What is company formation in the UK?
Company formation — also known as company incorporation or company registration — is the legal process of establishing a new business entity at Companies House, the UK's official register of companies. Once formed, your company becomes a distinct legal person: it can own assets, enter contracts, employ staff, and trade in its own name.
The most common structure for new UK businesses is a private limited company (Ltd). A limited company is legally separate from its owners and has its own Corporation Tax and filing obligations. Limited liability can reduce shareholders' personal exposure, but exceptions can apply, and the most suitable structure depends on the business and the people involved.
Sterling Formations is building a clearer way to understand and prepare for UK company formation. This guide explains the official process so you can make informed decisions about your company, registered office, directors, shareholders, and next steps.
What you need before you apply
Prepare the information below before starting. Companies House can reject an application when required details are missing, inconsistent, or the proposed name cannot be accepted.
- An available company name that follows the naming rules
- A registered office address in the company’s UK jurisdiction
- At least one natural-person director aged 16 or over
- Shareholder, share capital, and prescribed-particular details
- People with significant control (PSC) information
- A SIC code describing the intended business activity
- Articles of association and the required statement of compliance
- Any identity-verification information requested for the filing route
Why form a limited company in the UK?
- Limited liability may protect personal assets, subject to legal exceptions
- A separate Corporation Tax regime, which may suit some businesses
- Greater credibility with clients and suppliers
- Easier to raise investment and bring in partners
- Separate legal identity — the company owns assets, not you
- Access to more business banking products and credit
How UK company formation works
The application can be completed online, with the time required depending on your company details and the information you need to provide. Here is what happens at each stage:
1. Choose your company name
Pick a unique name that ends in "Limited" or "Ltd". Companies House checks availability during the registration process.
2. Provide director & shareholder details
Enter the required details for directors aged 16 or over, shareholders, and people with significant control. One person can hold more than one role.
3. Select your registered office
A UK address is required. This is the official address for legal correspondence.
4. Review the fee and submit
Check the current Companies House filing fee and any provider charges or partner terms before submitting accurate company information.
5. Receive your Certificate
Your application is filed electronically with Companies House. Your Certificate of Incorporation arrives after Companies House accepts the application.
Company formation costs and timing
Companies House charges a statutory incorporation fee. The amount and available filing routes can change, so confirm the current fee on the official GOV.UK service immediately before applying. A formation provider may charge a separate service fee or include optional services with recurring renewal costs.
Processing time starts after a complete application reaches Companies House. Electronic applications are generally handled faster than paper applications, but approval on a particular day is not guaranteed. Name checks, missing details, identity requirements, or a complex share structure can add time.
Review the full UK company formation cost breakdown, including ongoing filing and professional-service costs, before choosing a route.
What you receive after formation
Once Companies House approves your application, you will receive the following documents electronically:
- Certificate of Incorporation — confirming your company's legal existence and unique Company Registration Number (CRN)
- Memorandum of Association — the founding document signed by initial shareholders
- Articles of Association — the rules governing how the company is run
- Share certificates — normally prepared and issued by the company to its shareholders after incorporation
Your company is then legally registered in the UK. Tell HMRC when the company becomes active for Corporation Tax and check the applicable deadline, usually within 3 months of starting business activity. Consider whether VAT, PAYE, accounting, and record-keeping requirements apply.
Related guides
- Limited company structure — liability, ownership, and obligations
- How to set up a limited company — step-by-step walkthrough
- Registered office address — legal requirements explained
- How the formation process works
- Free Company Formation UK — costs and options explained
- Company formation costs — filing fees and ongoing expenses
Frequently asked questions
What is company formation in the UK?
Company formation (also called company registration or incorporation) is the legal process of creating a new company at Companies House, the UK government's official registrar of companies. Once formed, your company becomes a separate legal entity, distinct from its owners.
How much does UK company formation cost?
Companies House charges a fee for online incorporation, and the amount can change. Check the current fee on GOV.UK before you apply. Sterling Formations will show any service costs clearly before you proceed.
How long does UK company formation take?
Companies House processing times vary and are not guaranteed. Electronic filing can be faster than postal filing, but the certificate is issued only after Companies House accepts the application.
What do I need to form a UK company?
You need a company name, an appropriate registered office address in the UK, at least one director aged 16 or over, and details of shareholders, people with significant control, and the share structure. You also need a Standard Industrial Classification (SIC) code that describes your business activity.
Can I form a UK company if I live abroad?
Non-UK residents can be directors and shareholders of a UK limited company. However, the company must have an appropriate registered office address in the UK and may need to meet identity and verification requirements.