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Incorporation and Legal Setup
Register your company at Companies House using the online service (currently £12) or through a formation agent. Choose your Standard Industrial Classification (SIC) code carefully as it affects how HMRC and lenders categorise your business. Confirm your company name is not already registered or trademarked.
- Reserve and register your preferred company name
- Appoint at least one director (must be a natural person aged 16+)
- Issue shares and complete the statement of capital
- Appoint a company secretary if required (optional for private companies)
- Register a UK registered office address
- File People with Significant Control (PSC) register at Companies House
Tax and HMRC Registrations
After incorporation, notify HMRC that your company is active and will be liable for Corporation Tax within three months of starting to trade. This is separate from any VAT or PAYE registration.
- Register for Corporation Tax via HMRC online services
- Register for VAT if turnover will exceed the current threshold (or voluntarily if beneficial — confirm with your accountant)
- Register as an employer with HMRC if you will pay yourself or any employee a salary
- Set up a PAYE scheme and enrol in Real Time Information (RTI) payroll reporting
Banking and Finance Infrastructure
Open a dedicated business bank account in the company's name. Using a personal account for company transactions creates legal and tax complications. Compare business current accounts for monthly fees, payment processing costs, and integration with accounting software.
Consider also opening a business savings account for tax reserves, and set up online banking with dual-authorisation controls where possible to reduce fraud risk.
Accounting and Bookkeeping
Appoint an accountant or set up accounting software (or both) before your first transaction. Your statutory first accounting period ends on the last day of the month one year after incorporation. You will need to file accounts at Companies House and a Corporation Tax return with HMRC by the relevant deadlines.
- Choose accounting software or appoint a bookkeeper
- Set your financial year-end date
- Establish an invoicing and expenses policy
- Open a separate tax reserve account and set aside Corporation Tax monthly
Insurance and Contracts
Before trading, ensure you have the minimum required insurance in place. Employers' liability insurance is a legal requirement as soon as you have any employee (including in some cases a working director). Other covers depend on your business type — confirm requirements with an insurance broker.
- Employers' liability insurance (legally required if you have employees)
- Professional indemnity insurance if you provide advice or services
- Public liability insurance if customers visit your premises
- Have a solicitor draft or review your standard terms and conditions of business
Frequently asked questions
Do I need a separate business bank account for a limited company?
Yes. A limited company is a separate legal entity from its directors. Mixing company and personal funds is a serious compliance issue and can complicate your accounts and tax filings significantly.
When does my first Corporation Tax return need to be filed?
Your Corporation Tax return is due 12 months after the end of your accounting period. Payment of any tax owed is typically due nine months and one day after the accounting period end. Confirm your specific deadlines with your accountant.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.