How to Set Up a Private Limited Company in the UK in 9 Steps

To register a private limited company in the UK, you need to apply to Companies House with a unique company name, a registered office address, and at least one director and shareholder. That is the official part, but what does it actually mean in practice?

If you have been searching for “Ltd company registration” and keep running into legal phrases like Articles of Association or share capital, do not worry. The process sounds heavier than it is. Once you break it into simple steps, setting up your company can be quick and stress-free.

In this guide, we will walk you through exactly how to do it, from choosing your company name to filing taxes, and show you how ANNA can make the whole process easier.

Why set up a private limited company in the UK?

Private limited companies are the most popular company types in the UK, accounting for over 90% of all corporate bodies.

With numbers that big, there’s got to be a good reason why private limited companies are such a hit, right?

Let’s see the main reasons for their popularity.

• Limited liability gives peace of mind: If things ever go wrong, your personal assets, such as your house or savings, are safe. Your risk is limited to what you’ve put into the company and not everything you own.
• Tax efficiency: Limited companies pay Corporation Tax, which is usually less than the income tax sole traders pay. Additionally, directors can mix salary and dividends to keep their tax bills lean.
• It looks professional: Having “Ltd” after your name instantly boosts credibility. Customers, suppliers, and investors tend to trust a limited company more than a sole trader setup.
• Easier to raise money: In case you need funding, a limited company can issue shares, attract investors, and secure bank loans more easily than a sole trader.
• Built to last: Your company doesn’t vanish if you step away or change directors. It continues to run, which is great for stability and long-term planning.
• Provides flexible ways to pay yourself: You can structure your income in a way that’s smart for tax and your financial goals, through a combination of salary, dividends, bonuses, pension contributions, and director’s loans.
• Protected business name: Once registered with Companies House, your business name is legally yours, preventing others from registering identical or very similar names.
• Pension perks: Company pension contributions are tax-deductible, so you’re planning for retirement and saving on tax at the same time.

How to register a private limited company in the UK in 9 easy steps

Here’s how to go from idea to official Ltd status in the UK, without the stress.

1. Choose a company name

This is one of the most important parts of company formation in the UK, since Companies House will reject any name that’s already taken or too similar to an existing business.

Here’s what to pay attention to:

Make it unique

Your name can’t be a copycat. It needs to be distinct from anything already on the Companies House register to avoid confusing customers or worse, getting into legal trouble.

You should have a few backup names ready, just in case your first choice is taken.

Check for trademarks

Registering with Companies House is one thing, but don’t forget trademarks.

A quick check with the UK Intellectual Property Office can save you from nasty surprises later.

The last thing you want is a legal fight over your brand name.

Watch out for restricted words

Some words are off-limits or need special approval.

For example, anything that sounds official, such as “Royal” or suggests sensitive industries, such as “Bank” or “Insurance.”

If you use them without permission, your application will hit a wall. Also, Companies House will reject names that are offensive or misleading.

Don’t forget the suffix

If you’re setting up a private limited company, your name must end with ‘Limited’ or ‘Ltd’, or the Welsh versions ‘Cyfyngedig’ or ‘Cyf’ if you’re in Wales.

This signals limited liability to the public and is a legal requirement.

Mind the characters

Most everyday symbols like hyphens, apostrophes, or an ampersand (‘&’) are fine. But things like ‘+’ or ‘#’ can cause problems. When in doubt, keep it simple.

💡 Need a few smart shortcuts to simplify the process?

Use ANNA’s free company name checker to see if your name is available or find some alternatives if it's not. An additional perk is that with ANNA, you can also register your business in minutes and keep your paperwork organised.

• Register a trademark for your company name and logo separately to secure exclusive rights to your brand.
• Consider privacy impacts: your company name and director’s details will be publicly accessible via Companies House.

Pick a name that’s unique, legal, and truly reflects your brand, and you’ll avoid registration headaches, legal trouble, and confused customers.

2. Decide on the company structure

The two most common structures for private limited companies are companies limited by shares and companies limited by guarantee.

How to choose between the two?

If your main goal is making a profit, growing your business, raising capital, and having flexible ownership, go for a company limited by shares.

On the other hand, if your focus is on social impact, community projects, or charitable work rather than commercial profit, a company limited by guarantee is usually the better fit.

The type you choose affects everything from taxes and legal responsibilities to funding options and how the business is run.

Think about your purpose, how much personal liability you’re comfortable with, and your growth plans to pick the structure that works best.

3. Register office address

A registered office address is your company’s official ‘home’ on paper.

It’s the address recorded with Companies House where all formal communications, legal notices, and government letters, such as those from HMRC or Companies House itself, are sent.

