How to register a business in the UK?

Choose how you are going to run/operate your business

You can setup your business in different ways. Deciding on which one is important, so here are a few things to consider:

• Sole Trader – You are the sole owner of the business, and you hold all liability for company debts. If you have decided to run your business as a sole trader, you won’t need to register it on Companies House. Register as a self-employed person for a Self-Assessment here.
• Partnership – You share the ownership and responsibilities with your partner (or partners). You share in the profits or losses and are responsible for bills and things you buy such as stock and equipment. You must register your partnership for Self-Assessment at HMRC, but you don’t have to register at Companies House.
• Limited company – According to Simply Business, a limited company has its own, separate legal identity even if the business is run by one person, who is acting as shareholder and director. Learn more about the advantages of each of the structures here.

Choose your director and company secretary

Your company must have at least one director. It’s an important role as directors are legally responsible for managing the company and making sure that company accounts and reports are accurately prepared. They also are responsible for filing the annual accounts and the company tax return with HMRC, alternatively, you can get your accountant to do this for you. Directors must be at least 16 years of age and you can find out more about the requirements for company directors on the Companies House website.

You don’t have to appoint a company secretary, although many firms have one to help with some of the director’s duties. The company secretary may also be a director.

Entering Shareholders

Your company must have at least one shareholder who can also be a director. If you are the only shareholder you will own 100% of the company. There’s no maximum number of shareholders.

When entering shareholders (referred to as ‘subscribers’ for newly formed companies) it’s important to make sure their details are accurate. Key things to verify and include:

• Correct Names: Double-check that all shareholders’ names are spelt correctly and accurately reflect the individuals or entities involved.
• Avoid Self-Subscription: Ensure the company itself is not mistakenly listed as a subscriber.

Prepare essential documents to run your company

Before launching your business, you need to create documents that detail how your company will be managed, including:

• Memorandum of Association (MoA): This is a legal statement signed by all initial shareholders, confirming their agreement to form the company. It officially establishes your business.
• Articles of Association (AoA): These are the rules that dictate how your company will work. They cover important details such as decision-making processes, the responsibilities of directors and shareholders, and the conduct of meetings.

Helpfully, if you register online the MoA will be created for you. There are model AoAs online too so you can use these if they fit the bill. Both documents are required and serve as the core framework for how your company will operate.

For more information on Memorandum and Articles of Association, take a look at this gov.uk article. 

Choose your company’s name

Choosing your company’s name is good fun and exciting. Give some thought as to what it says about your business and think about it lasting for years. This article by Companies House advises on checking if your company’s name is available via their company name checker.

Extra tip: to ensure a successful application, make sure to circle back to the company name availability tool a few times throughout the registration process, as someone could have snapped the name whilst you were filling in the application!

Another factor to consider when picking out your business name is whether or not the chosen company’s name includes a ‘sensitive’ word – browse this comprehensive list of all sensitive words and expressions of the gov.uk website. In addition, Companies House also has a Trademark checker available to use here which is always worth checking before choosing a name.

Lastly, double and even triple-check that your chosen company’s name is consistent throughout the application. Failure to do so can result in your application being rejected and, therefore, having to repeat the process.

Decide on your registered office address

You have to provide a registered office address when you set up a company. It needs to be a physical address in the UK and must also be ‘appropriate’. What that means is that someone acting on behalf of your company will be made aware of post delivered and that if a sender wants it, they can get confirmation of delivery.

Sometimes people use their home address as the registered office. That might seem a good idea at the time but the information is on the public record and cannot be removed. As an alternative, many businesses use a virtual office as their registered address. That keeps things private. To help, take a look at our locations across the UK, we have over 140 locations to choose from.

Find out more about rules for company addresses here.

Check what records you’ll need for your company

You need to keep records up to date. Lots of businesses use accountants to prepare and send in their annual accounts and most companies use accounting software for their internal books. But there are other records you need to keep too:

Statutory Records:

• Register of shareholders: Details of who owns shares in the company.
• Register of directors: Information about the company’s directors.
• Register of people with significant control (PSC): A record of individuals who have significant influence or control over the company.
• Records of resolutions and meetings: Minutes of director and shareholder meetings, as well as any resolutions passed.

Accounting Records:

• Records of all income and expenses, assets, liabilities, and any other financial transactions.
• Copies of invoices, receipts, and other proof of transactions.
• Details of the company’s debts, liabilities, and assets (e.g., property, stock).

Tax Records:

• VAT records (if applicable).
• PAYE records for employee wages and tax contributions.
• Corporation tax returns.

Keeping these records is very important for compliance with legal requirements, reporting to HMRC, and ensuring your business runs efficiently.

Identify people with significant control (PWSC) over your company

You must identify individuals with significant control (PWSC) over your company. A PWSC is someone who meets one or more of the following conditions:

• Owns more than 25% of the company’s shares
• Holds more than 25% of the company’s voting rights
• Has the authority to appoint or remove the majority of the boards of directors
• Exercises significant influence or control over the company

These details need to be registered with Companies House to ensure transparency and compliance with UK regulations.

Register your company on Companies House

Once you have ironed out all the details, it is time to register your business on Companies House. Alongside the business name and physical address, you will need to attach the Memorandum of Association, Articles of Association and shareholder details. Companies House charge £50 to register online and £71 by paper.

Once the application has been processed and approved, you should receive a certificate of incorporation, which confirms that your business is officially registered in the UK.

According to a Companies House article, the certificate of incorporation is “conclusive evidence that the registration requirements of the Companies Act 2006 have been complied with and that the company is duly registered under this Act”. The certificate includes the company’s name and registered number, the date of incorporation, company type (private limited by shares) and, lastly, where the company’s registered office is based.

How long does it take to register a company in the UK on Companies House?

Once a new company’s information is submitted to Companies House, it typically takes between 3 and 5 hours for the company to be officially formed; its surprisingly quick if all the forms are correct.

Efficiency tip: for startups, we recommend exploring options to outsource some of your administrative work, so you have all time to focus on your business whilst drastically reducing initial overhead costs – take a look at our additional service offering.

And that’s it! Hopefully, you’re now ready to register your business in the UK. We wish you every success and hope this guide makes the process a bit smoother as you get started. It’s often simpler than many people think. Good luck!

If you are still unsure on all the ins and outs of virtual offices and registration via Companies House, please visit our FAQs.