Setting up a UK company is fast, inexpensive and largely done online. It is also easy to get wrong in ways that cost money later. This is the sequence that works.
1. Choose the right structure
The two structures most new businesses choose between are the sole trader and the private limited company. A sole trader registers with HMRC and trades as an individual, with no separation between personal and business assets. A limited company is a separate legal person: it files accounts at Companies House, pays Corporation Tax, and shields its owners from most business debts.
Limited companies are the default for anyone who intends to raise money, take on significant commercial risk or pay themselves through dividends.
2. Check the name and register
Company names must be unique, must not be offensive, and must not imply a connection with government or a protected body. The register is searchable for free at Companies House.
Incorporation can be filed online. The government fee for online incorporation of a private limited company is 50 pounds, and most applications are processed within 24 hours. You will need a registered office address in the UK, at least one director, at least one shareholder, a memorandum and articles of association, and details of the company's share structure.
Directors and shareholders do not need to be UK residents, and there is no minimum share capital requirement.
3. Register for the right taxes
A new company must register for Corporation Tax with HMRC within three months of starting to trade. If turnover is expected to exceed the VAT registration threshold, currently 90,000 pounds over any rolling twelve months, the company must register for VAT.
Companies that pay anyone a salary must register as an employer for PAYE before the first payday. Registration can take several weeks, so it should not be left until the week payroll is due.
4. Open a business bank account
A limited company needs its own bank account, and using a personal account is a common and avoidable mistake. Most high street banks require proof of incorporation, proof of address and identification for every person with significant control. Digital banks generally open accounts faster.
5. Put compliance on a calendar
Once trading, a UK company carries a repeating set of obligations: annual accounts filed at Companies House, a confirmation statement at least once every twelve months, a Corporation Tax return, VAT returns if registered, and payroll submissions each pay period.
The deadlines are fixed and the penalties are automatic, which is why most companies hand the calendar to an accountant. The cost of doing so is almost always lower than the cost of a late filing.
6. Know what you do not need
You do not need a UK bank account in order to incorporate, you do not need a physical office, and you do not need a solicitor for a standard incorporation. You may need a licence for regulated activities, and you should check whether your sector requires registration with a professional body.
The whole process, done properly, takes about a week from first decision to a company that can legally trade.