In short: Plan your name, addresses and share structure before you apply, make sure each director and PSC can verify their identity, and register for Corporation Tax within 3 months of starting to trade. Then open a business bank account, keep business and personal money apart, and diary your first accounts and confirmation statement deadlines.
Starting a limited company in the UK is quick and inexpensive. But a few decisions at the start make a big difference later. Here are practical tips from our day-to-day work forming companies.
1. Pick a name you can keep
Check the Companies House register and the UK trade mark register before you commit. Avoid names that are very close to an existing business, and check that the domain name is available. Our Name Check tool is a good first step.
2. Think about privacy before you file
Your registered office address and each director's service address are public. If you use your home, it will appear on the register and in search results. Using a Registered Office Address and a Director Service Address keeps it private.
3. Get your share structure right
Decide who owns what before you form the company. Questions to ask:
- How many shares will each founder hold?
- Will you need different classes of shares later, for investors or family members?
- Should there be a shareholders' agreement setting out what happens if someone leaves?
Changing shares later is possible but takes time and paperwork.
4. Prepare for identity verification
Since 18 November 2025, every new director and person with significant control must verify their identity with Companies House, through GOV.UK One Login or an Authorised Corporate Service Provider (ACSP). Form My Company is a Companies House ACSP and can verify you remotely as part of your order. Have a valid passport or photo driving licence ready. Each person gets a personal code to use for their roles.
5. Choose the right SIC code
Your SIC code describes your main activity. Banks and insurers look at it, so choose the one that fits best.
6. Register for Corporation Tax on time
You must register with HMRC within 3 months of starting to trade. Starting to trade can include buying or selling, advertising or hiring. Many formation packages, including ours, handle this for you.
7. Open a business bank account
A limited company is a separate legal person. Its money is not your money. Open a business account as soon as possible and do not mix personal and company spending.
8. Understand how you get paid
Directors usually pay themselves through a salary, dividends, or both. Dividends can only be paid from profits. The best mix depends on your situation, so speak to an accountant.
9. Keep good records from day one
Keep receipts, invoices and bank statements. Use accounting software if you can. Good records save money at year end.
10. Diary your deadlines
- First accounts - due 21 months after incorporation.
- Later accounts - due 9 months after the financial year end.
- Confirmation statement - at least once every 12 months.
- Corporation Tax payment - usually 9 months and 1 day after the end of the accounting period.
- Company Tax Return - 12 months after the end of the accounting period.
Late accounts lead to automatic penalties from Companies House.
11. Check VAT and PAYE
Register for VAT when your taxable turnover goes over £90,000 in a rolling 12-month period, or earlier if it makes sense for you. Register for PAYE before you pay any employees, including directors in many cases.
12. Check licences and insurance
Some activities need a licence. Some contracts require insurance. Check both before you start trading.
Common mistakes to avoid
- Using a personal email or phone that you later want to change.
- Taking money out of the company without recording it.
- Ignoring post from Companies House or HMRC.
- Forgetting that a dormant company still has to file accounts and confirmation statements.
How Form My Company can help
Our packages cover formation and the early registrations, with the Companies House fee and VAT included. As a Companies House ACSP, we verify each director's and PSC's identity for you, remotely, as part of your order. The Fully Inclusive Package adds VAT and PAYE registration and our company filing service. Not sure which to pick? See Compare Packages.
Frequently asked questions
How long does it take to form a limited company?
Online applications are often approved within a working day, as long as all details are correct and identity verification is complete.
When do I register for Corporation Tax?
Within 3 months of starting to trade.
When are my first accounts due?
First accounts are due 21 months after the date of incorporation.
Can I be the only director and shareholder?
Yes. One person can be the sole director and sole shareholder.