How to Set Up a Limited Company 2026/27: The Complete Step-by-Step Guide
Set up a UK limited company 2026/27: the £100 Companies House fee, what you need (name, office, director, PSC, SIC), ECCTA identity checks and Corporation Tax.
A practical, step-by-step guide to incorporating a UK limited company in 2026/27. It costs £100 to register online with Companies House (usually done within 24 hours), or £124 by post. This page covers what you need before you start, how to register, identity verification under the Economic Crime and Corporate Transparency Act 2023, telling HMRC within 3 months that the company is active, and the ongoing accounts and confirmation statement duties that follow.
2026/27 formation key figures
Online registration fee
£100
Fee from 1 Feb 2026. Usually registered within 24 hours.
Register for Corporation Tax
3 months
Of starting to do business (tell HMRC you are active)
Confirmation statement
Every 12mo
£50 online from 1 Feb 2026
1. Should you incorporate?
A limited company is a separate legal entity from you. It gives limited liability - your personal assets are generally protected if the business runs into debt - and, once profits are higher, it can be more tax-efficient because you can take a small salary plus dividends rather than paying Income Tax and Class 4 National Insurance on all your profit as a sole trader would.
The trade-offs are more admin, more public disclosure (your accounts and directors are on the public register), and the cost of running payroll and filing company accounts. There is no single profit figure at which incorporation always wins - it depends on how much you draw versus reinvest, your appetite for admin, and how much you value the liability protection. We keep the full comparison in a dedicated guide rather than duplicating it here.
Decide first: Sole trader vs limited company - the full tax and liability comparison with worked examples.
2. What you need before you start
Gather these six things before you open the Companies House form. Having them ready means the online incorporation takes minutes rather than a stalled evening.
| Requirement | What it means |
|---|---|
| Company name | Must end in "Limited" or "Ltd" (Welsh: "Cyfyngedig"/"Cyf"). Cannot be the same as an existing registered name, cannot be offensive, and cannot use "sensitive" words (e.g. implying government links) or protected words without permission. Check availability on the Companies House register first. |
| Registered office | A physical address in the UK, in the same country the company is registered in (England & Wales, Scotland or Northern Ireland). It is on the public record and must be an "appropriate address" where post can be acknowledged. A home address works but is public; many use an agent's or accountant's address instead. |
| Director(s) | At least one director, who must be aged 16 or over (Companies Act 2006 s.157). A company secretary is optional. Each director's identity must now be verified (see section 4). |
| Shareholder(s) | At least one shareholder for a company limited by shares (or a guarantor for a company limited by guarantee). The shareholder can be the same person as the director. You set out the shares in a statement of capital. |
| SIC code(s) | One or more Standard Industrial Classification codes from Companies House's condensed list, describing the company's nature of business. |
| People with Significant Control (PSC) | Details of anyone who owns more than 25% of shares or voting rights, can appoint or remove directors, or otherwise exercises significant control. For a one-person company, that is usually you. |
You also adopt a memorandum of association (a legal statement that the subscribers agree to form the company) and articles of association (the written rules for running the company). Most new companies use the standard "model articles" without amendment.
3. How to register, step by step
- Choose your route. Register online with Companies House for £100 (usually incorporated within 24 hours), by post on form IN01 for £124 (8 to 10 days), or through a formation agent or third-party software.
- Verify your identity. Each director and PSC verifies their identity and gets a Companies House personal code (see section 4). Do this before you apply.
- Complete the application. Enter the name, registered office, directors, shareholders and statement of capital, SIC codes, PSC details, and confirm the articles. Pay the fee by debit or credit card.
- Receive incorporation. Companies House checks and, if all is in order, incorporates the company - usually within 24 hours online. Companies House issues a certificate of incorporation (Companies Act 2006 s.15).
- Watch for your UTR. HMRC posts a 10-digit Unique Taxpayer Reference (UTR) to your registered office. If it has not arrived 15 working days after registering, you can request it online. You need it to add Corporation Tax services to your business tax account.
Companies House fees changed on 1 February 2026, when the digital incorporation fee became £100 and the digital confirmation statement fee £50.
4. Identity verification (ECCTA)
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduced identity verification for company directors and people with significant control. Verifying gives you a Companies House personal code, which a new director provides when the company is incorporated or when they are appointed.
