Starting a limited company: a plain-English UK guide
Setting up a UK private limited company means registering it with Companies House, with a name, a registered office address, at least one director and at least one shareholder. Then you set up Corporation Tax, keep records and file accounts every year. These guides take you through each step in order, with links to the official GOV.UK guidance.
Last updated · General guidance, not legal or tax advice
1. Before you form the company
Decide whether a company suits you, and gather what you need to register one.
- Should I be a sole trader or set up a limited company? — The practical differences between working as a sole trader and running a limited company: legal separation, admin, tax, privacy and when to get advice.
- How do I set up a limited company in the UK? — Step-by-step guide to registering a UK private limited company: name, registered office, directors, shareholders, PSCs, SIC codes, identity verification and what happens next.
- What information do I need before I register a limited company? — A checklist of the information you need before registering a UK limited company: name, address, director and shareholder details, PSCs, SIC code and identity verification.
- What is a registered office address and can I use my home address? — What a registered office address is, why it is public, what post goes there, how it differs from a trading address or virtual office, and whether you can use your home.
- How many directors and shareholders does a limited company need? — The minimum number of directors and shareholders for a UK private limited company, whether one person can be both, and whether you need a company secretary.
2. Ownership and control
Who runs the company, who owns it, and how shares and control work.
- What is a company director and what are a director's responsibilities? — What a limited company director does, their legal duties, records and filings they are responsible for, conflicts of interest, and what an accountant can and cannot take over.
- What is a shareholder and what rights do shareholders have? — What a shareholder is in a UK limited company, the rights shares usually carry (votes, dividends, capital), how resolutions work and how shares are transferred.
- What is the difference between a director and a shareholder? — The difference between a company director and a shareholder: management versus ownership, how one person can be both, and examples of common small-company set-ups.
- What is a PSC and who counts as a Person with Significant Control? — Who counts as a person with significant control (PSC) of a UK company, the 25% tests and other conditions, what you report to Companies House, with simple examples.
- How do shares work in a limited company? — How shares work in a UK limited company: number and nominal value, ordinary shares, voting, dividend and capital rights, issuing and transferring shares, and share classes.
3. Tax and paying yourself
The taxes a company may pay, when to register, payroll and taking money out.
- What taxes does a limited company have to pay? — An overview of the taxes a UK limited company may pay — Corporation Tax, VAT, PAYE and National Insurance — and the personal taxes directors and shareholders may face.
- When does a new limited company need to register for Corporation Tax? — When a new UK limited company must register for Corporation Tax, what counts as starting business, dormant companies, your UTR and a high-level look at deadlines.
- When does a limited company need to register for VAT? — When a UK limited company must register for VAT, how the taxable turnover test works, voluntary registration pros and cons, and why to check the current threshold on GOV.UK.
- Does a company director need to run payroll? — When a limited company needs to register as an employer and run PAYE, how director salaries go through payroll, employing staff and why setting up payroll early matters.
- How can a company director pay themselves? — The main ways a UK limited company director can take money out — salary, dividends, expenses and director's loans — with the rules that apply to each.
4. Running the company
Records, annual filings, banking, accountants and your first 90 days.
- What records and bookkeeping does a limited company need to keep? — The accounting and statutory records a UK limited company must keep, how long to keep them, and practical bookkeeping tips for new companies.
- What does a limited company have to file each year? — What a UK limited company files each year with Companies House and HMRC — annual accounts, confirmation statement, Company Tax Return, Corporation Tax — plus payroll and VAT.
- Does a limited company need a separate business bank account? — Why a UK limited company should have its own bank account, keeping company and personal money separate, what banks usually ask for, and how addresses fit in.
- Does a limited company need an accountant? — Whether a UK limited company legally needs an accountant, what directors can do themselves, and where an accountant adds value: accounts, tax, VAT, payroll and advice.
- I've registered my limited company — what do I do next? — A practical first-30-days and first-90-days checklist after registering a UK limited company: bank, bookkeeping, Corporation Tax, PAYE, VAT, invoices, post and key dates.