Company Formation · Limited Companies · Updated July 2026
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How to Form a UK Limited Company —
The Actual Process, Costs & Timeline

📅 29 July 2026 ⏱ 8 min read Editorial policy ↗

What Actually Happens When You "Form a Company"

Forming a limited company means registering it with Companies House, the UK's official registrar. Once approved, your company gets a unique company number, becomes a distinct legal entity separate from you personally, and appears on the public Companies House register. You'll need to choose a company name, at least one director, a registered office address, and decide on your shareholding structure, even if you're the only shareholder.

You can do this yourself directly through Companies House for the £50 statutory fee, or use an authorised formation agent who handles the paperwork on your behalf, checks for common rejection reasons before submitting, and typically bundles in extras like a registered office address, digital documents, and sometimes a business bank account referral.

The Timeline: Same-Day Formation Is Genuinely Possible

This is one of the most common misconceptions about UK company formation — people assume it takes weeks. In reality, if your application is complete and submitted correctly before Companies House's daily cut-off (typically 3pm on a working day), most applications are approved the same day or by the next working day. Formation agents that specialise in this process tend to have lower rejection rates than DIY submissions, since they check for common issues (name clashes, missing information, formatting problems) before the application goes anywhere near Companies House.

What You Actually Need Before You Start

  • A company name that isn't already registered or too similar to an existing one, and doesn't contain restricted words without permission
  • At least one director (must be at least 16, no upper age limit, doesn't have to be a UK resident)
  • A registered office address in the UK (this appears on the public register)
  • Shareholder details and how shares are allocated, even for single-owner companies
  • A SIC code describing what your business actually does
  • Your personal ID details for the director and shareholder verification

We've looked at the main UK formation agents on price, speed, transparency, and what happens after your company is formed (since ongoing compliance support matters more than the initial registration). Here's who we'd recommend:

Recommended Formation Agent
1st Formations

Over one million UK companies formed. Authorised Companies House agent with transparent pricing and same-day formation.

  • Company formed in as little as 15 minutes online, same-day approval before 3pm
  • Packages from a low headline price, with registered office address options included
  • Free business bank account referral options bundled into most packages
  • Ongoing compliance support (confirmation statements, registered office renewal reminders)
Form Your Company with 1st Formations →

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Frequently Asked Questions

How much does it actually cost to form a UK limited company?

The statutory Companies House fee is £50 for standard same-day online registration. Formation agents charge on top of this for handling the paperwork, registered office address, and additional services, typically ranging from around £15 to £100+ depending on the package.

How long does company formation actually take?

If you submit correctly before 3pm on a working day through an approved formation agent, most applications are approved by Companies House the same day or next working day. Filing directly yourself can sometimes take longer if there are errors in the submission.

Do I need a registered office address?

Yes, every UK limited company must have a registered office address that's a physical UK address where official mail can be sent. If you don't want to use your home address (which becomes publicly visible on the Companies House register), most formation agents offer a registered office address service.

Does forming a limited company change my MTD position?

It can. Sole traders pay Income Tax and are subject to MTD for Income Tax above the relevant threshold. Limited companies pay Corporation Tax instead, which currently has a separate digital filing framework. This is a structural decision with real consequences beyond MTD, worth reading alongside our sole trader vs limited company comparison before deciding.

Can I change my mind and go back to being a sole trader?

Yes, but it involves formally closing the company (striking it off or a members' voluntary liquidation for larger companies), which has its own process and potential tax implications. It's not a simple undo, so it's worth being confident in the decision before incorporating.

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