Start My Own Company in the UK: A 2026 Step-by-Step Guide
Starting your own company in the UK can feel complicated at first. There are forms to complete, rules to understand, and decisions to make. But once you know what is required, the process becomes much easier to manage. If you want to set up a private limited company, you will need to register with Companies House, verify the identities of the relevant people, and provide an appropriate UK registered office address.
The online incorporation fee is £100 in 2026, and many applications are processed within 24 hours. Before you register, take some time to shape your business idea and write a simple business plan. If you intend to sell physical products, think about packaging and delivery arrangements too. This guide walks you through the process, explains the main costs, and highlights the important UK company rules to know in 2026.
Sole Trader or Limited Company: Which Should You Choose?
Your first decision is choosing the right business structure. The two common options are sole trader and limited company.
Starting as a Sole Trader
A sole trader structure may suit you if you are testing a business idea, working independently, or running a small business. You do not need to register a company with Companies House. However, you may need to register for self-assessment with HMRC. Generally, this is required if your gross trading income is more than £1,000 in a tax year.
As a sole trader, you are personally responsible for your business debts.
Setting Up a Limited Company
A private limited company is a separate legal entity from its owners. This structure may suit you if you want to work with larger clients, bring in shareholders, or keep company finances separate from your personal finances.
A limited company must keep proper records, file annual accounts, and submit confirmation statements. It also has corporation tax responsibilities.
A Simple Corporation Tax Example
For the 2026 financial year, the small profits rate of corporation tax is 19% for eligible companies with profits of £50,000 or less. The main rate is 25% for profits above £250,000. Companies with profits between these limits may qualify for marginal relief.
For example, if an eligible company has £50,000 in taxable profits, its Corporation Tax at 19% would be £9,500.
These thresholds can be affected by factors such as associated companies and the length of the accounting period. This is a simplified example, not personal tax advice. Check your circumstances with HMRC or a qualified accountant.
The rest of this guide focuses on setting up a private limited company.
Three Important UK Company Rules to Know in 2026
Before submitting your application, understand these three important requirements.
1. The Online Registration Fee Is £100
Companies House increased its digital incorporation fee to £100 from 1 February 2026.
The digital confirmation statement filing fee is now £50. This is why older articles quoting £12 or £50 for online company incorporation may contain outdated information.
You can check the current fees on the official Companies House website.
2. Identity Verification Is a Legal Requirement
Identity verification became a legal requirement on 18 November 2025. Companies House is introducing the requirements over a 12-month transition period.
New directors must verify their identity when incorporating a company or being appointed to an existing company. Existing directors and people with significant control (PSCs) have their own deadlines.
You can usually verify your identity through GOV.UK One Login using an accepted form of photo identification. This includes biometric passports from any country.
If you cannot use the online service, you may be able to verify through an Authorised Corporate Service Provider (ACSP).
After verification, you receive a Companies House personal code. You may need this code when submitting company information.
Read the official Companies House identity verification guidance.
3. Your Registered Office Address Must Meet the Rules
Every UK limited company needs a registered office address in the same part of the UK where it is registered.
The address must be appropriate. This means the official post must reach someone acting for the company, and delivery must be capable of being acknowledged.
A Royal Mail PO Box cannot be used as a registered office address. Similar mailbox services may also fail to meet the requirements.
Remember that your registered office address appears on the public Companies House register. If you do not want to use your home address, you may be able to use an accountant’s or solicitor’s address with their permission.
You must also provide a registered email address to Companies House. This email address is not published on the public register.
Read the official registered office address guidance.
How to Start Your Own Company in the UK: 7 Steps
Once you understand the main requirements, you can work through the registration process.
Step 1: Choose a Company Name
Start by choosing a name that reflects your business.
Before making a final decision, check that the name is available on the Companies House register. Your company name must follow the naming rules and will usually need to end in “Limited” or “Ltd.”
Some words are restricted and may require permission before you can use them.
It is also worth checking the UK trademark register. A company name being available does not automatically mean it is free from trade mark restrictions.
Step 2: Verify Your Identity
Directors and people with significant control must follow the relevant Companies House identity verification requirements.
You can use GOV.UK One Login if you have an accepted form of identification. If you cannot use this method, check whether an authorized agent can help.
Once your identity has been verified, you will receive a Companies House personal code. Keep it safe because you may need it when filing information.
Step 3: Arrange Your Registered Office Address
Choose an appropriate physical address in the correct part of the UK.
Make sure the official company post can reach someone acting for your business and that delivery can be acknowledged.