- How to verify: free through GOV.UK One Login, online or by entering your photo ID details and then visiting a participating Post Office, or through an Authorised Corporate Service Provider (ACSP) - an AML-supervised agent such as an accountant or solicitor registered with Companies House.
- Existing directors and PSCs: an existing director gives their personal code in the company's next confirmation statement; a PSC has a 14-day period to provide it, with dates depending on whether they were registered before 18 November 2025.
- Consequences: a company cannot file its confirmation statement unless all its directors are verified, and not complying can be an offence, with prosecution and a fine or a financial penalty.
Because verification is now a gate on incorporation, factor it into your timeline. If you use a formation agent that is an ACSP, they can carry out the verification as part of the package.
5. Register for Corporation Tax (and PAYE / VAT if relevant)
When you incorporate online you are usually set up for Corporation Tax at the same time, unless the company is dormant. Add Corporation Tax services to your business tax account, using your UTR, when the company starts to do business - buying, selling, advertising, renting a property or employing someone. HMRC's disclosure guidance says you must tell it within 3 months of the company becoming active.
- PAYE: if the company pays you or anyone else a salary, register as an employer and run PAYE. See optimum director salary 2026/27 to set a tax-efficient salary and dividend split.
- VAT: register once your taxable turnover crosses the VAT registration threshold (or voluntarily before then if it suits you).
- Making Tax Digital: MTD applies to VAT now, and MTD for Income Tax is being phased in for the self-employed and landlords - see our MTD for Income Tax software guide 2026/27.
6. Formation agent vs DIY
You can register directly with Companies House for the flat £100 online fee, or use a formation agent. Agents file the incorporation for you and usually bundle extras - the choice comes down to whether you want those extras in one place.
| Route | Typically includes | Best when |
|---|---|---|
| DIY (Companies House online) | Just the incorporation, for the £100 fee. | You only need the company itself and are happy to handle identity verification, registered office and tax registration yourself. |
| Formation agent | Incorporation plus, in various packages, a registered office or service address, a business bank account introduction, accounting or bookkeeping software, and identity verification as an ACSP. | You want the bundle in one place, or want the agent to run your identity verification. Compare what each package actually includes against the standalone fee. |
We do not recommend a specific agent. Agent packages cost more than the bare Companies House fee and some bundle recurring subscriptions, so weigh the extras against what you actually need.
7. What you must do after formation
Incorporation is the start, not the end. A limited company carries recurring filing duties whether or not it trades.
| Obligation | Deadline | To whom |
|---|---|---|
| Annual accounts | 9 months after year end (21 months for first accounts) | Companies House |
| Confirmation statement | At least every 12 months (£50 online) | Companies House |
| Company Tax Return + Corporation Tax | Tax due 9 months + 1 day after period end; return filed later | HMRC |
| PAYE (if paying salary) | Report on or before each payday (RTI) | HMRC |
Missing a Companies House deadline triggers automatic late-filing penalties; missing an HMRC deadline triggers penalties and interest. Many small companies use an accountant to keep these filings on track - see our contractor and limited company accountant guide 2026/27.
Related calculators and guides
- Sole trader vs limited company - decide whether to incorporate at all.
- Optimum director salary 2026/27 - set a tax-efficient salary and dividend split once incorporated.
- Contractor and limited company accountant guide 2026/27 - who handles your accounts, CT return and payroll.
- MTD for Income Tax software guide 2026/27 - the digital filing changes.
- Closing a limited company (MVL) guide 2026/27 - the other end of the company lifecycle.
Frequently asked questions
How much does it cost to set up a limited company?
Registering a limited company online with Companies House costs £100 (the fee from 1 February 2026), and the company is usually registered within 24 hours. Registering by post on form IN01 costs £124 and takes 8 to 10 days. You can also register through a formation agent or third-party software, whose combined package price varies. To register you need a company name, a UK registered office address, at least one director aged 16 or over, at least one shareholder, one or more SIC codes and details of your People with Significant Control.
How do I register a limited company?
You register directly with Companies House online, by post, or through a formation agent. The online route is the fastest and cheapest at £100 with the company usually incorporated within 24 hours. You supply a company name, a UK registered office address, at least one director, at least one shareholder (who can be the same person), one or more SIC codes describing what the company does, details of your People with Significant Control (PSC), and you agree to the memorandum and articles of association. Companies House issues a certificate of incorporation (Companies Act 2006 s.15), and HMRC sends the company's 10-digit Unique Taxpayer Reference (UTR) to the registered office; if it has not arrived 15 working days after registering, you can request it online. Every new director must verify their identity with Companies House and give their personal code when the company is incorporated.