Your registered office needs to be:

• A physical location in the UK: Since March 2024, PO Boxes aren’t allowed. Companies House can move your registered office to a default address, or even strike off your company if the address isn’t compliant.
• In the same UK jurisdiction as your company registration (England & Wales, Scotland, or Northern Ireland).
• Appropriate under the Economic Crime and Corporate Transparency Act 2023, which means that mail sent there reaches someone acting for the company, and deliveries can be acknowledged as received.

In addition, your registered office is publicly listed on Companies House. Customers, suppliers, and anyone curious can see it.

What are the options for your registered office?

• Home address: Common for startups, but makes your home public.
• Commercial office: Professional and private.
• Virtual office services: Maintain privacy and receive mail professionally.

Good to know

Always keep your registered office up to date with Companies House.

Using an invalid address can lead to penalties, compliance problems, and even the risk of your company being struck off.

Companies House will notify directors if the address is inappropriate, and can take action if nothing is done.

With ANNA’s virtual office services, you can:

• Use the Prime London address for all mail, including official government correspondence.
• Keep your personal address private and avoid spam and scam letters.
• Get same-day mail scanning straight to your email.
• Have all essential taxes for small businesses covered.

4. Appoint directors and shareholders

Before your company can officially start, you’ll need to decide who’s in charge and who owns a piece of the business.

Who can be a director, and what do they need to know?

• Minimum requirement: Every private limited company must have at least one director, and it has to be a real person, not another company.
• Role: Directors are the people steering the ship. They manage day-to-day operations, make key strategic decisions, and make sure the company follows all legal requirements under the Companies Act 2006.
• Appointment: Shareholders appoint directors, and their details must be registered with Companies House within 14 days of appointment.
• Duties: Directors have legal responsibilities, including promoting the success of the company, acting with care and skill, and avoiding conflicts of interest. Ignoring these duties can lead to serious consequences, including personal liability.
• Shares and directors: You don’t have to be a shareholder to be a director, though many directors are. Some company articles may require directors to hold shares, but it’s optional unless specifically stated.
• Identity verification: Starting in late 2025, directors will need to verify their identity as part of new anti-fraud and transparency rules. Failing verification could mean you’re disqualified from acting as a director.

✨ Good news

ANNA Money is now an official Authorised Corporate Service Provider (ACSP). That means Companies House has approved us to carry out identity checks for anyone setting up a UK company. It is a big trust mark that shows we can handle the process securely and compliantly, making life much easier if you want to start your business the smart way.

Who can be a shareholder, and what rights come with it?

Minimum requirement: At least one shareholder is required to own the company’s shares. The shareholder can also be the sole director.

Ownership: Shareholders are the owners of the company who provide capital by purchasing shares. Their liability is limited to the amount unpaid on their shares.

Rights: Shareholders receive rights such as voting at general meetings, receiving dividends proportional to their shareholding, and participating in capital distributions if the company is wound up.

Transferability: Shares can be transferred or sold to others, subject to the company articles and shareholder agreements.

5. Get your documents ready

First things first: gather all the essential documents so the registration process goes without a hitch.

These documents collectively establish the company's legal identity, governance framework, and operational protocols, ensuring compliance with UK company law.

✅Memorandum of Association

The Memorandum of Association is a legal statement signed by the company’s first shareholders or guarantors, confirming their intention to form the company and become its initial members.

It lists the company name and the names of everyone agreeing to set it up.

If you’re registering online, this document is generated automatically, but it’s still a formal declaration that officially creates your company as a legal entity.

✅Articles of Association

The Articles of Association are basically your company’s rulebook.

They explain how the company will be run and governed, covering things such as:

• The rights and responsibilities of directors and shareholders,
• How meetings are held,
• How shares are issued or transferred,
• How decisions are made, and other key organizational rules.

Most companies adopt the Model Articles published by the UK government, which works for most standard businesses and simplifies setup.

Alternatively, companies can draft customised articles to meet specific governance needs.

✅Application to register a company (Form IN01)

This form includes all the key details about your company: the proposed company name, registered office address, information about directors and shareholders, share capital, and a statement confirming that all legal requirements are met.

You submit it to Companies House, either online or by post, along with the registration fee ( more about it in a bit).

✅Certificate of Incorporation

The certificate is an official confirmation that the company legally exists. It is issued after successful registration.

It includes the company name, registration number, and incorporation date.

You need this document for opening business bank accounts, entering contracts and proving the company’s legal status.

Here at ANNA, we can register your company in 5 minutes, enabling you to receive your certificate of incorporation within hours.

6. Choose a SIC code

A Standard Industrial Classification (SIC) Code is a five-digit number that classifies a company's primary economic activity and describes the nature of the business’s operations.

The UK's Office for National Statistics maintains it and aligns it with European and global classification standards.

