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How to start a company in United Kingdom

The UK offers one of the fastest and cheapest company formation processes globally — most companies are registered with Companies House in under 24 hours.

Formation time
Same day – 1 business day
Typical cost
GBP 12–100
Currency
GBP

Legal structures

Private Limited Company
Ltd
By far the most common structure — separate legal entity, limited liability, easy to set up.
Min. capital
No minimum (£1 share capital is typical)
Liability
Limited
Limited Liability Partnership
LLP
Used by professional services firms — limited liability with partnership-style tax treatment.
Min. capital
No minimum
Liability
Limited
Sole Trader
Sole Trader
Simplest form for freelancers. No legal separation, personal liability for debts.
Min. capital
No minimum
Liability
Unlimited
Public Limited Company
PLC
For companies intending to list on a stock exchange — higher compliance burden.
Min. capital
£50,000 minimum share capital
Liability
Limited

Formation steps

  1. 1

    Choose a company name

    Same day

    Check availability on the Companies House register. Certain words are restricted.

  2. 2

    Appoint directors and a company secretary

    Same day

    At least one director required (aged 16+). A secretary is optional for private companies.

  3. 3

    Assign share capital and shareholders

    Same day

    Private companies typically issue 1–100 shares at £1 each to founders.

  4. 4

    Prepare memorandum and articles of association

    Same day

    Standard model articles are available from Companies House — customisation is optional.

  5. 5

    Register with Companies House

    Same day – 24 hours

    File form IN01 online (£12) or by post (£100). Incorporation is usually confirmed within 24 hours.

  6. 6

    Register for Corporation Tax with HMRC

    Same day online

    Must be done within 3 months of starting to trade.

Required documents

  • Memorandum of Association
  • Articles of Association
  • Form IN01 (application to register)
  • Proof of ID for all directors and shareholders
  • Registered office address in the UK

Tax basics

Corporate tax rate
25% (19% small profits rate for profits under £50,000)
VAT / sales tax
20% VAT (standard rate); 5% and 0% reduced rates apply to certain goods
Registration threshold
VAT registration compulsory when taxable turnover exceeds £90,000 (2024/25)
Reporting cadence
Corporation Tax: annual; VAT: quarterly (most common) or monthly

Common pitfalls

Missing the Confirmation Statement deadline (annual, £13 filing fee) — late filing can lead to company strike-off.

Not registering for Corporation Tax within 3 months of trading — HMRC penalties apply.

Mixing personal and company funds — director's loan account rules (s.455 tax charge) catch many founders.

Forgetting to file dormant company accounts even when not trading — Companies House still requires filings.

Ready to start invoicing?

Once your company is registered, Zuupr handles invoicing, payments, and business intelligence — all in one place.

Last reviewed 2026-04-05. This guide is for information only and is not legal or tax advice. Verify specifics with a local professional before acting.