You should also provide a registered email address. Check it regularly so you do not miss important messages from Companies House.
Step 4: Choose the Right SIC Code
A Standard Industrial Classification (SIC) code describes the activities your company carries out.
Choose the code that most closely matches your actual business activities. If your company carries out different activities, you may need more than one code.
You can find the official list in the Companies House SIC code guide.
A private limited company can have one director and one shareholder, provided it meets the legal requirements.
Step 5: Register Your Company Online
When your details are ready, use the official Companies House registration service.
You will generally need:
- Your proposed company name
- Registered office address
- Registered email address
- Director details
- Shareholder details
- People with significant control details, where applicable
- Relevant identity verification information
The online incorporation fee is £100.
Companies House says many online applications are processed within 24 hours, although processing times can vary.
Once your application is approved, you will receive a certificate of incorporation. Keep this document with your company records.
You can apply through the official GOV.UK company registration service.
Step 6: Understand Your HMRC Responsibilities
After registering your company, you need to understand your tax responsibilities.
Companies House registration will usually set up your company for corporation tax, unless it is dormant. You should still check HMRC correspondence and make sure you meet the relevant registration and filing requirements.
You may also need to consider:
Corporation Tax: Your company may need to pay corporation tax on its taxable profits and submit a company tax return.
VAT: You generally need to register if your taxable turnover goes over £90,000 in the previous 12 months, or if you expect it to exceed £90,000 in the next 30 days. Special rules can apply to businesses based outside the UK.
PAYE: If you employ staff, you may need to register as an employer and operate PAYE.
Official guidance:
- Corporation Tax
- VAT Registration
- Register as an Employer
Step 7: Consider Opening a Business Bank Account
A separate business bank account can make managing your company’s money much easier.
It helps you keep business income and expenses separate from personal spending and makes record-keeping more straightforward.
Banks have their own application requirements. If you live outside the UK, check the bank’s eligibility rules before applying.
What Does It Cost to Start a Company in the UK?
The following table shows some common registration costs in 2026.
| Cost | Amount |
| Online company incorporation | £100 |
| Digital confirmation statement | £50 |
| Sole trader registration | £0 |
| Formation agent | Depends on the provider |
The £100 incorporation fee is not the total cost of starting a business. You may also need to pay for accounting, insurance, equipment, website hosting, and other business expenses.
The £50 confirmation statement fee applies to the relevant digital filing. Check the official fee schedule before submitting your documents.
For the latest figures, visit the Companies House fees page.
Four Common Mistakes That Can Delay New Business Owners
Starting a company is easier when you prepare in advance. Here are four mistakes worth avoiding.
- Following outdated information
Company registration fees and legal requirements can change. Always check official government guidance before relying on an older article.
- Leaving identity verification until the last minute
Find out which people need to verify their identities and when their personal codes are required.
- Choosing an unsuitable registered office address
Your address must meet Companies House requirements. A basic mailbox or PO Box may not be acceptable.
- Forgetting about tax responsibilities
Keep track of your taxable turnover, Corporation Tax responsibilities and any PAYE requirements. Understanding these rules early can help you avoid unnecessary problems.
Frequently Asked Questions
How much does it cost to start a limited company in the UK?
The Companies House digital incorporation fee is £100 in 2026. Other expenses, such as accounting and insurance, may increase your overall start-up costs.
How long does company registration take?
Many online applications are processed within 24 hours. However, delays can happen if information is missing or additional checks are needed.
Can I start a UK company if I live abroad?
Yes. You do not generally have to live in the UK to become a director of a UK company. However, you must meet the identity verification requirements and provide an appropriate registered office address in the correct part of the UK.
Opening a UK business bank account may involve additional checks, depending on the bank.
Do I need an accountant to register a company?
You do not generally need an accountant just to register a company. However, limited companies have ongoing accounting and tax responsibilities. Professional advice can help you understand these obligations.
Can one person own and run a limited company?
Yes. One person can be both the sole director and shareholder of a private limited company, provided the company meets the legal requirements.
Final Thoughts
Starting your own company in the UK does not have to be as complicated as it first appears.
The important thing is to understand the requirements before you begin. Choose a suitable business structure, check your company name, arrange an appropriate registered office address and complete the necessary identity verification.
The £100 online registration fee is only the first step. You should also plan for accounting, tax responsibilities and the everyday costs of running your business.Take your time, keep your company records organised and make decisions based on your actual business needs.
When you are ready, start with the official GOV.UK company registration service.
