Starting a New Limited Company:
A Simple Guide for UK Business Owners
Setting up a limited company is an exciting step, and with the right guidance, you can get your company registered, compliant, and ready to trade in no time.
In this guide, I’ll walk you through the key steps involved in setting up a new limited company in the UK, what to expect, and how to avoid common mistakes.
​1. Decide if a Limited Company Is Right for You
Many people choose it because:
• It separates your personal finances from the business
• You may pay less tax depending on your income
• It can look more professional to clients
• You can take advantage of limited liability protection
However, it also comes with more responsibilities, such as filing annual accounts and meeting director obligations.
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2. Choose a Company Name
Your company name must be:
- Unique (not already registered at Companies House)
- Not too similar to another company
- Free from restricted or sensitive words unless you have permission
- Also worth checking available website domains names, incase you want a website
3. Register Your Company with Companies House
To register your company, you’ll need:
- A company name
- A registered office address (this will be public)
- Details of at least one director
- Details of shareholders and share structure
- Standard Industrial Classification (SIC) code - this describes what your business does
Once submitted, Companies House usually approves new companies within 24 hours.
4. Set Up Your Company Records
After incorporation, you must keep certain records, including:
- Shareholder information
- Director details
- PSC (Persons with Significant Control) register
- Accounting records
5. Register for Corporation Tax
You must register your company for Corporation Tax with HMRC within three months.
You’ll need your:
- Company UTR (sent by HMRC after incorporation)
- Company registration number
- Start date of trading
6. Understand Your Director Responsibilities
As a director, you’re legally responsible for:
- Filing annual accounts
- Filing a Confirmation Statement
- Paying Corporation Tax
- Keeping accurate financial records
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7. Set Up a Business Bank Account
A limited company is a separate legal entity, so it must have its own bank account.
It also keeps your finances clean and makes bookkeeping far easier.
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8. Choose Your Accounting Software
Cloud accounting software makes running your business smoother and keeps you compliant with Making Tax Digital.
Popular options include:
- Xero
- QuickBooks
- FreeAgent
I help clients choose the right software and get everything set up properly from day one.
9. Consider Insurance and Other Registrations
Depending on your work, you may need:
- Public liability insurance
- Professional indemnity insurance
- Employers’ liability insurance (if you hire staff)
- CIS registration (if you work in construction)
- VAT registration (mandatory if turnover reaches £90,000)
Getting the right protection early on gives you peace of mind.
10. Get Professional Support Early
Many new directors try to manage everything themselves, only to realise later that they’ve missed deadlines or overpaid tax. Working with an accountant from the start ensures:
- Your company is set up correctly
- You stay compliant
- You understand how to pay yourself tax‑efficiently
- You avoid penalties and unnecessary stress
- You can concentrate on your business
Thinking of Setting Up a Limited Company? I Can Help.
I support new business owners with:
- Company formation
- HMRC registrations
- Bookkeeping setup
- Tax planning
- Ongoing support and advice
If you’re starting a limited company, or thinking about it, feel free to get in touch.
I’ll guide you through the process and make everything as simple and stress‑free as possible.​
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