How to set up a limited company, appoint directors and shareholders or guarantors, and register for tax.
Step 1 Check if setting up a limited company is right for you
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
Step 2 Choose a name
Step 3 Choose directors and a company secretary
and Identify people with significant control (PSC) over your company
For example, anyone with voting rights or more than 25% of the shares.
Step 5 Prepare documents agreeing how to run your company
You need to prepare a 'memorandum of association' and 'articles of association'.
Step 6 Check what records you'll need to keep
Step 7 Register your company
You'll need to register an official address and choose a SIC code - this identifies what your company does.
- Check the rules for company addresses
- Check what your SIC code is
- Register your company with Companies House
Most people can register for Corporation Tax at the same time as registering with Companies House.
If you cannot, register separately with HM Revenue and Customs (HMRC) after you’ve registered your company with Companies House.