How Long Does it Take to Set Up a Limited Company?

Starting your own business can be one of the most rewarding experiences, and it often begins with a simple step: setting up a limited company.

If you’re wondering how long this process takes, you’re not alone. The time frame can vary depending on several factors, but with the right approach, you can complete it quickly and without any hassle.

In this guide, we’ll walk you through the process, offer tips to speed things up, and help you avoid common pitfalls, so keep reading if you're looking to set up a company in the UK.

Fastest Way to Register Your Limited Company

Registering a limited company can be done in just a few hours, especially if you use an online service from trusted professionals like us, Companies Made Simple. Online company formation services simplify the process of registering a company.  Secondly, these services also ensure that your application is completed correctly the first time, which saves you time and stress. Each step of the company registration process can be simplified with a formation agent!

Here are the steps you need to follow to form your company quickly:

Choosing a Company Name

The first step in forming a limited company is selecting a unique name. This can be one of the quicker steps if you have a name in mind. However, you must make sure that the name you want is not already in use and meets the legal requirements. You can use an online tool, such as our company name checker, to check the availability of your desired company name. This tool lets you know straight away if your name is available for use!

This task can take anything from a few minutes to an hour, depending on whether you have a name ready to go. Naming your company is an important step, so make sure you spend some time thinking about the perfect company name.
 

Preparing Necessary Documents

Next, you’ll need to prepare your essential documents, including the Memorandum of Association and Articles of Association. These documents outline the structure and purpose of your company.

For example, a Memorandum of Association will outline your company’s name, registered office, purpose and share capital. A company’s Articles of Association outline the rules for running the company, agreed upon by the shareholders or guarantors. Memorandum and Articles of Association (M&As) are necessary when forming a company.

Prepping your M&As can take anything from a few hours to a day, depending on whether you use templates or create these documents from scratch. If you form a company with us, you can use our standard M&A templates which suit most new businesses. Cutting this task time down to a few minutes.

Registering with Companies House

Once your documents are ready, the next step is to register with Companies House. If you form with us, this means filling in your full details and uploading a valid ID and proof of address. Online registration is the quickest method, often completed within 48 hours, depending on your ID and personal details.

Remember mistakes cost time! So make sure you have followed the step-by-step instructions to form your company on time and quickly.

Providing Director and Shareholder Information

You’ll need to submit details of the company’s directors and shareholders, including their full names, addresses, and other personal information. In order to prevent delays, make sure you enter the details right the first time.

This step can take anything from 10-30 minutes, depending on whether you have the details on hand and ready to go.

Don’t forget: your director’s service address will be public. If you are running your business from home, you may want to consider using our Registered Address Service.

With Companies MadeSimple, your director’s service address is included in our Registered Office Address service. This means you won’t pay twice to use the same address and your address details are protected with just one package!

Filing a Confirmation Statement

After registering, you must file a confirmation statement annually. This step doesn’t affect the initial registration time, but it’s essential to maintain the company’s active status. You’ll have to file your confirmation statement every year, or every time your company details change. You can opt for a service to help you file your confirmation statement and minimise mistakes.

Doing the Application Right the First Time

When registering a company online speed can be crucial, but accuracy is equally important. Here are some common mistakes people make during the application process and tips on how to avoid them:

Incorrect or Incomplete Information

If you have errors in the information provided to Companies House, such as incorrect addresses or misspelt names, this can lead to delays. Make sure you double-check all the details before submission.

However, another benefit of registering with us is that if you make a mistake just give us a call as soon as possible and we can amend it for you!

Choosing an Unavailable Company Name

If the name you choose is already in use or too similar to an existing company, your application will be rejected. This can delay your application by days- especially if you need to think of a new name! Instead, you can use our name availability checker to avoid this issue before you register.

Errors in Director and Shareholder Details

Incorrect details about directors or shareholders can cause your application to be rejected. All of your director’s and shareholder’s information must be accurate and up to date before you submit. If you form with us rather than directly, we can amend any mistakes last minute, saving you time and money.

Incorrect Share Allocations

Incorrectly allocating shares or failing to document share structures properly can delay the process. It’s important to get this right from the start. By default, we recommend one 1 share per shareholder and keeping one share worth £1. Unless you’ve been advised otherwise by a professional. 

Incomplete or Incorrect Address Information

Providing incorrect or incomplete address information can also result in delays. Make sure that the registered office address and directors’ residential addresses are accurate. By paying attention to these details, you can avoid common mistakes and get your application processed smoothly.

Application Delays or Rejections

Even with the best intentions, applications can sometimes be delayed or rejected. Here are some common reasons why this happens:

Incomplete Information

Your application could be missing critical details, such as director information or your registered office address. This is an extremely common reason for delays or rejections. Before submitting, make sure that all the required information is included in your application.

Errors in the Application

Any kind of typing error, incorrect spelling, or wrong information can lead to rejections. Take some time to review your application or ask someone to look it over and check for easy mistakes!

Issues with the Company Name

Choosing a name that is already in use or doesn’t comply with naming regulations can result in rejection. Double-check the company naming rule set out by Companies House before committing to a name. Finally, use a name checker tool to confirm the availability of your chosen name.

Inaccurate Address Information

Providing an incorrect or incomplete registered office address or service address can delay your application. Make sure your information is correct and you have permission to use this address! 

• Registered Office vs Service Address.

Share Allocation Mistakes

Misallocating shares among shareholders or failing to document the share structure properly can cause delays. So, double-check your share allocations before submitting the application. If you’re in doubt you can contact us, Companies MadeSimple, and we can take you through the process step-by-step.

If your application is rejected, you will receive a notification detailing the reason, i.e. an incorrect registered office address. The easiest way to fix the issue is to correct the errors outlined and resubmit the application.

Fixing mistakes or rejections can lead to additional costs and time delays, and may potentially push back your business’ start date.

If you’re hoping for a pain-free, speedy application process we recommend opting for a company formation agent like us! Not only can we catch any mistakes before sending your application to Companies House but we can provide you with additional support throughout the application process.

Set up a Limited Company with Companies MadeSimple

Setting up a limited company doesn’t have to be a lengthy process. By being thorough in your preparation and understanding the registration process, you can complete it efficiently and with minimal delays. Remember, using a professional service like Companies MadeSimple can speed the process up. A formation agent can make sure that your application is accurate and submitted correctly the first time, saving you time and effort.

Starting your business is an exciting adventure—by knowing what to expect, you can make the process of setting up your limited company smooth and swift.