How to Register a UK Business in 2026: Costs, Steps and Privacy Pitfalls to Avoid

Starting a business in the UK is relatively straightforward. Registering a private limited company can be completed online, often without an accountant or formation agent.

The registration form, however, is only one part of the process.

Before incorporating, you need to decide whether a limited company is the right structure, who will own it, how its shares will be divided, which addresses will appear publicly and who will be responsible for meeting its legal obligations.

After registration, you may need to set up Corporation Tax, payroll, VAT, bookkeeping, insurance, data protection procedures and a business bank account. You will also need to remember that a limited company must continue filing information even if it makes very little money or never begins trading.

Mistakes made during incorporation can remain visible for years. A home address entered in the wrong field may appear on the public register. An unsuitable share structure can create ownership complications. Missed accounts can lead to automatic penalties, while ignoring official letters can eventually put the company at risk of being struck off.

This guide explains the complete process, including the less obvious decisions that new business owners should make before submitting their application. You can also track your progress using our interactive UK Business Launch & Digital Presence Checklist alongside this guide, and monitor live incorporation rates on our UK Company Formation Reports.

At a glance: what does it cost to register a UK company?

As of July 2026, registering a private company online directly with Companies House costs £100. A paper application costs £124, while same-day digital incorporation through compatible software costs £156.

The government fee is not necessarily the full cost of starting a business. A realistic first-year budget may also include an address service, domain, professional email, accounting software, insurance and professional advice.

Private services set their own prices, so the non-government estimates above are indicative rather than fixed.

1. Decide whether you need a limited company

"Registering a business" can mean different things. Not every new business needs to be incorporated at Companies House.

The main structures used by small UK businesses are:

Sole trader

A sole trader operates a business personally rather than through a separate company.

It is usually the simplest structure to begin with. There is no Companies House incorporation fee, and you can generally start trading immediately. You normally need to register for Self Assessment when your gross trading income exceeds the relevant trading allowance, currently £1,000 in a tax year.

The main drawback is that the business and its owner are not legally separate. The owner is personally responsible for the business's debts and contractual obligations.

Private company limited by shares

A private limited company is a separate legal entity. It can enter contracts, own property, employ people, receive income and incur debts in its own name.

Its shareholders' liability is normally limited to the amount unpaid on their shares. However, limited liability does not protect a director from every possible consequence. Directors may still become personally responsible in circumstances involving personal guarantees, fraud, unlawful conduct or serious breaches of duty.

This structure is commonly used by commercial businesses that want to:

• separate business finances from personal finances;
• build a business that may later be sold or transferred;
• introduce co-founders or investors;
• create a more formal commercial identity;
• retain profits within the company;
• employ staff or enter larger contracts.

A company also brings continuing reporting, accounting and administrative responsibilities.

Partnership

In an ordinary partnership, two or more people operate a business together. The partners generally share responsibility for its debts and obligations.

A written partnership agreement is strongly advisable, even where the partners are relatives or long-standing friends.

Limited liability partnership

A limited liability partnership, or LLP, is a separate legal entity that combines elements of a company and a partnership. It is often used by professional practices and businesses whose members want flexibility in how profits are distributed.

An LLP has at least two designated members and must be registered with Companies House.

Which structure should you choose?

A sole trader structure may suit a person testing a small, low-risk service with limited costs. A limited company may be more appropriate where there are meaningful commercial risks, employees, co-founders, external investment or plans to build a transferable business.

Tax should not be the only consideration. Administration, liability, ownership, credibility and long-term plans are equally important.

2. Understand what a limited company actually changes

Incorporating a company does not simply give an existing sole-trader business a new name. It creates a separate legal person.

Money earned by the company belongs to the company. Business owners should not treat the company bank account as an extension of their personal account.

A director can usually receive money through legitimate routes such as:

• salary processed through payroll;
• repayment of business expenses;
• dividends paid from available distributable profits;
• repayment of money previously lent to the company;
• a properly recorded director's loan.

Each method has different accounting and tax consequences.

The company must maintain adequate records showing what money came in, what was spent and why payments were made. Personal and business transactions should be kept separate from the beginning.

3. Choose your company name

Before registering, search the Companies House register and check sensitive word rules using our Business Name Checker.

The name must not be the same as an existing registered company name. Companies House may also reject names containing certain sensitive words or expressions unless supporting permission is provided.

A name can technically be available at Companies House but still create a legal or commercial problem.

