Starting a private limited company in 2026 means registering your business with Companies House before you trade. In most cases, you will need to choose a company name, appoint at least one director, provide a registered office address, prepare your company documents and complete identity verification before submitting the application online. Registration now costs £100 online and most companies are approved within 24 hours.
Key takeaways:
- You must register before your company starts trading.
- Every director may need to complete identity verification first.
- Your company name must be unique and follow Companies House rules.
- You need a UK registered office address and company email address.
- Most businesses register as a company limited by shares.
- Online registration is quicker and cheaper than paper filing.
- After approval, you receive a certificate of incorporation and your company number.
What Does It Mean to Register a New Company With Companies House in 2026?
Registering a new company with Companies House means creating a separate legal business entity that exists independently from you. Once registered, your company can trade, enter contracts, open a business bank account and pay tax in its own name.
In 2026, most new businesses register as a private limited company. This gives you limited liability, which means you are usually only personally responsible for debts up to the value of your investment in the business. If the company runs into financial problems, your personal finances are normally protected.
When you register, Companies House records important details about your business, including:
- Company name
- Registered office address
- Directors
- Shareholders or guarantors
- People with significant control
- Nature of the business through a SIC code
You must also provide a memorandum of association and articles of association. Once approved, Companies House issues a certificate of incorporation, confirming that your company legally exists.
Why Should You Choose a Private Limited Company Instead of a Sole Trader or Partnership?
A private limited company is often the best option if you want your business to look more professional, protect your personal finances and make future growth easier.
Unlike a sole trader or partnership, a limited company is legally separate from you. This means the company owns its money, debts and contracts. If something goes wrong, your personal liability is usually limited.
Many UK business owners choose a limited company because it can:
- Protect personal savings and property
- Improve credibility with customers and suppliers
- Make it easier to apply for loans or investment
- Allow you to bring in shareholders later
- Create more tax planning options through salary and dividends
As one business formation adviser explained, “Businesses registered with Companies House benefit from limited liability, easier access to credit, more flexibility in raising capital, and enhanced credibility. Our fees remain low by international standards.” This reflects why many new founders move away from sole trader status once they begin growing.
A sole trader structure is simpler and cheaper, but you remain personally responsible for business debts. A partnership spreads responsibility between two or more people, but each partner may still be personally liable.
If you expect to employ staff, raise money or build a long-term brand, a private limited company is usually the safer and more flexible choice.
What Type of Limited Company Should You Register in 2026?
Before you register, you need to decide which type of limited company suits your business. In the UK, there are two main options: a company limited by shares and a company limited by guarantee.
Most new businesses choose a company limited by shares because they want to make a profit. However, charities, clubs and non-profit organisations often choose a company limited by guarantee instead.
Should You Choose a Company Limited by Shares?
A company limited by shares is the standard structure for most small businesses, freelancers, agencies and online companies.
This type of company has shareholders who own part of the business. The shareholders can also be directors. If you are starting alone, you can own 100% of the company and be the only director.
With this structure:
- The business can raise money by issuing shares
- Shareholders can receive dividends
- Liability is limited to the value of the shares owned
- You can have one or many shareholders
Most companies start with:
- One ordinary share
- A value of £1 per share
- One shareholder who owns the entire business
For example, if you create a marketing agency and issue one £1 share to yourself, your maximum shareholder liability is only £1.
A shareholder who owns more than 25% of the shares or voting rights is classed as a Person With Significant Control (PSC). You must declare this during registration.
Many advisers recommend this structure because it is simple and flexible. One company formation guide said, “A company can have one shareholder who owns the whole company and acts as its only director.” That makes it ideal if you are starting a business on your own.
When Is a Company Limited by Guarantee the Better Option?
A company limited by guarantee is usually better if your organisation is not designed to make a profit for owners.
This type of company is commonly used for:
- Charities
- Community groups
- Sports clubs
- Residents’ associations
- Membership organisations
Instead of shareholders, the company has guarantors. Each guarantor agrees to contribute a small amount, often £1, if the company closes and cannot pay its debts.
