Register a Limited Company

Congratulations on starting up your own business!

By now you're wondering how you go about setting up your new business. You've probably already given it a quick Google and seen a dozen or so HMRC links with a lot of circular references and even more links from formation companies- we're going to cut through all of that with this relatively simple guide to registering a Limited Company with HMRC and Companies House.

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First though, it's always worth checking that setting up a Limited Company is right for you. Limited Companies require a lot more leg work and even have their own special set of laws, with the main one being The Companies Act 2006.

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To check whether setting up a Limited Company is right for you, you can book a free consultation here.

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1. You have to register your Limited Company with both Companies House and HMRC. You can do this at the same time using the button below
    

2. There are no trading allowances for a limited company and a limited company does not have a personal tax allowance like a sole trader would. Click here if you're looking to register as a sole trader.
    

3. If you're going to set up as a limited company then you've got to register for Corporation Tax with HMRC within 3 months of starting to trade.
    

4. Like with registering as a sole trader, you'll have to set up a Government Gateway account. 
    

5. Registering a limited company costs £12.
    

6. You'll need to have details of all shareholders, guarantors and directors.
    

7. You'll have to decide (and tell Companies House) who the directors are and who the shareholders or guarantors are along with how many shares they'll each own, what types of shares they'll own and what the voting rights are for those shares.

   • I'd recommend going for a number of shares that is easily divisible e.g. multiples of 100 with a value of £0.01 each. It makes it much easier to transfer shares if you plan to bring on other shareholders in the long run
      

8. Model Articles- each company needs a set of Articles of Association. The Articles set out how the business will be run, what it's purpose is and how directors will be appointed and removed (to name a few key points). You can find out more about Articles of Association here. You're required by law to have these, but don't sweat, you can use something called "Model Articles"- these are preset Articles written by Companies House.
    

9. Carry on following the steps to register your limited company via the button below. You'll also register for Corporation Tax at the same time (unless you tell HMRC that you won't be trading straight away). You'll also have the option to register for PAYE which is a must if you're going to take any money out of the business or employ staff. You can find out more about our payroll pricing here.
    

10. 10. If you get stuck, or you're not able to register a limited company yourself, then please don't hesitate to get in contact. Just drop us an email or give us a call.

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Now that you've registered your limited company, you're going to have to think about accountancy software, bookkeeping, payroll, VAT and completing your company accounts and tax return.

For a quote on all of the above, use our downloadable Limited Company Quote Calculator for a rough idea of expected fees.