How to register your business as a limited company with Companies House

The quickest and most common way to register your business as a limited company is online through the official GOV.UK website. It costs £12 and can often be completed in under 24 hours. Before you begin, you will need a unique company name, a registered office address, and the details of at least one director and one shareholder. This registration legally creates your business as a distinct entity, giving you a Company Registration Number (CRN) and protecting your personal assets.

What is a Limited Company?

Registering as a limited company, also known as 'incorporation', makes your business a separate legal entity from you. This means the company's finances are separate from your personal ones, which is a key benefit. It limits your personal liability for any company debts to the value of your shares (often just £1), offering you significant financial protection. It can also make your business appear more professional to clients and lenders.

What you'll need before you start

Gathering all the necessary information beforehand will make the online application process much smoother. Here’s a checklist of what you’ll need:

• A unique company name: Your chosen name cannot be the same as, or too similar to, an existing company's name. You can check for availability using the Companies House company name checker.
• A registered office address: This must be a physical address in the UK and will be publicly available online. It’s where official communications will be sent. You can use your home address, but many new businesses opt for a virtual office address service for privacy.
• Director details: You need at least one director. You’ll need their full name, date of birth, nationality, occupation, service address (which can be the same as the registered office), and residential address (which is not shown on the public record).
• Shareholder details: You need at least one shareholder (this can be the same person as the director). You must decide on the number of shares they will have and the value of each share. For most small businesses, a simple structure like one person owning one share valued at £1 is perfectly fine.
• A SIC code (Standard Industrial Classification code): This five-digit code describes what your business does. You can find the right code for your business activities using the official list of SIC codes on the GOV.UK website.
• Details of any 'Person with Significant Control' (PSC): This is anyone who owns more than 25% of the shares or voting rights, or has the right to appoint or remove a majority of the directors. For most small businesses, the owner/director is the PSC.

The step-by-step registration process

Once you have all your information ready, the online process is straightforward:

1. Go to the GOV.UK website: Head to the official 'Set up a limited company' page.
2. Create a Government Gateway account: You'll need an account to register online. If you don't have one, you'll be prompted to create one.
3. Complete the application: The online form will guide you through entering all the information you gathered in the checklist above.
4. Appoint directors and shareholders: You will officially name the directors and allocate shares to the shareholders.
5. Review and submit: Carefully double-check all the details you've entered. Mistakes can be complicated to fix later.
6. Pay the fee: The standard online registration fee is £12, payable by card.

What happens after you've registered?

After you submit your application, it will be reviewed by Companies House. If everything is in order, your company will usually be registered within 24 hours.

You will then receive a Certificate of Incorporation by email. This is official proof that your company legally exists. It will include your Company Registration Number (CRN), which you'll need for all official business, like opening a business bank account.

Companies House will also automatically register your new company with HMRC for Corporation Tax at the same time. You don't need to do this separately.

Important: Keep your company's authentication code safe. This is a 6-digit code sent to the registered office address and is used to make online changes to your company in the future.

Your ongoing responsibilities

Remember, running a limited company comes with ongoing legal responsibilities. You'll need to file annual accounts and a confirmation statement with Companies House every year, as well as file a Company Tax Return with HMRC. Make sure you are aware of these deadlines to avoid penalties.