Before committing to it, check:

1. Companies House availability: Is an identical or effectively identical name already registered?
2. UK trademark records: Could the name infringe an existing trademark?
3. Domain availability: Can you secure an appropriate .co.uk, .com or other relevant domain?
4. Social media usernames: Are recognisable versions of the name available?
5. Search results: Is the name already strongly associated with another organisation?
6. Pronunciation and spelling: Can customers hear it once and type it correctly?
7. Future use: Will the name still work if the business expands beyond its first service or location?

Registering a company name does not automatically give you trademark protection. Equally, purchasing a domain does not grant the right to use a name that infringes somebody else's rights.

Should you include your location or service?

A descriptive name can help customers understand the business, but an overly narrow one can become restrictive.

For example, a company called "Leeds Domestic Bathroom Repairs Ltd" may later feel unsuitable if it begins handling commercial projects across the UK.

Your registered company name and public-facing trading name do not always have to be identical, but your website and business documents should make the legal entity behind the trading name clear.

4. Decide where the company will be registered

Companies are registered in one of the UK's legal jurisdictions:

• England and Wales;
• Wales;
• Scotland;
• Northern Ireland.

A company's registered office must remain in the jurisdiction in which it was incorporated. A Scottish company must therefore maintain a registered office in Scotland, while a company registered in England and Wales must maintain one in England or Wales.

This is particularly important when buying an address service. A London address cannot be used as the registered office of a Scottish company, and an Edinburgh address cannot be used for a company incorporated in England and Wales.

5. Understand the different company addresses

Several different addresses may be required during registration. They do not all serve the same purpose.

Registered office address

The registered office is the company's official legal address. Companies House, HMRC, courts and other public authorities may send formal correspondence there.

It must be:

• a physical UK address;
• situated in the company's jurisdiction;
• an "appropriate address" where documents are expected to reach someone acting for the company;
• capable of receiving deliveries that can be acknowledged.

Companies House introduced the appropriate-address requirement in March 2024. A company should not use an address where official mail is likely to be ignored, discarded or inaccessible.

The registered office appears on the public Companies House register.

Director's residential address

Companies House requires a director's usual residential address.

This is generally kept on the private part of the register and is not normally visible to the public. It may still be shared with certain public authorities and credit reference agencies where permitted.

Director's service address

The service address is the public correspondence address for the director.

It can be:

• the company's registered office;
• an accountant's address, with permission;
• a suitable address-service provider;
• another address at which the director can reliably receive documents.

If a director enters their home address as their service address, it will appear publicly.

Person with significant control service address

A person with significant control, or PSC, also has a public service address. Their residential address is normally protected, but the service address appears on the register.

Business or trading address

A trading address is the location from which the business operates or receives routine commercial correspondence.

It may be the same as the registered office, but it does not have to be.

A business working from home might use:

• a registered office service for legal correspondence;
• a virtual business address for customer mail;
• its real home address privately for banking, insurance and identity checks.

Registered email address

Companies must provide Companies House with a registered email address.

This email is used for official communication and is not displayed on the public register. It should be an inbox that the directors check regularly, rather than an employee's personal account or an address likely to stop working.

6. The Companies House home-address privacy trap

One of the most consequential registration mistakes is using a home address in a public field without understanding the implications.

A home address entered as the registered office, director's service address, company secretary's service address, or PSC's service address can become publicly searchable through Companies House.

This information may be viewed by customers, competitors, data brokers, sales organisations and members of the public. Companies House also provides access to historical filings, meaning that simply changing the address later does not remove its earlier appearance.

Can a home address be removed later?

In some circumstances, you can apply to Companies House to suppress a home address from publicly available documents.

This is not the same as simply editing the company's current address. It involves a formal application and may require a fee. Eligibility and the way replacement information is displayed depend on the circumstances.

The safest approach is to decide on an appropriate non-residential public address before incorporation.

What should an address service include?

Address-service packages vary. Before buying one, check whether it covers:

• the company's registered office;
• individual director service addresses;
• PSC service addresses;
• general business correspondence;
• HMRC mail;
• Companies House authentication codes;
• scanning or forwarding;
• parcel delivery;
• use on the website and invoices;
• renewal reminders;
• continued access if you stop using the provider.

A cheap registered-office package may only accept statutory mail. It may not allow the address to be advertised as your trading address or used for bank correspondence.

7. Identify the directors

A private company must have at least one director, and at least one director must be a natural person rather than another company.

