Your business idea is ready, but one important question remains: is registering a company in the UK really as simple as people say? The short answer is that setting up a private limited company is usually quick and done online. However, choosing the right structure, identity verification, tax and access to banking matter just as much. If you are planning to enter the UK market, this guide gives you a clear picture of how to register a company in the UK before you pay for anything. To understand the wider business landscape, you can also read our guide to entrepreneurship in the UK.
Which type of company is right for you?
The most common choice for small and medium-sized businesses is a Private Limited Company (LTD). It is a separate legal entity, and shareholders' liability is normally limited to the capital they have committed.
An LTD is not the only option. An LLP is mainly used for professional partnerships, a PLC carries wider obligations as a public company, and a company Limited by Guarantee usually suits non-profit activity. The right choice depends on the number of founders, how ownership is split and your commercial goals.
One important point: registering a company does not, on its own, give you the right to live or work in the UK. If your goal is to relocate, check the requirements for a UK business visa separately.
Requirements and information you need
To register an LTD, you first need a name that is not the same as an existing company and that follows Companies House naming rules. Then prepare the following:
- Registered office address: a valid address in the jurisdiction where the company is registered. This address appears on the public record.
- At least one director: a director must be at least 16 years old.
- Shareholders and their shareholdings: one person can be both the director and the sole shareholder.
- Persons with significant control (PSC): for example, anyone who holds more than 25% of the shares or voting rights.
- SIC code: a code describing what the company does.
- Registered email address: used for Companies House correspondence and not shown publicly.
Information about directors and PSCs must be accurate. Identity verification requirements also apply to the people covered by them, so check the method and timing for verifying your identity in Companies House guidance before you apply.
Which documents do you need?
Registration normally requires Articles of Association, a Memorandum of Association and details of share capital, known as the Statement of Capital. If you use the standard (model) articles, some of these documents are generated during the online process. Unusual structures may need bespoke wording.
Keep the identity details of directors, shareholders and PSCs to hand. Companies House does not necessarily ask for a scanned passport for every person with the initial application, but identity verification and later checks may require evidence.
Registration steps: from choosing a name to receiving your certificate
The usual route to register a company in the UK as an LTD can be summarised in five steps:
- Choose your name and structure. Check the name on the Companies House service and decide the number of shares and each owner's stake.
- Set the address, directors, PSCs and SIC code. Double-check every detail before final submission.
- Verify identities and submit the application. Applications are normally made through Companies House online services.
- Receive your certificate of incorporation. Once accepted, the Certificate of Incorporation shows the company number and date of incorporation.
- Sort out tax and banking. The letter with the company's tax reference, or UTR, is usually posted after registration. For a business account, check each provider's documents and conditions separately.
How long does it take?
A straightforward online application is often processed within about 24 hours, but missing information or extra checks can take longer. Postal applications usually take around 8 to 10 working days.
How much does it cost to register a company in the UK?
The government fee is only part of your budget. A registered address service, accountancy, bespoke documents and professional services may all cost extra.
| Item | Approximate cost | Note |
|---|---|---|
| Online LTD registration | £100 | Standard fee; check before paying |
| Postal LTD registration | £124 | Usually slower to process |
| Annual Confirmation Statement | £50 | Online filing fee, as published |
Fees can change, so check the final amount on the official Companies House fees page when you apply. Before choosing an address service or business account, also ask about the annual renewal cost. A cheap set-up does not always mean a cheap company to run.
How are Corporation Tax, VAT and PAYE calculated?
An active company must meet its Corporation Tax obligations with HMRC. Normally, the rate is 19% on taxable profits up to £50,000 and 25% on profits of £250,000 or more. For profits between the two, Marginal Relief can change the effective rate. These thresholds are adjusted in some situations, for example where there are associated companies.
If your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, VAT registration is usually compulsory, and separate rules apply if you expect to cross the threshold soon. If the company employs staff or pays a director a salary above the relevant thresholds, PAYE registration may be needed. For an overview, our article on types of tax in the UK is a useful companion, but always have the final calculation done by an accountant.
What are your annual obligations after registration?
Registration is not the end of the paperwork. A Confirmation Statement must be filed at least once every 12 months to confirm the company's details, even if nothing has changed. The company must also file its accounts with Companies House on time. The first accounts are usually due 21 months after incorporation, and later accounts are usually due 9 months after the end of the company's financial year.
Don't confuse two tax deadlines: paying Corporation Tax is usually due 9 months and 1 day after the end of the accounting period for most companies, while filing the Company Tax Return is usually due 12 months after the end of that period. When the company starts trading, you must also tell HMRC within the required deadline.
An important note for Iranian applicants: registration is easy, banking not always
For some Iranian applicants, the real challenge begins after you register a company in the UK: opening a business account, verifying directors and checking the source of funds. Legally registering a company does not guarantee that a bank will accept your application, or that you will get access to Stripe or PayPal. Each provider's policy, where the owners live and the type of business can all affect the outcome.
Before paying registration fees, check the documents required and any likely restrictions from account providers. Our guide to opening a bank account in London covers the first questions to ask. Plan how capital will be moved from the start, in a transparent and documented way.
Summary: weigh up the ongoing costs before you register
Setting up an LTD can be a good starting point for international business, but a good decision is not made on registration fees alone. Look at a valid address, tax obligations, a business account and the ability to move funds legally together. If you have questions about transferring money to the UK for your company, contact Sarafi Bartar London to discuss the financial services available and their conditions.
Frequently asked questions
Can I register a UK company without living in the UK?
In many cases, directors and shareholders do not need to be UK residents. However, the company needs a valid registered address, and identity verification and banking have their own separate requirements.
Does registering a company lead to a visa?
No. Registering a company and getting a visa are two separate processes, and each immigration route has its own requirements.
Does a dormant company still have to file reports?
Yes, it usually still needs to file a Confirmation Statement and the appropriate accounts. The tax position of a dormant company should also be checked with HMRC.