Simple Company Formation from £12

1. 

   Apply to Companies House

   This is the state body with the power to legally register a limited company in the UK. You cannot legally trade as a limited company in the UK until you are registered.

2. 

   Prepare your documents

   Get all your documentation and information ready. A specialist agent can help you do this easily. But if you want to do it DIY, we’ll explain the requirements in full below.

3. 

   Pay the fee to Companies House

   Once your documents are ready, you must pay an incorporation fee. Luckily, this fee is low in the UK. It is only £12.

4. 

   Setup business banking

   When you are all paid up and registered, you need to set up a business bank account. This is so you can pay people and, crucially, get paid.

1. Company name

   The first step in the company formation journey is to pick a name for your fledgling business. The name must be unique, not infringe on copyrights, or contain any banned words or sensitive terms.

   Companies House has an extensive list of what constitutes a 'sensitive term' – but, in general, these are words that imply your business is acting in some official capacity. These terms aren't banned per se, but they do need to be approved. I.e. your application may take longer.

   We have a handy name checker to help you find a suitable name.

   

2. The address of the registered office

   After that, you need to get your information ready. Companies House wants to know your registered office address, company director details, shareholder details, and your share capital information.

   For your registered address, this must be a physical address. Not a PO box. And it must be in the constituent UK country where you are registered. For example, a Scottish business must have a Scottish registered address. An English one won't do.

   

3. Detailed information about all officials

   You will also need to submit your articles of association. This document outlines the rules for the running of the company. There are model documents available online. If you don't need any peculiar adjustments, these model articles should be just fine.

   

Company formation FAQs

• What do you need to form your company?

  You need to get a few things straight. First, you need to decide whether a Limited Company or a registered Limited Liability Partnership is right for you and your business. Then, if you decide to proceed, choose a name for your business. You also need to choose directors and decide who the shareholders or guarantors are. And you also need your Articles of Association which designate how your company will operate.

• Are there any hidden costs?

  If you incorporate with Osome, what you see is precisely what you get. Our pricing is completely transparent. Any hiccups or delays to the process – although, we’re confident there won’t be any – will be included in the fee you’ve paid. No need to worry about hidden fees and extras.

• How many shares does a company need?

  Limited companies must issue a minimum of one share during the company formation process. And, of course, every shareholder must have at least one share. There is no maximum number of shares you can issue – but you don’t want to dilute ownership too much!

• Can I form a company on my own?

  Absolutely. You can set up a limited company in the UK with one person. The company formation process requires you to appoint at least one director and one shareholder. But this can be the same person. This sort of arrangement is commonplace and widely practised.

• Why should I form a limited company?

  The big reason to form a limited company is that it, as the name suggests, limits your risk. It transforms your business into a discrete entity separate from you, the individual. Whereas sole traders face unlimited liability, a limited company insulates you from risk if things do go wrong. It’s the safest, most sensible option if you want to operate your business long-term.

• How long does it take to form a company?

  If everything is managed efficiently, your company formation should be no longer than one day. Companies House commits to registering a business in 24 hours. One thing to note is that if your name contains any sensitive terms (like you suggest a link to the monarchy or government), it will need to be approved. That could draw the process out.

• Do I have to be in the UK to form a company?

  Nope. The company formation process for non-UK residents is the same for UK residents and citizens. Anyone, including foreign nationals, can become a company director or shareholder of a UK business. You don’t have to be a resident of the UK, either.

Read our articles about Company Incorporation