General-information notice: This article is general UK information, not personal legal, tax, accounting or financial advice. The right structure and tax outcome depend on your circumstances, profits, other income, plans and the rules in force. Consider advice from a qualified accountant or solicitor before incorporating, issuing shares, taking dividends, entering contracts or relying on tax planning.
Current Tide offer: up to £200 and company formation advertised at £14.99
If you are forming a company and want to compare the cost of the registration route, Refer & Save currently lists a Tide referral offer for eligible new customers. Use the Tide REFER200 referral route before applying. The live offer states that eligible applicants can unlock up to £200 in two parts: £75 after completing £100 of qualifying Tide card transactions within 30 days, plus £125 after depositing £5,000 into a Tide Instant Saver within 7 days and holding it for 30 days. The conditions, eligibility, approval, payment timing and availability are controlled by Tide’s current terms.
The same Tide journey is advertised as offering company formation for £14.99, compared with the £100 online Companies House incorporation fee stated on GOV.UK. Treat the £14.99 figure as a current provider price to verify in the Tide journey before payment, not as a replacement for the legal Companies House process or a guarantee that every applicant will qualify. Compare the total price, inclusions, renewal or add-on charges, registered-office arrangements and any separate official or professional costs before choosing a formation service.
| Part of the opportunity | What to check |
|---|---|
| Company formation | Tide’s advertised formation price of £14.99, what the package includes, and whether any optional or recurring services are added. |
| First reward stage | £75 after £100 of qualifying Tide card transactions within 30 days. |
| Second reward stage | £125 after depositing £5,000 into a Tide Instant Saver within 7 days and holding it for 30 days. |
| Official registration cost | GOV.UK currently states £100 for online incorporation through Companies House; verify the live fee immediately before applying. |
Do not spend or deposit money solely to chase the headline reward. The Tide conditions may not suit every new company, and a company formation provider does not remove the need to choose directors, shareholders, a PSC, a registered office, a SIC code and suitable articles. Read the current Tide referral terms and the formation checkout before committing.
Summary: what setting up a company involves
A private limited company is legally separate from its owners. It can offer a practical structure for a growing business, shared ownership or retained business funds. It also normally limits shareholders’ responsibility for company debts to the amount invested. It does not remove every personal risk, and it brings formal records, annual filings and director duties.1
For a standard online application, Companies House currently states an official incorporation fee of £100 and says a company is usually registered within 24 hours. A postal application is stated to cost £124 and take 8 to 10 days. Those are published fees and typical processing information, not a guaranteed result or timetable.2 Verify the live GOV.UK fee, process and availability immediately before publishing or applying.
In 2026, incorporation also requires preparation for identity verification. Relevant directors and people with significant control (PSCs) need to understand the Companies House personal-code process. A form can be completed quickly once everything is ready, but the decisions behind it should not be rushed.
| Essential point | What it means |
|---|---|
| Legal status | The company is separate from its shareholders and directors.1 |
| Online incorporation | £100; Companies House says registration is usually within 24 hours.2 |
| Identity verification | A verified person receives an 11-character personal code that belongs to them, not the company.3 |
| Registered office | A physical, appropriate UK address in the same jurisdiction as the company; it is public.4 |
| Ongoing compliance | Annual accounts, a Company Tax Return and a confirmation statement have separate deadlines.5 |
Sole trader or limited company?
The decision is about business structure and administration, not a one-click tax saving. A sole trader and their business are not separate legal entities. A company is. This affects contracts, banking, records, ownership and who may bear legal and financial responsibility.
| Consideration | Sole trader | Private limited company |
|---|---|---|
| Legal identity | The owner and business are not separate legal entities. | The company is a separate legal entity.1 |
| Liability | The owner has unlimited liability for business debts. | Liability is generally limited to the owner’s investment, although personal guarantees, misconduct and other obligations can create personal exposure.1 |
| Starting out | Trading can generally start without incorporation. Self Assessment registration is required if self-employed income exceeds £1,000 in a tax year.7 | The company must be incorporated and provide statutory information before trading as that company.1 |
| Tax position | The proprietor reports business profit through Self Assessment. | The company pays Corporation Tax on profit; tax may also arise when money is taken from it.1 |
| Administration | Usually less formal. | Company records, annual accounts, a confirmation statement and a Company Tax Return are required.1 6 |
| Ownership | No shares to issue. | Shares can allocate ownership, voting rights and distributions. |
A company can suit owners who need a separate business vehicle, shared ownership, retained funds or a share structure. It can be disproportionate for a simple, low-risk activity. Do not assume it automatically reduces overall tax; the answer depends on profits, other income, payments from the company and current rules.
