How to register as a private limited company

The Bottom Line

To register your SaaS as a private limited company (Ltd), visit the GOV.UK website and complete the 'set up a limited company' application online. It currently costs £50, usually takes less than 24 hours to process, and legally separates your personal finances from your business risks. This structure is essential if you plan to hire staff or raise investment in the future.

Why Choose a Limited Company?

For a SaaS business, a limited company is usually the best fit. It offers limited liability, meaning if the business runs into debt or legal trouble, your personal home, car, and savings are generally protected. It also makes your business look more credible to corporate clients and is a requirement for most venture capital or angel investment.

What You Need Before You Start

Before sitting down to the online form, ensure you have the following details ready:

• A unique company name: Use the Companies House Name Availability Checker to ensure your name isn't too similar to an existing one.
• A registered office address: This is the official address for the company. It must be in the UK and will be on the public record. Many founders use a virtual office service if they don't want to display their home address.
• At least one Director: This will likely be you. You must be at least 16 years old.
• Shareholders: You need at least one shareholder (again, likely you initially). You'll need to decide how many shares to issue (e.g., 100 shares at £1 each).
• Standard Industrial Classification (SIC) codes: These tell Companies House what your business does. For most SaaS companies, the common codes are 62012 (Business and domestic software development) or 62020 (Information technology consultancy activities).

The Registration Process

1. Register for Government Gateway: If you don't have one, you’ll create a user ID for the Government Gateway via the GOV.UK registration page.
2. Complete the 'Memorandum and Articles of Association': These are the legal 'rule books' for how the company is run. If you use the online registration service, these are created automatically for you using standard templates.
3. Submit and Pay: Review your details and pay the registration fee via debit/credit card or PayPal.

What Happens Next?

Once approved, you will receive a Certificate of Incorporation. This is your 'birth certificate' for the business and contains your Company Registration Number (CRN). You will need this number to set up business bank accounts and sign legal contracts.

Relatable Tip: Don't get bogged down in complex share structures at the start. If you are the sole founder, issuing 100 shares at £1 each is a standard way to begin. You can always issue more or change the structure later as the business grows.