A director must normally be at least 16 years old and must not be disqualified from acting as a director.

Directors are legally responsible for the company. Hiring an accountant does not transfer all responsibility to the accountant.

Directors must take reasonable steps to ensure that the company:

• keeps proper records;
• files accurate accounts;
• submits confirmation statements;
• pays taxes when due;
• reports important company changes;
• follows relevant laws;
• acts in the company's interests;
• does not continue trading irresponsibly when insolvent.

A company secretary is not normally required for a private limited company, although one can be appointed.

8. Complete Companies House identity verification

Identity verification became a legal requirement from 18 November 2025, with the requirements being introduced through a 12-month transition period.

New directors and PSCs may need to verify their identity and use their Companies House personal code when being added to company records. Existing directors and PSCs must comply by the dates applying to their particular roles and company.

Verification can generally be completed:

• directly through GOV.UK One Login; or
• through an Authorised Corporate Service Provider, known as an ACSP.

After successful verification, the individual receives a unique Companies House personal code. That code belongs to the individual, not to one particular company.

A director or PSC connected with several companies may need to use the same personal code to link their verified identity to each relevant role. The code should be stored securely and not published or casually shared.

Companies should check the current instructions for every director and PSC rather than assuming that incorporation alone has completed all identity-verification requirements.

9. Identify the shareholders

A company limited by shares must have at least one shareholder. The shareholder can also be the sole director.

Shareholders own the company through their shares. Directors manage the company. In a one-person company, the same person often performs both roles, but they remain legally distinct roles.

Before registering, decide:

• who will own the company;
• how many shares each person will receive;
• the nominal value of each share;
• whether all shares carry the same rights;
• how future decisions will be made;
• what happens if an owner leaves;
• whether more shares may be issued later.

How many shares should a new company issue?

There is no universal number that is best for every company.

A sole-owner company may begin with one ordinary share with a nominal value of £1. That can be perfectly adequate.

Some businesses issue 100 ordinary shares because percentages are easy to understand. For example, 60 shares and 40 shares represent a 60/40 ownership split.

However, issuing 100 shares at £1 each means the shareholder agrees to contribute up to £100 of nominal share capital. The amount is small, but it demonstrates why share numbers and nominal values should not be chosen carelessly.

Avoid issuing thousands or millions of shares simply because a template or online comment suggests doing so. This rarely provides a meaningful benefit to a simple owner-managed business.

Multiple founders need more than a percentage split

Where two or more people will own the company, consider preparing a shareholders' agreement.

It can address:

• voting and reserved decisions;
• director appointments;
• dividend policy;
• intellectual property ownership;
• what happens when someone stops working in the business;
• selling or transferring shares;
• death, illness or incapacity;
• deadlock resolution;
• confidentiality;
• restrictions on competing businesses;
• methods for valuing shares.

A 50/50 company may appear fair, but it can become difficult to manage if the owners disagree and there is no deadlock procedure.

10. Identify people with significant control

A person with significant control is someone who ultimately owns or controls the company.

A person will commonly be a PSC where they:

• hold more than 25% of the shares;
• hold more than 25% of the voting rights;
• have the right to appoint or remove a majority of the board;
• otherwise exercise significant influence or control.

In a simple one-person company, the sole shareholder will usually be the PSC.

PSC information must be kept accurate and updated when ownership or control changes. It is not enough to wait until the next annual accounts are prepared.

11. Choose suitable SIC codes

A Standard Industrial Classification code, usually called a SIC code, describes the nature of the company's activities.

You can select more than one code where necessary, but the choices should reflect what the company actually does.

Common mistakes include:

• choosing an overly broad code;
• selecting a code based on what the company might do years later;
• copying a competitor's code without checking it;
• confusing an online-retail code with the code for the underlying service;
• selecting several unrelated codes without a genuine reason.

SIC codes can be updated through a confirmation statement, so an imperfect choice is not normally permanent. Nevertheless, accurate codes make the company's public record clearer to banks, insurers, suppliers and potential customers.

12. Choose the articles of association

The articles of association are the company's internal rulebook.

Many straightforward private companies use the standard model articles supplied under company law. These cover matters such as director decisions, shareholder voting and share transfers.

Model articles may be sufficient for a simple company with one owner and one class of ordinary shares.

Bespoke articles may be appropriate where there are:

• several founders;
• different share classes;
• external investors;
• unusual voting arrangements;
• restrictions on share transfers;
• industry-specific governance requirements.