Identity checks and Companies House personal codes
Identity verification is a legal requirement intended to confirm the identity of people who set up, run, own or control a UK company. Directors, PSCs and Authorised Corporate Service Providers (ACSPs) are among those covered. In most cases, a person verifies once and then uses that verified identity for relevant roles.8
Verification can be completed through GOV.UK One Login, which Companies House says is free, or by an ACSP, such as an eligible accountant or solicitor. An ACSP may charge. Follow the live Companies House instructions; Companies House says not to post or email identity documents for this purpose.8
After successful verification, the person receives an 11-character Companies House personal code. It belongs to the individual, not to a particular company, and is generally reused for relevant roles. Keep it secure and share it only with people trusted to file on your behalf. Companies House has a route to replace a code believed to be compromised.3
For a new company, check the live registration journey. It may require each director’s personal code. A PSC commonly has more than 25% of shares or voting rights, can appoint or remove a majority of directors, or exercises other significant influence or control.2 Seek advice for a complicated ownership chain or agreement.
What to decide before applying
Most commercial start-ups use a company limited by shares. It needs at least one director and at least one shareholder; one person can hold both roles. A private company does not have to have a company secretary. Directors must be 16 or over and need not live in the UK, but the company must have a UK registered office.10
Decide the directors, shareholders and PSCs before applying. Agree shares, their nominal value, voting rights and ownership. The documents include a memorandum, articles and statement of capital. Multiple owners, different share rights or future investment need careful consideration.2
Choose a company name that meets the rules. Check Companies House name availability and relevant trade marks before committing to branding. A Companies House search is not trade-mark clearance or a guarantee that the name is safe to use in every market. You will also choose a SIC code, which describes the company’s activity on the public record.4
Your registered office is a public compliance address
Every company must give Companies House a registered office address and registered email. The office must be physical, in the UK and in the same country as the company’s registration. It must be “appropriate”: the company or its agent must be made aware of delivered post, and delivery must be capable of acknowledgement. A Royal Mail PO Box, or a similar service, cannot be used.4
The registered-office address is public. Using a home address is therefore a privacy decision, not just an administrative convenience. A suitable accountant, solicitor or address-service provider may be an alternative if it meets the official test and permission has been obtained. The registered email must be monitored, but is not placed on the public register.4
Step-by-step checklist: set up the company properly
This checklist is for a straightforward private company limited by shares. A charity, regulated business, complex group or unusual ownership may need a different process and advice.
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Decide whether incorporation is appropriate. Compare liability, administration, ownership and tax with operating as a sole trader. Take advice if the reason is mainly tax.
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Verify the relevant individuals. Each proposed director should complete identity verification by the appropriate route, obtain their personal code and keep it secure. Identify every PSC at the same time.3
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Set ownership and appointments. Confirm the director(s), shareholder(s), shares, voting rights and PSC information. With more than one owner, consider whether a shareholders’ agreement is needed.9
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Check the name, activity and documents. Search the proposed name and relevant trade marks, choose an accurate SIC code, and ensure the memorandum, articles and statement of capital fit the structure.2
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Arrange the registered office and email. Confirm the address is appropriate, official post will be acted on and everyone understands the public-address implications.4
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Complete the official registration. Use the Companies House-linked service or another appropriate route, provide personal codes and PSC details when required, and pay the official fee. The certificate of incorporation confirms legal existence and gives the company number and formation date.2
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Separate money and records immediately. Use an account suitable for company transactions and retain invoices, receipts, expenses, contracts, decisions and payroll information.11
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Complete HMRC and operational registrations. When trading, add Corporation Tax services to the business tax account using the company number, UTR and business start date. An online incorporation is usually set up for Corporation Tax at the same time unless dormant, but check the account position. Assess PAYE if employing staff and assess VAT registration.2
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Calendar recurring duties. Record the accounting reference date, accounts and tax deadlines, and confirmation-statement review date. Save Companies House and HMRC correspondence securely.5
First-year costs: fixed fees and variable spending
The formation fee is only part of the cost. The table separates published official charges from costs that vary by business and provider. It deliberately does not estimate commercial prices for accountancy, banking, software, insurance or address services. Verify current provider terms, eligibility, renewals, cancellation terms and charges before publishing or buying.
