Company Formation in the UK: Your Complete Guide to Starting a Business
Thinking about starting a business? One of the first steps you’ll take on your entrepreneurial journey is company formation—the process of legally setting up your company with Companies House, the UK’s registrar of companies.
In this guide, we’ll walk you through the essentials of company formation, the different types of business structures, and the key things you need to know before you begin.
🔍 What Is Company Formation?
Company formation is the legal process of registering a new business with Companies House. Once registered, your business becomes a legal entity, separate from its owners (you). This structure offers legal protection, credibility, and tax advantages, depending on your circumstances.
🏢 Types of Business Structures in the UK
Before registering, you’ll need to choose the right business structure. Here are the most common types:
1. Sole Trader
Easiest to set up
You’re personally responsible for all debts
Minimal admin and lower costs
2. Limited Company (Ltd)
A separate legal entity
Your personal assets are protected (limited liability)
Must file annual accounts and confirmation statements
Ideal for businesses wanting to scale
3. Limited Liability Partnership (LLP)
Combines flexibility of a partnership with limited liability
Common for professionals (e.g., accountants, solicitors)
4. Public Limited Company (PLC)
Suitable for large businesses wanting to raise capital publicly
Requires a minimum share capital of £50,000
🧾 What Do You Need to Form a Company?
Here’s what you’ll need to register a limited company:
✅ A unique company name
✅ A UK registered office address
✅ At least one director
✅ Shareholders (can be the same as the director)
✅ Details of shares issued
✅ Standard Industry Classification (SIC) code
✅ Memorandum and Articles of Association
✅ A Companies House registration fee (£50 online or £71 by post)
💷 What Are the Costs?
Online registration: £50
Same-day registration: £78 (via software filing)
Confirmation Statement (annually): £34 (online)
Filing via an agent (like Barnett & Co): Professional fees may apply, but we ensure accuracy and save you time
🕒 How Long Does It Take?
Online company formation can be completed within 24 hours
Same-day services are available for an additional fee
Paper applications take around 8–10 working days
✅ Benefits of Forming a Limited Company
Limited liability: Protect your personal assets
Professional image: Build credibility with clients and suppliers
Tax efficiency: Access to more tax planning options
Separate legal identity: The business can own assets, sue, and be sued
🚀 How Barnett & Co Can Help
Forming a company doesn’t need to be confusing. At Barnett & Co Accountants, we offer:
📌 Company formation packages
📌 Registered office services
📌 Company secretarial support
📌 Ongoing compliance and tax advice
Whether you’re a freelancer turning your side hustle into a limited company or launching a brand-new venture, we’ll guide you every step of the way.
💬 Ready to Get Started?
Let’s form your company the right way—quickly, compliantly, and with expert support from Barnett & Co.
📞 Contact us today or check out our affordable company formation packages.