Do not adopt a complicated share structure without understanding how the articles, shareholders' agreement and Companies House filings interact.

13. Prepare the statement of capital

The statement of capital records the shares issued by the company.

It includes information such as:

• the number of shares;
• their class;
• their nominal value;
• the rights attached to them;
• the amount paid or unpaid.

The nominal value is not the same as the company's market value. A business with one £1 share can later be worth hundreds of thousands of pounds.

Make sure the share allocation entered during registration reflects the ownership arrangement the founders actually agreed.

Correcting an incorporation mistake may require additional filings, legal documents and accounting work.

14. Confirm the company's lawful purpose

When registering, the subscribers confirm that they wish to form the company and agree to become members. The application also includes statements concerning the company's lawful purpose and compliance with registration requirements.

The company must not be formed or operated for an unlawful purpose.

Certain activities also require separate licences, permissions or regulatory registration. Incorporation does not authorise the company to carry out every kind of business.

Examples of regulated or licensed areas may include:

• financial services;
• legal services;
• healthcare;
• childcare;
• alcohol sales;
• food preparation;
• private security;
• gambling;
• transport;
• waste handling;
• recruitment in certain sectors;
• property and tenancy-related activities.

Check sector-specific requirements before accepting customers or signing contracts.

15. Submit the incorporation application

A standard private company limited by shares can normally be registered through the official Companies House service.

You will generally need:

• the proposed company name;
• the registered jurisdiction;
• the registered office;
• the registered email address;
• directors' details;
• shareholders' details;
• PSC information;
• share structure;
• SIC codes;
• articles of association;
• identity-verification information where required;
• a payment card.

Online incorporation currently costs £100. Companies House states that companies registered through the standard service are usually set up for Corporation Tax at the same time unless they are dormant, although additional HMRC steps may still be required when the company starts trading.

Formation agents and accountants can submit the application on your behalf, but their package fee is separate from the Companies House charge.

Avoid unofficial-looking registration websites

Private formation websites are allowed to offer incorporation services, but they are not Companies House.

Some packages include useful extras. Others bundle in address services, mail forwarding, bank referrals or subscriptions that the buyer did not realise would renew.

Before paying, check:

• whether the Companies House fee is included;
• which services renew annually;
• whether cancellation is required;
• whether the registered office is included;
• whether director addresses are separately charged;
• who controls the account and authentication credentials;
• whether you will receive all original company documents.

16. Save your incorporation documents

Once the company is accepted, retain copies of:

• the certificate of incorporation;
• company number;
• memorandum of association;
• articles of association;
• statement of capital;
• initial shareholder information;
• director and PSC information;
• Companies House personal codes;
• Companies House authentication code;
• Corporation Tax UTR when it arrives;
• Government Gateway and GOV.UK One Login details;
• share certificates;
• board and shareholder resolutions.

The certificate of incorporation confirms that the company legally exists. It normally shows the company name, number and incorporation date.

The Companies House authentication code is particularly important. It acts like a filing password for the company and is normally posted to the registered office. Store it securely and change it if someone who should no longer have access knows the code.

Do not confuse the company authentication code with an individual's identity-verification personal code.

17. Create the company's statutory records

Companies have legal record-keeping responsibilities beyond retaining the certificate of incorporation.

Depending on the company, records may include:

• directors;
• members or shareholders;
• share allotments and transfers;
• PSC information;
• resolutions and meeting decisions;
• charges over company assets;
• accounting records;
• supporting invoices and receipts.

Issue share certificates to the shareholders and record changes in ownership properly. Transferring money between founders does not, by itself, legally transfer shares.

18. Open a business bank account

Although incorporation and banking are separate processes, a limited company should normally use a bank account in its own legal name.

Keeping company and personal money separate makes it easier to:

• maintain accurate accounts;
• demonstrate which expenses belong to the business;
• manage cash flow;
• prepare tax returns;
• apply for finance;
• provide records during an HMRC review;
• avoid an overdrawn or confused director's loan account.

Banks and payment providers may ask for:

• certificate of incorporation;
• company number;
• director identification;
• proof of residential address;
• trading address;
• website or business plan;
• expected turnover;
• source of funds;
• information about customers and suppliers;
• PSC and shareholder details.

A virtual address may be accepted as the company's registered office but not as evidence of the director's personal residential address.

19. Set up bookkeeping from the first transaction

Do not wait until the first tax deadline to organise the company's records.

