Set up a limited company: step by step

How to set up a limited company, appoint directors and shareholders or guarantors, and register for tax.

1. Step 1: Check if setting up a limited company is right for you

   1. Check what a private limited company is

   How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and get funding.

   Check if you should set up as one of the following instead:

   • self-employed ('sole trader')
   • a business partnership
   • a social enterprise
   • an overseas company
   • an unincorporated association

   1. Get help deciding how to set up your business

2. Step 2: Choose a name

   1. Check the rules for company names
   2. Check if the name you want is available
   3. Check existing trade marks

3. Step 3: Choose directors and a company secretary

   You must appoint a director but you do not have to appoint a company secretary.

   1. Find out what directors are responsible for
   2. Check who can be a director or company secretary

4. Step 4: Decide who the shareholders or guarantors are

   You need at least one shareholder or guarantor, who can be a director.

   1. Check if you’ll need to issue shares or set a 'guaranteed amount'
   2. Find out how dividends from shares are taxed

5. and Identify people with significant control (PSC) over your company

   For example, anyone with voting rights or more than 25% of the shares.

   1. Find out what counts as a PSC

6. Step 5: Prepare documents agreeing how to run your company

   You need to prepare a 'memorandum of association' and 'articles of association'.

   1. Find out how to create a memorandum and articles of association

7. Step 6: Check what records you'll need to keep

   1. Check the company and accounting records you must keep

8. Step 7: Register your company with Companies House

   You'll need to register an official address and choose a SIC code - this identifies what your company does.

   1. Check the rules for registered office addresses and email addresses
   2. Check what your SIC code is
   3. Register your company with Companies House

9. Step 8: Manage your Corporation Tax

   1. Add Corporation Tax services to your business tax account