Company registration in the UK: A step-by-step guide

1. Choose a company name

First things first, you need to choose a name for your company. Sounds simple enough, but there are a few rules to keep in mind. Your name can’t be too similar to an existing company’s, and it can’t contain any sensitive or offensive words. I recommend using the Companies House name checker to ensure your desired name is available. Once you’ve got a winner, you can move on to the next step.

2. Prepare incorporation documents

Next, you’ll need to prepare your incorporation documents. These include your memorandum and articles of association, which outline your company’s constitution and rules. You can use standard templates or create bespoke articles tailored to your company’s needs. If you’re unsure, it’s worth seeking professional advice to ensure your documents are watertight.

3. Appoint directors and a company secretary

Every company needs at least one director, and in some cases, a company secretary. Directors are responsible for running the company and ensuring it complies with legal obligations. When appointing directors, consider their skills, experience, and ability to make decisions in the company’s best interests. You’ll need to provide their personal details to Companies House as part of the registration process.

4. Set up a registered office address

Your company must have a registered office address in the UK. This is where official correspondence from Companies House and HMRC will be sent. Many companies use their accountant’s or a company formation agent’s address for this purpose. It’s a smart move if you don’t want your personal address to be public record.

5. Register with companies house

With all your documents and information in order, it’s time to register with Companies House. You can do this online, by post, or through a company formation agent. The online process is usually the quickest and easiest option. Once your application is approved, you’ll receive a certificate of incorporation, confirming your company’s legal existence. Congratulations, you’re officially in business.

Choosing the right company structure

One of the most important decisions you’ll make when registering your company is choosing the right structure. The type of company you form will impact your personal liability, tax obligations, and reporting requirements.

Private limited company

A private limited company is the most popular choice for small businesses. It offers limited liability protection, meaning your personal assets are separate from the company’s. Shareholders’ liability is limited to the amount they’ve invested in the company. This structure provides a good balance of protection and flexibility for most businesses.

Public limited company

A public limited company, or PLC, is a type of company that can offer shares to the public. It’s a more complex structure with stricter reporting and regulatory requirements. PLCs are typically larger companies with a significant number of shareholders. If you’re just starting out, a PLC may not be the right choice for you.

Limited liability partnership

A limited liability partnership, or LLP, combines the flexibility of a partnership with the limited liability of a company. It’s a popular choice for professional services firms, like accountants and solicitors. In an LLP, partners have limited liability for the company’s debts and obligations. They’re only liable for their own actions and not those of other partners.

Sole trader

Operating as a sole trader is the simplest way to run a business. You have complete control over your business decisions and keep all the profits. However, you’re also personally responsible for any debts and liabilities incurred by the business. This means your personal assets could be at risk if something goes wrong.

Essential requirements for company registration

Before you can register your company, there are a few essential requirements you’ll need to fulfill. Let’s take a closer look at each one.

Registered office address

Every company must have a registered office address in the UK. This is the official address where legal documents and correspondence from Companies House and HMRC will be sent. Your registered office address must be a physical address in the UK, and it must be available to receive mail during normal business hours. Many companies choose to use their accountant’s or a company formation agent’s address for this purpose.

Directors’ service addresses

In addition to the registered office address, each director must provide a service address. This is where official correspondence relating to their role as a director will be sent. The service address can be the same as the registered office address, or it can be a different address, such as the director’s home address. Keep in mind that service addresses are publicly available on the Companies House register.

SIC code

When registering your company, you’ll need to provide a Standard Industrial Classification (SIC) code. This is a five-digit code that describes the nature of your business activities. You can find the appropriate SIC code for your company using the UK Standard Industrial Classification of Economic Activities. It’s important to choose the code that most accurately reflects your business, as it helps government agencies classify your company for statistical purposes.

Memorandum and articles of association

The memorandum and articles of association are two essential documents that set out the rules and regulations for your company. The memorandum of association is a short document that states the subscribers’ intention to form a company and become members of it. The articles of association are a longer document that outlines the company’s internal management and decision-making processes. They cover things like the rights and responsibilities of directors and shareholders, the procedure for appointing and removing directors, and the rules for conducting meetings. You can use standard templates for these documents, or you can create bespoke articles tailored to your company’s specific needs. It’s important to ensure that your memorandum and articles of association comply with the Companies Act 2006.

Post-registration obligations and responsibilities

Congratulations, you’ve successfully registered your company. But the work doesn’t stop there. As a company director, you have ongoing obligations and responsibilities to ensure your company stays compliant with UK law.

Filing annual accounts

One of your key responsibilities is to file annual accounts with Companies House. These accounts must give a true and fair view of your company’s financial position and must be filed within nine months of your company’s financial year-end. Failure to file your accounts on time can result in penalties and even the dissolution of your company. It’s crucial to stay on top of your filing obligations to avoid any legal issues down the line.

Paying corporation tax

As a limited company, you’ll need to pay corporation tax on your profits. The current corporation tax rate in the UK is 19%, but this may change in the future. You must register for corporation tax within three months of starting to do business and file a company tax return each year. HMRC will use this information to calculate your corporation tax liability.

Submitting confirmation statements

In addition to filing annual accounts, you must also submit a confirmation statement to Companies House at least once a year. This statement confirms that the information held by Companies House about your company is accurate and up to date. You must submit your confirmation statement within 14 days of its due date, which is usually the anniversary of your company’s incorporation. Failure to do so can result in penalties and legal consequences.

Notifying companies house of changes

As a director, you have a legal duty to inform Companies House of any changes to your company’s details. This includes changes to your registered office address, directors, or share capital. You must report these changes within 14 days of them taking place. This ensures that the public record of your company is accurate and up to date.

Maintaining company records

Finally, you’re responsible for maintaining accurate and up-to-date company records. This includes registers of directors, secretaries, members, and people with significant control (PSC). You must keep these records at your company’s registered office or a single alternative inspection location (SAIL). You’re also required to keep minutes of board meetings and resolutions, which can be important for decision-making and dispute resolution. Maintaining accurate company records is essential for staying compliant with UK law and avoiding any legal issues down the line. It’s a good idea to set up a system for keeping your records organized and up to date.

Read our guide on how to verify a company as a foreigner in the UK.

Using a company formation service

Starting a business can be a daunting task, especially if you’re new to the world of company formation. That’s where company formation services come in. These services can help you navigate the complex process of registering your company and ensure that you stay compliant with UK law.

Benefits of using a formation service

Using a company formation service can save you time and hassle when registering your company. These services can help you with everything from choosing a company name to preparing your incorporation documents. They can also provide you with a registered office address and help you set up a business bank account. This can be especially useful if you’re based outside the UK and don’t have a physical address in the country.

Choosing a reputable service provider

When choosing a company formation service, it’s important to do your research and choose a reputable provider. Look for a service that has experience in UK company law and a track record of successfully registering companies. We recommend Sleek – user-friendly platform tailored for small and emerging businesses. Simply visit the page and these seasoned professionals will help you register your business, ensuring it is compliant with the UK laws and regulations. 

Additional services offered

Many company formation services offer additional services beyond the basic registration process. These can include registered office and director service addresses, VAT and PAYE registration, and trademark registration. You can also avail company secretarial services, which can help you stay on top of your ongoing legal obligations. These services can include preparing and filing annual accounts, submitting confirmation statements, and updating company records. Using Sleek’s company formation service can be a smart choice if you’re new to the world of business or don’t have the time or expertise to handle the registration process yourself.