Setting up a Limited Company

A private limited company (LTD) gives you limited liability and a professional structure. Follow these steps.

1. 1. Choose a company name

   Check availability on the Companies House name checker. Avoid sensitive words.

2. 2. Decide on directors and shareholders

   You need at least one director (aged 16+). A sole director can also be the only shareholder.

3. 3. Prepare a memorandum of association

   A legal statement signed by all initial shareholders agreeing to form the company.

4. 4. Draft articles of association

   Rules about running the company. You can use model articles provided by Companies House.

5. 5. Choose a registered office address

   Must be a physical UK address. This will be on the public register.

6. 6. Choose a SIC code

   Standard Industrial Classification code that describes your business activity.

7. 7. Register with Companies House

   Apply online (£12) or by post (£40). You'll get a certificate of incorporation.

8. 8. Register for Corporation Tax with HMRC

   Must be done within 3 months of starting business. HMRC will send your UTR.

9. 9. Set up a business bank account

   You'll need your certificate of incorporation and company details.

10. 10. Register for VAT (if needed)

    Mandatory if turnover exceeds £90,000. Voluntary registration is possible below this.