| Cost area | Published position | Budgeting treatment |
|---|---|---|
| Online incorporation | £100 official Companies House fee.2 | A fixed formation cost, subject to a final live check. |
| Postal incorporation | £124; stated processing time 8 to 10 days.2 | An alternative route, not an extra charge to online incorporation. |
| Identity verification through GOV.UK One Login | Companies House says this route is free.8 | An ACSP may charge for its service. |
| Confirmation statement | £50 online or £110 by post.6 | A recurring Companies House cost. The first payment may fall after the first 12 months. |
| Accountant, payroll, tax or secretarial support | Provider-specific; no universal price. | Obtain a written scope and ongoing price. |
| Registered office, software, banking and insurance | Provider- and business-specific. | Compare need, renewals, eligibility and service limitations. |
| Taxes | Depends on activity, profits and payments. | Treat tax liabilities separately from formation fees. |
The narrow known subtotal for online incorporation plus one online confirmation statement is £150. This is an illustration based only on the official charges above, not a complete first-year cost or a quote. It excludes taxes and variable services, and the confirmation-statement fee may be due after the first anniversary.2
What you must do after incorporation
Accounts, Company Tax Returns and confirmation statements
After its financial year end, a private company prepares statutory accounts and a Company Tax Return. Accounts normally include a balance sheet, profit and loss account, notes and, except for a micro-entity, a directors’ report. Smaller or dormant companies may be eligible for simpler filings, but the conditions should be checked rather than assumed.13
| Obligation | Official deadline |
|---|---|
| First accounts to Companies House | 21 months after incorporation.5 |
| Later annual accounts to Companies House | 9 months after the company financial year ends.5 |
| Corporation Tax payment, or notification that none is due | 9 months and 1 day after the Corporation Tax accounting period ends.5 |
| Company Tax Return | 12 months after the Corporation Tax accounting period ends.5 |
| Confirmation statement | At least every 12 months; file up to 14 days after the review period ends.6 |
First accounts often cover more than 12 months, while a Corporation Tax accounting period cannot. This can mean two Company Tax Returns and two payment deadlines for the first accounts period.14
A confirmation statement is an annual check of information held at Companies House. It covers the registered office, directors, shareholder and capital information, SIC code and PSCs. It is not a substitute for reporting other changes when they happen.6
VAT, PAYE and records
A business must register for VAT if taxable turnover exceeds the applicable threshold in the previous 12 months or is expected to exceed it in the next 30 days. GOV.UK currently states the threshold as £90,000; voluntary registration may be possible below it. Rules can change, so use live HMRC guidance, particularly for exempt or international supplies.15
If the company pays employees, it must address PAYE and workplace-pension duties. Payments to directors should be recorded on the correct basis, such as salary, dividends, expense reimbursement or loans. These categories have different legal and tax implications.
Keep company and accounting records: ownership and decision records, money received and spent, assets, debts, invoices, receipts, bank statements and calculations. HMRC says records generally must be retained for six years after the relevant financial year, sometimes longer.11
Directors remain responsible
Directors must follow the articles, keep records, prepare accounts, file returns, report required information, manage relevant conflicts and pay Corporation Tax. An accountant, bookkeeper or secretary can undertake work, but cannot remove the directors’ legal responsibility for records, accounts and performance.1
Late or inaccurate compliance can have serious consequences. Companies House says failure to file a confirmation statement can lead to a fine of up to £5,000 and strike-off action. HMRC can penalise late filings, poor records can lead to a fine or disqualification, and identity-verification failures can be offences. Review a compliance calendar at least quarterly.6 11
Frequently asked questions
Can I set up a limited company in five minutes?
You may submit a simple online form quickly once decisions and checks are complete. That is not guaranteed registration. Companies House says online registration is usually within 24 hours, but identity verification, documents, name review or a query can add time.2
What is a Companies House personal code?
It is an 11-character code issued after identity verification. It is unique to the person, not the company, and confirms verified status for relevant director and PSC roles. Keep it secure.3
Do I need a company secretary?
No. A private limited company needs at least one director but does not need a company secretary. Appointing one does not transfer directors’ responsibilities.10
Can I use my home as the registered office?
A qualifying home address can be used, but it is publicly displayed and must meet the appropriate-address requirements. Consider a permitted alternative if public visibility is unsuitable.4
Does a limited company automatically save tax?
No. The company’s Corporation Tax and the individual’s tax on money taken from it must both be considered. The answer is personal and changes with the facts and rules; seek advice before incorporating primarily for tax reasons.1
Final pre-submission check
Before submitting, confirm the structure is justified, identity and PSC requirements are met, ownership is agreed, the name and SIC code are checked, the registered office is appropriate and the documents fit the plan. After incorporation, separate company money, activate HMRC services when trading starts, assess VAT and PAYE, and calendar all deadlines.
A limited company can be a practical structure, but it is an ongoing legal commitment rather than a one-off form. Setting it up correctly is usually more valuable than making the application artificially fast.
References
- Tide REFER200 referral offer — current reward route and formation journey; check eligibility and live terms before applying.
- Tide referral terms — qualifying actions, exclusions and payment conditions.
- GOV.UK: Set up a private limited company — incorporation requirements and official guidance.
- GOV.UK: Register your company — official Companies House fees and registration process.
- GOV.UK: Verifying your identity for Companies House — identity-verification requirements.
- GOV.UK: Companies House personal codes — how personal codes work and should be protected.
- GOV.UK: Registered office address rules — public-address and appropriateness requirements.
- GOV.UK: Confirmation statement — recurring company filing obligations and fees.
