A Practical Guide to Setting Up, Registering and Structuring a UK Company

Company formation is often treated as a straightforward registration exercise. In practice, the decisions made before incorporation can influence ownership, governance, taxation, compliance and future expansion. The scale of the UK corporate environment demonstrates the continuing importance of getting these foundations right. At 31 March 2026, the Companies House register contained 5,479,045 companies, while 815,277 companies were incorporated during the financial year 2025–26. Private limited companies accounted for more than 95% of corporate bodies on the register.

1. What is the most common UK company structure?

For many commercial ventures, a private company limited by shares is the conventional structure.

It provides a separate legal identity from its shareholders and limits members’ liability to the amount unpaid on their shares, subject to the applicable legal framework.

However, entrepreneurs should consider whether a limited company, LLP, partnership or another structure is appropriate before proceeding.

2. How many directors and shareholders are required?

A private limited company must have at least one director and one shareholder.

The same individual can generally be both. At least one director must be an individual (a natural person) rather than a company.

A private company does not ordinarily require a company secretary, although some businesses appoint one to support corporate administration. Directors remain legally responsible for the company’s statutory obligations.

3. What information is required for incorporation?

Companies House requires information including the proposed company name, registered office, registered email address, SIC code, directors, shareholders and People with Significant Control.

A PSC will commonly include an individual holding more than 25% of the shares or voting rights, although other forms of control can also create PSC status.

The company also requires constitutional documentation, including its memorandum and articles of association.

4. How much does UK company formation cost?

The current Companies House online incorporation fee is £100, and GOV.UK states that online applications are usually registered within 24 hours.

A paper application currently costs £124. A same-day incorporation service is also available through software filing for £156.

The registration fee, however, should not be confused with the wider cost of establishing and maintaining a compliant business.

Accounting, tax, insurance, legal documentation, registered-office arrangements, payroll and regulatory obligations may create additional expenditure.

5. Do directors need identity verification?

Yes. Companies House introduced identity verification as a legal requirement on 18 November 2025 under the Economic Crime and Corporate Transparency Act 2023.

Where applicable, directors need to verify their identity and obtain a Companies House personal code.

PSC identity verification requirements also apply according to the relevant statutory timetable.

6. What is a registered office?

Every company must maintain an appropriate registered office address in the same UK jurisdiction in which it is registered (England and Wales, Scotland or Northern Ireland).

For example, a company registered in Scotland must have its registered office in Scotland.

The address is publicly available, and a Royal Mail PO Box cannot be used as the registered office.

7. What happens after incorporation?

Incorporation is the beginning of the compliance cycle, not its conclusion.

Directors must maintain appropriate company records and deal with statutory filings, including annual accounts and confirmation statements.

Depending on the company’s activities, Corporation Tax, VAT, PAYE, employment, data protection and sector-specific regulatory obligations may also arise.

Company Formation Checklist

Before registering, consider:

* Appropriate company structure

* Company name and trade mark considerations

* Directors and shareholders

* PSC identification

* Share capital and ownership percentages

* Articles of association

* SIC code

* Registered office

* Registered email address

* Companies House identity verification

* Corporation Tax and VAT position

* Accounting and record-keeping arrangements

* Employment and PAYE requirements

* Commercial contracts

Get in touch at www.stconsultancies.co.uk to discuss your requirements.

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