Set Up a Limited Company Step by Step Guide

Set up a limited company: step by step

How to set up a limited company, appoint directors and shareholders or guarantors, and register for tax.

1. Step 1 Check if setting up a limited company is right for you

   1. Check what a private limited company is How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and get funding.

Most businesses register as a limited company or a sole trader.

1. Find out about the different ways to set up a business

2. Find local advice and free support for your business on business.gov.uk

   1. ## Step 2 Choose your limited company type

3. Check whether you'll be limited by shares or guarantee

   1. ## Step 3 Choose directors and a company secretary

You must appoint a director but you do not have to appoint a company secretary.

1. Find out what directors are responsible for
2. Check who can be a director or company secretary
   1. ## Step 4 Decide who the shareholders are

You need at least one shareholder, who can be a director.

1. Check how to choose shareholders for a company limited by shares
2. Find out how dividends from shares are taxed
   1. ## or Decide who your guarantors are

You need at least one guarantor who can be a director.

1. Check how to choose guarantors for a company limited by guarantee
   1. ## and Identify people with significant control (PSC) over your company

You need to identify people with significant control (PSC) - for example, anyone with more than 25% of the shares or voting rights.

1. Find out what counts as a PSC You'll confirm these when you register your company with Companies House.
   1. ## Step 5 Prepare documents agreeing how to run your company

You need to prepare documents agreeing how to run your company. These documents include the :

• 'memorandum of association'
• 'articles of association'
• 'statement of capital'
• 'statement of guarantee'

1. Find out how to create these documents

   1. ## Step 6 Check what records you'll need to keep

2. Check the company and accounting records you must keep

   1. ## Step 7 Choose a name

3. Check the rules for company names

4. Check if the name you want is available

5. Check existing trade marks

   1. ## Step 8 Register your company with Companies House

You'll need to register an official address and choose a SIC code - this identifies what your company does.

1. Check the rules for registered office addresses and email addresses
2. Check what your SIC code is
3. Register your company with Companies House
   1. ## Step 9 Find out what to do after you've registered

There are some things you may need to do once you've registered a limited company.

1. Add Corporation Tax services to your business tax account
2. Check the next steps for your limited company