How to start a company in United Kingdom
Last checked: November 2026 · Currency: GBP
The UK is one of the fastest and cheapest places to start a company: you register a private limited company (Ltd) online with Companies House, usually within 24 hours, and no minimum capital is required. Directors must now verify their identity first. Generous investor tax reliefs (SEIS/EIS) and the EMI share-option scheme make an Ltd the standard choice for startups.
General information, not legal or tax advice. Rules and fees change; always check the official source.
Company types
| Type | Minimum capital | Liability | Best for |
|---|---|---|---|
| Ltd Private company limited by shares | No minimum (shares are often issued at £0.0001–£1 each) | Limited | Almost all startups, including teams planning to raise investment |
| LLP Limited Liability Partnership | No minimum | Limited | Professional-services partnerships; not suitable for equity investment |
Registration, step by step
- 1Agree on equity, roles and leaver termsAgree who holds which shares and what happens if a founder leaves (good/bad leaver and vesting clauses). Write this in a shareholders' agreement and, where needed, in custom articles of association.GOV.UK – Set up a limited company
- 2Choose the company type and nameFor a startup, register a private limited company (Ltd). Check that the name is free on the Companies House register.Companies House – Search the register
- 3Verify your identity and register with Companies HouseEach director verifies their identity with GOV.UK One Login to get a personal code. You then register online with the articles, shareholders, directors and people with significant control (PSCs). Registration costs £100 online and is usually done within 24 hours.GOV.UK – Register your company
- 4Open a business bank account and pay for sharesOpen a bank account in the company's name and have each founder pay for their shares. There is no minimum capital, so this is usually a small amount.GOV.UK – Running a limited company
- 5Register for Corporation Tax, PAYE and VATRegister for Corporation Tax within 3 months of starting to do business. Register for PAYE before you pay any salaries, including directors' salaries. You must register for VAT once taxable turnover passes £90,000, and you can register voluntarily before that.HMRC – Corporation Tax
- 6Prepare for investors (SEIS/EIS) and staff options (EMI)Before your first round, apply to HMRC for SEIS/EIS advance assurance so that angel investors can claim tax relief. Use EMI to give employees tax-advantaged share options.HMRC – Apply to use SEIS
- 7Register your trade markFile a UK trade mark online with the Intellectual Property Office (IPO). Registration usually takes 3–4 months if nobody objects. For EU coverage you need a separate EUIPO filing.IPO – Register a trade mark
Costs and time
| Item | Amount |
|---|---|
| Companies House incorporation (online) | £100 (paper: £124) |
| Annual confirmation statement (online) | £50 per year |
| UK trade mark (online) | £205 for one class, plus about £60 per extra class |
| Shareholders' agreement / custom articles (solicitor or template) | £0 (templates) to roughly £1,000–5,000 with a solicitor Check the official source |
| Accountant for annual accounts and Corporation Tax return | roughly £500–2,000 per year for a small company Check the official source |
How long it takes: Usually 1 day to register online after identity verification, which itself can be done the same day. Allow 1–4 weeks for a business bank account and HMRC registrations.
Taxes
| Tax | Rate | Note |
|---|---|---|
| Corporation Tax | 19% on profits up to £50,000; 25% on profits over £250,000 | Marginal relief applies between £50,000 and £250,000; thresholds are reduced for associated companies. |
| VAT | 20% standard rate | Registration is required when taxable turnover goes over £90,000 in a rolling 12 months. |
| Employer National Insurance | Charged on salaries above a threshold | Applies once you pay salaries through PAYE, including directors' salaries; rates change often, so check GOV.UK. Check the official source |
Protect your name
TrademarkUK Intellectual Property Office (IPO); EUIPO for the EU (separate)from £205 online (one class); about £60 per extra class (fees rose on 1 April 2026) Trademark officeTrademark basics →
PatentUK Intellectual Property Office (IPO), or the European Patent Office for wider coveragePatent officePatent basics, and when not to bother →
Tips for co-founders
- Founder vesting is usually done through 'leaver' clauses in the shareholders' agreement or articles (e.g., unvested shares can be bought back at nominal value), not US-style restricted stock.
- Share transfers don't need a notary: you use a stock transfer form, update the register of members and, in some cases, pay stamp duty.
- Keep founder shares at a very low nominal value (e.g., £0.0001) so that founders pay little for them and future share issues stay flexible.
- Get SEIS/EIS advance assurance before taking angel money; many UK angels won't invest without it.
- Since 2025, every director and person with significant control must verify their identity with Companies House, so do this early.
- Shareholders and PSCs are public on the Companies House register.
Official links
General information, not legal or tax advice. Rules and fees change; always check the official source. Last checked: November 2026.