From the beginning, record:

• sales invoices;
• customer payments;
• supplier bills;
• receipts;
• subscriptions;
• equipment purchases;
• mileage and travel;
• payroll;
• VAT where applicable;
• director expenses;
• money introduced by directors;
• dividends;
• loans;
• refunds;
• payment-processing fees.

A receipt does not automatically prove that an expense is allowable. The records should also show its business purpose.

Cloud accounting software can save time, but it does not replace accounting judgement. Incorrect transactions can still be categorised neatly.

Consider appointing an accountant early

An accountant can help establish:

• the accounting year-end;
• payroll;
• director remuneration;
• dividend procedures;
• VAT registration;
• allowable expenses;
• bookkeeping categories;
• Corporation Tax planning;
• annual accounts;
• the Company Tax Return.

Seeking advice before money begins moving through the company is often easier than correcting a year of unclear transactions later.

20. Register for Corporation Tax and tell HMRC when trading begins

Companies House and HMRC are separate organisations, even though the online incorporation journey may connect parts of the process.

A company becomes active for Corporation Tax when it begins carrying on business or receiving relevant income.

HMRC states that a company must notify it within three months of starting its tax accounting period where the company is active and within the charge to Corporation Tax.

Activities that may indicate trading has begun can include:

• buying and selling goods;
• providing paid services;
• advertising in a way that amounts to starting commercial activity;
• earning interest or other income;
• employing people;
• entering commercial transactions.

HMRC will normally send the company's Unique Taxpayer Reference, or UTR, to its registered office. Ensure that official post reaches you.

What if the company is dormant?

A newly incorporated company that has not started business activity may be dormant for Corporation Tax.

Do not assume "dormant" means that the company has no responsibilities. Dormant companies generally still need to file accounts and a confirmation statement with Companies House.

If HMRC asks for a Company Tax Return, respond even where you believe the company is dormant. Tell HMRC its status rather than ignoring the notice.

21. Register for PAYE before paying salaries

If the company will pay a salary to a director or another employee, it may need to register as an employer and operate PAYE.

HMRC says employers must register before the first payday and cannot normally register more than two months before they begin paying people.

Payroll involves more than transferring a regular amount from the business bank account. The company may need to:

• calculate Income Tax;
• calculate employee and employer National Insurance;
• submit Real Time Information reports;
• issue payslips;
• keep payroll records;
• manage pension duties;
• report benefits and expenses where applicable.

A sole director paying themselves a salary is not exempt simply because they own the company. Directors are treated as employees for National Insurance purposes, subject to special calculation rules.

22. Monitor the VAT registration threshold

A company does not automatically become VAT-registered when it incorporates.

As of July 2026, a UK-established business generally has to register when its taxable turnover:

• exceeds £90,000 across the previous rolling 12 months; or
• is expected to exceed £90,000 within the next 30 days alone.

Different rules can apply to overseas businesses, Northern Ireland transactions and particular types of supply.

The test is based on a rolling 12-month period, not simply the company's financial year.

Some businesses register voluntarily below the threshold. That may be useful where customers are VAT-registered businesses and the company incurs significant recoverable VAT. It can be less attractive when selling mainly to consumers who cannot reclaim VAT.

VAT registration affects pricing, invoices, record keeping, returns and cash flow, so consider professional advice before registering voluntarily.

23. Check whether you must pay the ICO data protection fee

A company that processes personal information may need to pay an annual data protection fee to the Information Commissioner's Office unless an exemption applies.

For many micro-organisations, the current fee is £52. Larger organisations may fall into higher fee tiers.

Do not assume that every incorporated company automatically owes the fee. The requirement depends on how personal data is processed and whether an exemption applies.

Use the ICO's official self-assessment tool.

Businesses should also consider whether they need:

• a privacy notice;
• cookie controls;
• procedures for data-access requests;
• secure storage;
• retention policies;
• processor agreements;
• marketing consent records;
• a process for handling data breaches.

24. Check licences, insurance and local requirements

Companies House registration is not a substitute for operational permissions.

Depending on the business, you may need:

• employers' liability insurance;
• public liability insurance;
• professional indemnity insurance;
• product liability insurance;
• cyber insurance;
• premises insurance;
• a local authority licence;
• planning permission;
• food-business registration;
• music licences;
• alcohol licensing;
• waste-carrier registration;
• industry accreditation;
• health and safety assessments.

Employers' liability insurance is generally compulsory for companies with employees, subject to limited exemptions.

