How do I set up a limited company?

Question

I have been freelancing and want to set up a limited company to run my business through. What are the actual steps, and is there anything I have to keep doing once it is set up?

Carter Cooper · Accepted Answer

Setting up a private limited company in the UK is done by registering, or incorporating, it with Companies House, which can be completed online. You choose a company name that is available and not too similar to an existing one, appoint at least one director, have at least one shareholder, provide a registered office address, and adopt the company's constitution, which is the memorandum and articles of association. You will also give a code describing your business activity. Once incorporated, the company is a separate legal entity from you, which is one of the main attractions, but that separation brings duties. You will need to register the company for corporation tax, and depending on turnover you may also need to register for VAT and, if you take on staff or pay yourself a salary, run payroll.

Miles Ward · Answer

The ongoing obligations are important to plan for. Every year the company must file annual accounts and a confirmation statement with Companies House, and file a corporation tax return with HMRC and pay any tax due. Directors have legal duties to act in the company's best interests and keep proper records. Because getting the tax and structure right from the start saves trouble later, many people set up the company themselves but use an accountant for the ongoing filings. This is general guidance rather than advice on your specific circumstances.

How do I set up a limited company?

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