What you need before you form your limited company

There are a few things you need to prepare before you form your limited company. Use our step-by-step guide to make sure you haven’t missed anything. 

Key Takeaways

• The first step in forming a limited company is deciding on the type of company structure (limited by shares, limited by guarantee, or limited liability partnership), as this affects ownership, profit, and tax obligations.
• Your company name must be unique, comply with Companies House rules, and end with “Ltd,” “Limited,” or “LLP” depending on your chosen structure.
• Every company must appoint at least one director, and while a secretary is optional, you also need to identify shareholders or guarantors.
• You must prepare core documents such as the memorandum of association and articles of association, which set out your company’s details and governance rules.
• To register, you must provide a registered office address (which will appear on the public register) and select a SIC code that describes your business activity.
• Using a professional company formation service can help avoid mistakes, save time, and ensure your business is set up correctly from the start.

1. Choose which type of company you need. 

There are a few different types of companies’ organisational structures. Before forming your company, you need to decide which type suits you best. 

Note: All limited company types function as separate legal entities to their owners/directors etc. Unlike a ‘sole trader’ who is personally liable for their business. 

The limited company formation types are: 

• Limited by Shares
• Limited by Guarantee
• Limited Liability Partnership

How you set up as a business depends on what kind of work you do, and it affects how you get taxed and get funding. All of the above require registration with the company’s house but in terms of structure, they differ. 

Limited by shares

Most companies in the UK are limited by shares. Simply put, this company is owned by its shareholders who have certain governing rights. For example, directors can ask shareholders to vote and decide on changes to the company such as changing its ownership or business operations. Limited by share companies make profits, unlike a limited by guarantee company.

Learn more here: 

• Company Structure Explained: Private Company Limited By Shares
• What is Company Limited by shares (LTD)

Limited by guarantee 

Limited by guarantee companies are often non-profit organisations. Instead of having shareholders who profit from the company, LBG companies have one or more guarantors who put in a small investment to aid growth. 

Learn more here: 

• What is a Company Limited by Guarantee?
• 7 limited by guarantee questions answered

Limited Liability Partnership

A limited liability partnership is similar to a limited by shares company but has two or more directors. This is a popular option for law practices, accountancy firms or any business that is created by two or more people. 

Learn more here: 

• The benefits of an LLP
• Limited Liability Partnership (LLP)

2. Choose your company name

Next, you must choose an appropriate company name. The name has to be unique- it can not be the same as an existing company or trademark and it must end in Ltd or Limited or LLP depending on your company type. There are a few more rules concerning offensive words or sensitive words such as United Kingdom or Accredited which can be misleading. 

Note: Remember your registered company name can be different to your trading name. 

Get a better understanding of the rules regarding your company name. Or use our tool to check if your company name is available.

3. Choose your director and a secretary. 

Every company must have a director, who is often the business owner and founder, but you do not need to nominate a secretary. 

Anyone can be a UK Company director provided you are over 16 and you have not been declared bankrupt or banned from being a company director by a court. 

• How can I pay myself if I’m a limited company director?

4. Choose your shareholder or guarantor.

You need to have at least one shareholder or guarantor but this can be your director.  

• Can I be the only officer (Director, shareholder and PSC)?
• Adding new shareholders and shares.  

4a. Choosing a Person of significant control (PSC) 

At this step you also want to identify a PSC, a PSC is a person(s) who: 

• People who have 25% or more of the shares
• People who have 25% or more of the voting rights
• The right to appoint or remove the majority of board directors. 

Every company must hold and maintain statutory registers of information.  

From 18 November 2025, there will no longer be a requirement for companies to hold registers of:

• Directors (or the equivalent of directors)
• Directors’ (or equivalent) residential addresses
• Secretaries
• People with significant control (PSCs)

You’ll still have to register this information with Companies House and keep it up to date. Find out more.

5. Prepare your documents 

Your documents, namely your ‘memorandum of association’ and your ‘articles of association’ (M&As) need to be prepared in order to show how you plan to run your company. These documents include details like your company name and outline the responsibilities of your directors. 

Learn more:

• What are M&As?
• Post company formation, documents we provide.

6. Register your company

Finally, you’ll need to register an official address and choose a SIC code. This address will be on a public register, so you may want to consider using a registered office address service. Your SIC code identifies what your company does. 

Learn more: 

• What SIC code shall  I use? 
• What is a registered office?

This may be the longest part of the process, which can result in mistakes. That’s where we step in. As experts in company formation we can ensure that your company will be set up and running in no time. Save yourself the time and let us file for you, leaving you time to focus on the more important aspects of your business. 

Find out how we can help you form a company today. 

FAQs

What types of limited company structures can I choose from?

In the UK, you can form a company limited by shares, limited by guarantee, or a limited liability partnership (LLP) - all of which are private limited companies. Limited by shares is the most common, used by profit-making businesses owned by shareholders. Limited by guarantee is often for non-profits, while LLPs are typically used by professional partnerships such as law or accountancy firms.

What is a Limited by shares company?

Most companies in the UK are limited by shares. Simply put, this company is owned by its shareholders who have certain governing rights. For example, directors can ask shareholders to vote and decide on changes to the company such as changing its ownership or business operations. Limited by share companies make profits, unlike a limited by guarantee company.

What is a limited by guarantee company?

Limited by guarantee companies are often non-profit organisations. Instead of having shareholders who profit from the company, LBG companies have one or more guarantors who put in a small investment to aid growth.

What is a limited liability partnership (LLP)?

A limited liability partnership is similar to a limited by shares company but has two or more directors. This is a popular option for law practices, accountancy firms or any business that is created by two or more people.

How do I choose a name for my limited company?

Your company name must be unique, not too similar to existing names, and comply with Companies House rules. It must end with “Ltd,” “Limited,” or “LLP” depending on your structure. You can have a different trading name from your registered name. It’s best to use a company name checker tool before registering.

Do I need a company director and secretary?

Yes, every company must have at least one director who is responsible for running the business and complying with the law. A company secretary is optional. To qualify, directors must be at least 16 years old and not disqualified or bankrupt. In small companies, the director is often also the shareholder.

What is a Person of Significant Control (PSC)?

A PSC is someone who has significant influence over a company. This usually means holding 25% or more of shares, 25% or more of voting rights, or having the right to appoint or remove most directors. From 18 November 2025, there will no longer be a requirement for companies to hold registers of PSCs. Find out more.

What documents do I need to form a limited company?

Two main documents are required:

• Memorandum of Association – confirms the intention to form the company.
• Articles of Association – set out how the company will be run, including director responsibilities and decision-making rules.

These documents are submitted when you register the company.

How do I officially register a limited company in the UK?

To register, you’ll need to provide:

• A company name.
• At least one director (LLPs require at least two directors/partners), one shareholder/guarantor and a PSC.
• A registered office address (shown on the public record).
• A Standard Industrial Classification (SIC) code describing your business activity.

Please note: From 18 November 2025, all company officers will be required to complete an ID check with Companies House and obtain a personal code before registering a limited company.

You can register directly with Companies House or use a company formation service to save time and reduce errors.

Can I use my home address as the registered office?

Yes, but it will appear on the public Companies House register. Many business owners prefer to use a registered office address service to protect privacy, present a more professional image, and keep personal mail separate from business correspondence.