What do I need to set up a limited company?
Six things. (1) A company name that ends in "Limited" or "Ltd" (or the Welsh "Cyfyngedig"/"Cyf"), is not the same as an existing name and does not use restricted or sensitive words without permission. (2) A registered office address in the UK, in the same country the company is registered in - this address is public. (3) At least one director aged 16 or over (Companies Act 2006 s.157); a company secretary is optional. (4) At least one shareholder or guarantor, who can also be a director. (5) One or more SIC codes from Companies House's condensed list, describing the company's nature of business. (6) Details of your People with Significant Control (PSC) - anyone who owns more than 25% of shares or voting rights, or otherwise controls the company. You also adopt a memorandum and articles of association (model articles are fine for most companies).
How long does it take to set up a limited company?
Registering online with Companies House is usually completed within 24 hours. Registering by post on form IN01 takes 8 to 10 days. Formation agents typically match the online 24-hour timescale because they file digitally. Identity verification for directors and People with Significant Control is now a required step, so allow time to verify your identity (online via GOV.UK One Login, at a participating Post Office, or through an Authorised Corporate Service Provider) before incorporation.
Do I need to register for Corporation Tax after forming a company?
Yes. When you register online with Companies House you are usually set up for Corporation Tax at the same time, unless the company is dormant. You then add Corporation Tax services to your business tax account, using the 10-digit UTR HMRC sends to your registered office, when the company starts to do business: buying, selling, advertising, renting a property or employing someone. HMRC's disclosure guidance says you must tell it within 3 months of the company becoming active.
What is identity verification for company directors?
Identity verification for Companies House, introduced under the Economic Crime and Corporate Transparency Act 2023, is free when you use GOV.UK One Login. You can verify online, by entering your photo ID details and then going to a participating Post Office, or through an Authorised Corporate Service Provider (ACSP) such as an accountant or solicitor registered with Companies House. Once verified you get a Companies House personal code. A new director gives it when the company is incorporated or they are appointed; an existing director gives it in the company's next confirmation statement; a person with significant control has a 14-day period to provide it, with dates depending on whether they were registered before 18 November 2025. A company cannot file its confirmation statement unless all its directors are verified, and acting without complying can be an offence.
Should I set up a limited company or stay a sole trader?
It depends on profit level, risk and admin appetite. A limited company is a separate legal entity that gives limited liability and can be more tax-efficient once profits are higher, because you can take a mix of a small salary and dividends. A sole trader is simpler and cheaper to run with less public disclosure, but you are personally liable for business debts. There is no single crossover figure - it turns on your profits, how much you draw versus reinvest, and whether you value the liability protection. Read our dedicated sole trader versus limited company comparison, and once incorporated use our optimum director salary guide to set a tax-efficient salary and dividend split.
What are the ongoing duties after setting up a limited company?
Four main recurring obligations. (1) File annual accounts with Companies House - due 9 months after the company's financial year end (your first accounts are due 21 months after the date you registered). (2) File a confirmation statement at least once a year, within 14 days of the end of each 12-month review period (Companies Act 2006 s.853A) - the online fee is £50 from 1 February 2026. (3) File a Company Tax Return and pay Corporation Tax to HMRC - the tax is due 9 months and one day after the accounting period ends, and the return within 12 months of it. (4) Run PAYE if you pay yourself or staff a salary, and register for VAT if turnover crosses the threshold. Many small companies use an accountant to keep these on track.
Is it worth using a formation agent?
A formation agent files your incorporation with Companies House on your behalf and usually bundles extras such as a registered office or director's service address, a business bank account introduction, accounting or bookkeeping software, and identity verification as an authorised corporate service provider. It can save time if you want those services in one place, particularly the identity verification step now that it is mandatory. The trade-off is that agent packages cost more than the flat £100 Companies House online fee, and some bundle recurring subscriptions. Registering directly with Companies House is straightforward if you only need the incorporation itself. We do not recommend a specific agent - compare what each package actually includes against the standalone Companies House fee.