SIC codes help Companies House, HMRC, government agencies, and statisticians track and analyse business activity across the economy.

They are used for official statistics, regulatory reporting, tax categorisation, sectoral economic analysis, and policy-making.

Selecting the correct SIC code ensures your company is accurately recorded in business registers and statistical databases.

7. Register with Companies House: The core step in how to register a private limited company

To officially register your company, you need to submit your application to Companies House, the UK’s official company registrar.

The easiest and fastest way is online, where you can complete and file all your incorporation documents digitally.

The current standard online fee is £50.

If your application is accurate and complete, Companies House usually processes it within 24 hours, meaning your company can be officially up and running very quickly.

Did you know?

With ANNA, if you submit your application by 3 pm on a working day, your company will be incorporated and your business account opened by the end of the day.

What’s more, the Companies House fee is on us.

8. Open a business bank account

For a private limited company, a business bank account is legally necessary because the company is a separate legal entity from its owners.

It helps you manage business finances separately from personal accounts, ensuring clear records for tax, accounting, and legal purposes.

It also makes managing income, expenses, payroll, and taxes, such as VAT and Corporation Tax much smoother, while helping with overall financial planning.

What do you need to open a bank account?

• Proof of identity: Valid passport, UK driving license, or national ID for directors, owners, and people with significant control.
• Proof of business registration: Certificate of Incorporation from Companies House, business registration number, and registered office address.
• Proof of address: Recent utility bills, bank statements, or lease agreements for both business and personal addresses.
• Additional information: Details on the nature of business activities, expected turnover, ownership structure, and sometimes financial forecasts.
• Age and residency: Account holders must usually be 18 or older, and most banks require UK residency for directors or owners, though some challenger banks have more lenient policies.

How to choose the right type of banking account?

Banks offer different types of accounts tailored to businesses: accounts for startups, SMEs, non-profits, or international companies.

Think about features such as online banking, payment processing, multi-currency options, accounting software integration, credit facilities, and fees.

Fintech and challenger banks may provide faster, digital-friendly accounts, but often lack some traditional banking facilities.

How long do you need to wait?

Opening the account usually involves applying online or in branch, followed by identity and credit checks.

Full account setup can take anywhere from a few days to several weeks depending on the bank and business complexity.

Want registration and a business account in one go?

ANNA combines registration with financial management.

As soon as you register, your business account is ready, with invoicing tools, a debit card, and integrations with platforms like Etsy, Amazon, and Shopify.

9. What tax registrations and deadlines will affect your new company after incorporation?

Once your company is officially up and running, there are several tax registrations and deadlines you’ll need to keep on top of to stay compliant and avoid penalties.

Register for corporation tax

You need to register with HMRC within three months of starting any business activity, such as buying or selling goods, hiring staff, advertising, or renting property.

You can do this online using your company registration number and the Unique Taxpayer Reference (UTR), which HMRC sends about 14 days after incorporation.

VAT registration

If your company’s taxable turnover exceeds £90,000 in a 12-month period, or is expected to do so within the next 30 days, you must register for VAT.

Registration and filing are done online, and VAT returns are typically submitted quarterly.

PAYE registration

If your company has employees or pays salaries, including directors, you must register as an employer and operate PAYE to handle income tax and National Insurance deductions before the first payday.

💡 ANNA’s +Taxes service takes the stress out of tax.

It automatically handles your VAT, PAYE, and Corporation Tax filings, keeping everything HMRC-compliant.

Also, smart tax pots set aside money every time you get paid, so you’re never caught off guard.

Wrapping it up: How to register a private limited company in the UK?

Whether you call it Ltd company registration, company formation in the UK, or simply incorporating your business, the process doesn’t have to be overwhelming.
With ANNA you can register your Ltd company online in minutes, with all the legal steps simplified.

How to register a private limited company with ANNA?

ANNA Money is an all-in-one business account for money, invoicing, expenses, bookkeeping, and taxes.

• Open your account in minutes: Free, quick setup with flexible plans that grow with your business.
• Manage money with ease: Handle payments, expenses, payroll, and taxes all in one place.
• Stay compliant: File your company’s confirmation statement with Companies House accurately and on time.
• Payroll made simple: Automatically create and store P45s and P60s, generate payslips, and file directly to HMRC.
• Tax registrations sorted: Get help registering for VAT, Payroll, and Corporation Tax.
• Save on taxes: Automatic expense sorting helps you claim more and lower your tax bills.

🚀 Did You Hear?

We made history as the first UK financial company to show that a smart AI (a Large Language Model agent) can handle the entire company registration process, from authorization and identity checks to making payments, completely on its own.

Try ANNA today and register your private limited company online in minutes.