Banks, landlords and commercial clients may also require particular insurance even when it is not legally compulsory.

25. Secure the company's digital identity

A company may legally exist without a website, but most customers will judge its credibility online before making contact.

The basic digital setup should normally include:

• a suitable domain;
• professional email;
• a secure website;
• accurate contact information;
• consistent branding;
• appropriate legal pages;
• protected account access;
• reliable backups.

Register the domain early

Domain names are allocated separately from company names.

Someone can register a company without owning the matching domain, and someone can own a domain without owning the corresponding company or trademark.

Ideally, check the domain before incorporating and register the most important versions promptly.

For a UK-focused business, a .co.uk domain can communicate a clear UK presence. A .com may suit a company with international plans. Some businesses secure both and redirect one to the main website.

Avoid domains that:

• are unnecessarily long;
• contain multiple hyphens;
• rely on unusual spelling;
• resemble a well-known competitor;
• are difficult to say over the phone;
• lock the business into a narrow service or location.

The person or company that controls the registrar account effectively controls the domain. Make sure it is registered using credentials the business can access, not solely through a temporary freelancer's personal account.

Use a professional email address

An address such as hello@yourcompany.co.uk normally creates a stronger impression than a free consumer account.

Professional email also gives the business greater control when staff join or leave. Addresses can be created for functions such as:

• accounts;
• enquiries;
• support;
• bookings;
• privacy;
• individual employees.

Set up SPF, DKIM and DMARC records correctly to improve security and reduce the risk of spoofing or delivery problems.

Use multi-factor authentication and keep recovery methods under the company's control.

Set up a business telephone number

Publishing a personal mobile number may be suitable for some sole-owner businesses, but it can create privacy and work-life problems.

A virtual or VoIP number can provide:

• a local geographic number;
• call routing;
• business hours;
• voicemail;
• call queues;
• recorded greetings;
• separate work and personal communication;
• continuity when staff change.

Read the provider's terms carefully. Confirm whether you can transfer the number if you later move to another service.

26. Put the required company details on your website and documents

A limited company must disclose certain information on business communications.

Its website and relevant documents should normally display:

• the registered company name;
• the company number;
• the place of registration, such as "Registered in Scotland" or "Registered in England and Wales";
• the registered office address.

The legal company name should also appear on business letters, order forms and other relevant communications.

Where a trading name differs from the incorporated name, make the relationship clear. For example:

Example Studio is a trading name of Example Holdings Ltd, a company registered in Scotland under company number SC123456. Registered office: [address].

VAT-registered businesses must also provide the required VAT details on VAT invoices.

27. Prepare your website's legal and trust foundations

The exact requirements depend on the business, but a professional website may need:

• privacy notice;
• cookie information and controls;
• terms and conditions;
• refund or cancellation policy;
• delivery information;
• complaints procedure;
• company disclosure;
• accessibility information;
• sector-specific disclaimers.

Do not copy another business's legal pages word for word. Its processing activities, contracts and obligations may differ from yours.

A website should also make it easy for visitors to understand:

• what the company does;
• where it operates;
• how to make contact;
• who stands behind it;
• what the service costs or how quotations work;
• what happens after an enquiry;
• what evidence supports its claims.

28. Understand your annual filing obligations

Incorporation creates recurring responsibilities.

Confirmation statement

A company must review its registered information and file a confirmation statement at least once every 12 months.

The statement is due within 14 days after the end of the review period. It confirms information such as:

• registered office;
• registered email;
• directors;
• PSCs;
• SIC codes;
• shareholders;
• share capital.

As of July 2026, the fee is £50 for online filing and £110 for paper filing. The fee generally covers the relevant 12-month payment period, even where the company files more than one confirmation statement during that period.

A confirmation statement is not the same as annual accounts or a Company Tax Return.

Annual accounts

A private limited company's first accounts are normally due 21 months after incorporation.

Later annual accounts are generally due nine months after the end of the company's financial year.

Corporation Tax payment

Corporation Tax is generally due nine months and one day after the end of the relevant accounting period.

Company Tax Return

The Company Tax Return is generally due 12 months after the end of the relevant Corporation Tax accounting period.

The payment deadline comes before the tax-return deadline. Waiting until the Company Tax Return is due before calculating the tax can therefore lead to late payment.

First-year accounting complication

A company's first Companies House accounts often cover slightly more than 12 months. A Corporation Tax accounting period cannot exceed 12 months, so the company may need two Company Tax Returns for its first set of accounts.

