What incorporation actually does
Registering with Companies House creates your company as a legal entity. Once it is on the register you receive a certificate of incorporation with your company number and the date it was formed.
Most people register online and the company is usually set up within 24 hours. You can register by post, but it is slower and costs more.
What you need before you start
- A company name that is not already taken and does not use restricted or sensitive words without permission.
- A registered office address in the UK. This is public, so many founders use an accountant's or a formation agent's address.
- At least one director who is responsible for running the company and meeting its legal duties.
- At least one shareholder, who can be the same person as the director, plus a statement of capital describing the shares.
- People with significant control (PSC) details, naming anyone who owns or controls more than 25 percent of shares or voting rights.
- A SIC code that describes what the company does.
- A memorandum and articles of association, the rules for running the company. Most new companies use the standard model articles.
The fee
The online incorporation fee is modest and is paid to Companies House at the point of registration. Postal registration costs more, and same day services cost more again. Confirm the current fee on GOV.UK, since it was increased in recent years and can change.
Identity verification
Under the Economic Crime and Corporate Transparency Act, Companies House has been introducing mandatory identity verification for directors, people with significant control, and those who file on a company's behalf. If you are incorporating now, check the current GOV.UK guidance so you know whether you need to verify your identity as part of, or shortly after, registration. This is a recent and evolving change, so do not rely on older walkthroughs.
What to do straight after registering
- Register for Corporation Tax with HMRC. You usually need to do this within three months of starting to do business. If you register online, this is often handled at the same time as incorporation.
- Set up a business bank account in the company's name, since the company's money must be kept separate from your personal money.
- Keep statutory records, including registers of directors, shareholders, and people with significant control.
- Diary your filing dates. You will file annual accounts and a confirmation statement with Companies House, and a Corporation Tax return with HMRC. Missing these leads to penalties.
Do you need a formation agent
You can register directly with Companies House yourself. Formation agents and accountants offer to do it for you, often bundling a registered office address and reminders. For a straightforward company you do not need one, but many founders value having an accountant involved from day one to set up the tax registrations correctly.