your company name
Your company name must be unique and comply with Companies House rules.
Before you register, make sure the name:
- Is not identical or too similar to an existing company
- Does not include restricted or sensitive terms
- Ends with “Limited” or “Ltd”
A flexible, professional name is easier to use long term, especially if your services expand beyond your initial offering.
3. Choose your registered office address
Every limited company must have a registered office address in the UK. This address appears on the public register and is where official correspondence is sent.
You can use:
- Your home address
- A business premises
- A professional registered office service
Many directors prefer a professional address for privacy. You can explore your options in our guide to types of company address explained.
4. Appoint at least one director
You must appoint at least one director to manage the company.
Directors must:
- Be at least 16 years old
- Not be disqualified from acting as a director
- Accept legal responsibility for running the company
Directors are responsible for filings with Companies House and HMRC, including accounts and tax returns. You can appoint additional directors later if the business grows.
Setting up a limited company is usually quick, but small mistakes can delay approval or cause compliance issues later. Preparing your details in advance and following a clear checklist helps you register correctly the first time and start trading with confidence.
5. Decide your shareholders and share structure
Every limited company must have at least one shareholder.
Most new companies keep things simple by:
- Issuing one ordinary share
- Assigning it to the founder
Larger or investment-backed companies may issue multiple shares with different rights. Ownership and voting power depend on how shares are structured.
6. Identify people with significant control (PSC)
Companies House requires you to record anyone with significant control over the company.
A PSC is usually someone who:
- Owns more than 25 percent of shares or voting rights
- Can appoint or remove the majority of directors
- Exercises significant influence over the company
For one-person companies, the director, shareholder, and PSC are often the same individual.
7. Prepare your company documents
You must have two legal documents ready before registration.
Memorandum of association
This confirms that the initial shareholders agree to form the company. If you register online, Companies House generates this automatically.
Articles of association
These set the rules for how the company operates, including decision making and share rights. Most businesses use standard model articles unless they need a bespoke structure.
8. Choose your SIC code
A SIC code describes what your company does.
You must select at least one code during registration. If your activities change later, you can update this when you file your next confirmation statement.
9. Submit your application to Companies House
Once all details are ready, you can submit your application online, by post, or through a formation agent.
You will need to provide:
- Company name and registered office address
- Director, shareholder, and PSC details
- SIC code
- Company documents
Most online applications are approved within 24 hours. You can submit directly through Companies House on GOV.UK or use a formation service to reduce errors.
10. Receive your certificate of incorporation
If your application is successful, Companies House issues a certificate of incorporation.
This confirms:
- Your company legally exists
- The date of incorporation
- Your company number
You will need this document to open a bank account and complete tax registrations.
Post-incorporation compliance checklist for limited companies
Once incorporated, there are mandatory steps you must complete before and after you start trading.
Register for Corporation Tax
You must register for Corporation Tax within three months of starting to trade.
Trading includes:
- Advertising your services
- Issuing invoices
- Receiving income
HMRC explains the registration process on GOV.UK . You can also follow our step-by-step guide on how to pay Corporation Tax for your small business.
Open a business bank account
A limited company must have its own bank account.
This keeps finances separate and simplifies bookkeeping. Most banks will ask for:
- Your certificate of incorporation
- Proof of identity for directors
- Business details
Opening an account early makes it easier to manage payments and records from day one.
Set up your statutory registers and issue share certificates
You must maintain statutory registers, including:
- Register of members
- Register of directors
- Register of PSCs
You must also issue share certificates to shareholders. These records must be kept accurate and up to date.
File your first confirmation statement
Your confirmation statement is due every 12 months and confirms that your company details are correct.
If information has changed, you must update it before filing. Missing this deadline can result in penalties or strike-off action. Learn more in our guide on what to do after forming a company.
Understand your accounting and record-keeping obligations
You must keep accurate financial records from the moment your company starts trading.
Good bookkeeping:
- Supports accurate tax returns
- Helps you meet filing deadlines
- Reduces the risk of HMRC penalties
If you are budgeting for support, our guide to accountant cost for limited companies explains typical fees.
Consider VAT registration
You must register for VAT if your taxable turnover exceeds the threshold in a rolling 12-month period.
Some companies register voluntarily to reclaim VAT on expenses or improve credibility. You can learn more in our guide on does a limited company have to be VAT registered in the UK.
Set up PAYE if you pay yourself or employees
If you plan to pay a salary, you must register as an employer and set up PAYE.
This allows you to:
- Deduct Income Tax and National Insurance
- Submit payroll information to HMRC
You can register directly with HMRC on GOV.UK or use our PAYE registration service.
Documents required to set up a limited company
Having everything ready in advance speeds up registration and avoids delays.
You will need:
- Memorandum of association
- Articles of association
- Statement of capital
- Director details
- Shareholder details
- PSC information
A full breakdown is available in our guide to business registration documents in the UK.
Costs and timeline for setting up a limited company
How much does it cost?
Costs depend on how you register and which services you choose.
Common costs include:
- Companies House registration fee
- Registered office or service address
- Optional PAYE or VAT registration
For a full breakdown, see how much it costs to register a company in the UK.
How long does it take?
Most online applications follow this timeline:
- Day 1: Submit application
- Day 1 or 2: Receive certificate of incorporation
- First weeks: Complete post-incorporation tasks
- Within three months of trading: Register for Corporation Tax
If speed matters, our express company registration service can help.
How LTD Companies helps you set up your limited company correctly
Setting up a limited company is only the first step. Staying compliant and organised from day one saves time, money, and stress later.
LTD Companies supports you with:
- Accurate company formation
- Registered office and director address services
- PAYE and VAT registration
- Ongoing accounting and compliance support
With the right setup and expert guidance, you can focus on growing your business while staying fully compliant from the start.
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FAQs on checklist for setting up a limited company
What are the benefits of setting up a limited company?
Setting up a limited company protects your personal finances because the business is a separate legal entity. It can also improve credibility with clients and suppliers, make tax planning more flexible as profits grow, and make it easier to bring in shareholders or investors in the future.
What are the differences between a sole trader and a limited company?
The main difference is legal structure. A sole trader and the business are the same entity, which means personal assets are not protected. A limited company is separate, offering limited liability but with additional reporting duties. A full comparison is available in our guide to sole trader vs limited company.
What are the ongoing costs of running a limited company?
Ongoing costs usually include accounting support, annual confirmation statements, and Corporation Tax filings. You may also pay for payroll, VAT returns, or a registered office address. Costs vary by business size and complexity. Our guide on accountant cost for limited companies explains typical expenses in more detail.
Should I use Companies House or a formation agent?
You can register directly with Companies House, but many founders use a formation agent to avoid mistakes and save time. A formation agent checks details, prepares documents correctly, and submits everything in one go. Using LTD Companies also gives access to optional services like registered office addresses and PAYE setup, which are not included when filing alone.
Can I set up a limited company with a bank account included?
Some formation services help you prepare everything needed for a business bank account alongside incorporation. While banks make the final approval, having accurate documents ready from the start can speed up the process and help you begin trading sooner.
How do limited company setup services compare?
Setup services vary in what they include. Some only handle basic registration, while others provide compliance support, address services, and guidance after incorporation. When comparing providers, look for transparent pricing, UK-based support, and help beyond day one. Our company registration service is designed to cover formation and next steps.
How long does it take to register a limited company?
Most online applications are approved by Companies House within 24 hours. The full setup may take slightly longer if you include bank account opening or PAYE and VAT registration. Using an express company registration service can help ensure everything is submitted correctly without delays.
450,000
businesses worldwide.
from 4,100+ reviews.
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