This is a common source of confusion and a good reason to appoint an accountant early.

29. Understand late-filing penalties

Companies House applies automatic penalties when accounts are late.

For a private company, the current penalties are:

The penalty can be doubled where accounts are filed late in two successive financial years. Continued non-compliance can also result in prosecution or the company being struck off.

A filing deadline should be treated as the final legal date, not the date to begin preparing the accounts.

30. Keep Companies House information updated

Do not wait for the next confirmation statement to report every change.

Companies House may need to be informed when the company changes:

• registered office;
• directors;
• director details;
• PSC details;
• company name;
• share structure;
• accounting reference date;
• location of company records.

Changes should be filed accurately and within the applicable deadline.

The company should also update HMRC, banks, insurers, payment providers, customers and suppliers where relevant.

31. Common registration mistakes to avoid

• Using a home address publicly by accident: A residential address placed in the registered office or service-address field can become public. (Better approach: Arrange an appropriate address before incorporating and check exactly which address fields the service covers.)
• Assuming the cheapest formation package covers everything: A low headline price may exclude the Companies House fee, director address, mail forwarding or future renewals. (Better approach: Review the full first-year and renewal cost before paying.)
• Giving an accountant or agent complete control: An agent can manage filings, but the directors remain legally responsible. (Better approach: Keep copies of all filings, credentials, authentication codes and submitted accounts.)
• Issuing an arbitrary number of shares: Shares define ownership and potential liability for unpaid nominal capital. (Better approach: Use a structure that reflects the actual ownership agreement and obtain legal advice where there are several founders or investors.)
• Splitting a company 50/50 without a deadlock plan: Equal ownership can make major decisions impossible where the owners disagree. (Better approach: Use a shareholders' agreement and clear decision-making provisions.)
• Choosing inaccurate SIC codes: Random or excessively broad codes make the company record unclear. (Better approach: Select the code or codes that best describe current activities and update them if the business changes.)
• Forgetting the company is a separate legal person: Using the company account for personal spending can create tax and accounting problems. (Better approach: Keep separate accounts and record every payment to or from directors correctly.)
• Ignoring letters sent to the registered office: Important notices, UTR letters and authentication codes may be sent by post. (Better approach: Use a monitored address and open or scan statutory mail promptly.)
• Assuming a dormant company has nothing to file: Dormant companies still have Companies House obligations. (Better approach: File dormant accounts and confirmation statements on time and tell HMRC the company's status.)
• Treating the confirmation statement as the accounts: They are separate filings with different purposes and deadlines. (Better approach: Maintain a compliance calendar showing Companies House, HMRC, VAT and payroll dates separately.)
• Waiting for the VAT threshold to be assessed annually: The standard VAT test uses rolling taxable turnover. (Better approach: Review turnover every month, particularly as revenue approaches £90,000.)
• Paying a director without payroll or dividend paperwork: A bank transfer does not automatically become a valid salary or dividend. (Better approach: Decide what the payment represents and complete the correct payroll, board and accounting records.)
• Registering a company before checking trademarks and domains: Companies House approval does not confirm that the name is commercially safe. (Better approach: Check company names, trademarks, domains and online use before incorporation.)
• Losing access to the domain or company email: Businesses sometimes allow a developer, employee or agency to control essential accounts. (Better approach: Use company-owned credentials, multi-factor authentication and documented recovery methods.)

32. A realistic first-year budget

The true cost depends heavily on whether the owner performs the administrative work personally.

Minimal owner-managed setup

A very simple service business might pay for:

• £100 online incorporation;
• approximately £10 to £20 for a domain;
• approximately £50 to £100 for a basic address service;
• approximately £50 to £150 for professional email during the first year;
• approximately £120 to £300 for entry-level accounting software;
• £52 ICO fee where required.

This creates an indicative first-year setup and infrastructure cost of approximately £380 to £720, before insurance, website development or professional advice.

Professionally supported setup

A company using an accountant, more comprehensive address service, insurance, payroll and a professionally built website may spend:

• £100 incorporation;
• £100 to £300 on addresses and mail handling;
• £100 to £300 on domains and email;
• £600 to £3,000 or more on accounting and payroll support;
• £200 to £2,000 or more on insurance;
• £500 to several thousand pounds on branding and a website;
• additional legal fees for contracts or a shareholders' agreement.

The incorporation fee is therefore usually one of the smaller costs of creating a properly organised business.

33. Complete UK company registration checklist

To make it easier to track your incorporation tasks, you can use our interactive, step-by-step UK Business Launch & Digital Presence Checklist to save your progress, print a custom checklist, and read guidance on each step.

Before incorporation

• Decide whether a limited company is the right structure (compare regional splits in our Ltd vs Sole Trader Statistics).
• Check the proposed company name with our Business Name Checker.
• Search relevant trademarks.
• Secure suitable domain names.
• Decide the jurisdiction of registration.
• Arrange a registered office.
• Arrange director and PSC service addresses.
• Choose the directors.
• Verify identities where required.
• Decide who will own the shares.
• Agree the number, class and nominal value of shares.
• Identify PSCs.
• Choose SIC codes.
• Decide whether model articles are suitable.
• Prepare a shareholders' agreement where appropriate.
• Create a secure registered email address.
• Check whether the planned activity requires a licence.

During incorporation

• Enter names exactly as shown on official documents.
• Check every public address field.
• Confirm the share allocation.
• Confirm PSC information.
• Review SIC codes.
• Use an email address monitored by the company.
• Save a copy of the application.
• Pay through the official service or a clearly identified agent.

Immediately after incorporation

• Download the certificate and constitutional documents.
• Store the company number.
• Issue share certificates.
• Create statutory company records.
• Obtain and secure the authentication code.
• Store identity-verification personal codes securely.
• Watch for the UTR letter.
• Open a business bank account.
• Set up bookkeeping.
• Appoint an accountant if required.
• Record money introduced by founders correctly.
• Check insurance requirements.
• Check ICO fee obligations.
• Update contracts and invoices with the legal company details.

Before trading

• Tell HMRC when the company becomes active where required.
• Register for PAYE before the first relevant payday.
• Assess whether VAT registration is required or beneficial.
• Obtain licences and permissions.
• Create customer and supplier terms.
• Put privacy and cookie information in place.
• Set up professional email and telephone systems.
• Protect accounts with multi-factor authentication.
• Display the company's legal details on its website.

Every year

• File the confirmation statement.
• Prepare and submit annual accounts.
• Calculate and pay Corporation Tax.
• Submit the Company Tax Return.
• Renew the registered-office service.
• Renew domains and email.
• Renew insurance.
• Review the ICO fee.
• Check VAT turnover.
• Review directors, shareholders and PSC information.
• Retain accounting and company records.
• Update Companies House promptly when changes occur.

Final thoughts

Registering a private limited company is not difficult, but a rushed incorporation can create avoidable problems.

The most important decisions are often made before the application begins: whether a company is the right structure, who will own it, how decisions will be made and which addresses will become public.

Privacy deserves particular attention. Your residential address should be entered only where genuinely required, and you should understand which fields appear on the Companies House register before submitting them.

Once the company exists, treat it as a real legal entity from the first day. Separate its money, keep proper records, monitor official post and track your milestones using our Filing Deadline Checker to avoid late penalties.

The strongest business setup is not necessarily the most expensive. It is the one in which ownership is clear, private information is protected, records are organised and the company's legal and digital foundations are solid.

FAQs

How long does it take to register a UK company?

Online registrations directly with Companies House are typically processed within 24 hours, often in just a few hours if submitted on a working day. Paper applications take much longer, usually between one and four weeks.

Can a non-UK resident register a UK company?

Yes, non-UK residents can lawfully register and own a UK limited company. However, the company must maintain a physical registered office address in the UK jurisdiction of incorporation (England & Wales, Scotland, or Northern Ireland) to receive official mail.

Can I use a virtual office address for Companies House?

Yes, you can use a virtual office address as your registered office and director service address, provided the address is a physical location in the correct jurisdiction and can reliably receive official correspondence. This is a common method for protecting home privacy.

What is a dormant company and do I still need to file documents?

A dormant company is one that has no significant accounting transactions during its financial year. Even if your company is dormant and does not trade, you must still file annual accounts and a confirmation statement with Companies House to avoid penalties and keep the company active.

Do I need a business bank account for my limited company?

Yes. Since a limited company is a separate legal entity, it must not mix its funds with your personal money. A business bank account in the company's legal name is required to receive company income, pay expenses, and maintain clear statutory records.

Can I register a UK company without an accountant?

Yes, you can register a company online directly with Companies House without an accountant or formation agent. However, if your company has multiple shareholders, bespoke share classes, or complex setups, consulting an accountant early can prevent structural mistakes.