Key differences include:
- There are no shares
- Profits are usually reinvested into the organisation
- Guarantors do not normally receive dividends
- Liability is limited to the guaranteed amount
For example, if you are setting up a local community charity, you may choose a company limited by guarantee with one guarantor agreeing to contribute £1.
This structure gives legal protection while making it clear that the organisation exists to support a purpose rather than generate profit.
What New Companies House Rules and Identity Checks Apply in 2026?
The biggest change in 2026 is the introduction of mandatory identity verification for directors and some people involved in company registration.
Before registering, directors may need to verify their identity using GOV.UK One Login. After verification, they receive a personal code which must be entered during the registration process. If your company has more than one director, each director needs their own code.
The new rules are part of the Economic Crime and Corporate Transparency Act, which is designed to reduce fraud and make company information more reliable.
The main 2026 requirements include:
- Identity checks for directors and PSCs
- A unique personal code after verification
- A valid registered office address
- A company email address
- Stricter checks on false or misleading information
Companies House is also reviewing company names, addresses and director details more carefully than before.
One adviser warned, “Rejected registrations are not uncommon, and reasons for rejection can include your company name already being taken, missing information or incorrect details.” Small mistakes can now cause longer delays because applications face more checks.
If you verify your identity early and prepare all details before you begin, the registration process is usually much faster.
How Do You Choose a Company Name That Companies House Will Accept?
Choosing the right company name is one of the most important parts of registering your business. Your name affects your brand, your website and whether Companies House accepts your application.
A good company name should be memorable, easy to spell and available to register. It must also follow legal naming rules.
In most cases, a private limited company name must end with:
- Limited
- Ltd
If your company is registered in Wales, you may also use the Welsh versions “Cyfyngedig” or “Cyf”.
How Can You Check If Your Company Name Is Already Taken?
Before applying, you should search the Companies House register to see whether another company already uses the same or a very similar name.
Your name cannot be identical to an existing company. It also cannot be so similar that it may confuse customers.
For example, if “Green Leaf Digital Ltd” already exists, Companies House may reject:
- GreenLeaf Digital Ltd
- Green Leaf Digitals Ltd
- Green Leaf Digital UK Ltd
You should also check:
- Domain name availability
- Social media usernames
- Existing UK trade marks
A company formation adviser explained, “One of the easiest ways to check if your potential business name is already in use is to use an advanced name searcher, which scours through records to ensure that your business name is good to go.”
Checking all of these before you apply can save time and prevent a rejected application.
What Company Name Rules, Sensitive Words and ‘Too Similar’ Restrictions Must You Follow?
Companies House will reject a company name if it breaks naming rules.
Your company name must not:
- Be offensive
- Suggest a false connection with the government
- Include a restricted or sensitive word without permission
- Be too similar to another registered company
Examples of sensitive words include:
- Accredited
- British
- Authority
- Royal
- Government
If you want to use one of these words, you may need written approval from the relevant authority before you apply.
Companies House also checks for “same as” and “too like” names.
“Same as” means only small differences exist, such as:
- Punctuation
- Symbols
- Spacing
- Similar-looking words
For example, “Hand’s Ltd” is treated the same as “Hands Ltd”.
“Too like” means a reasonable person could mistake your company for another business. For example, “EZ Electrix 4U Ltd” could be considered too similar to “Easy Electrics For You Ltd”.
As one formation guide warned, “Your name can’t be marginally different to an existing business. If you do not check that your business name follows these rules and go ahead with the name, you may breach a trademark and be required to change your business name and even pay damages.”
Can You Use a Different Trading Name Instead of Your Registered Company Name?
Yes. You can use a different business or trading name while keeping your registered Companies House name.
For example, your registered company could be:
- Smith Consulting Services Ltd
But you might trade publicly as:
- Smith Digital
This can help if you want a shorter or more marketable brand.
However, your trading name must still follow certain rules.
It cannot:
- Include “Ltd”, “Limited”, “LLP” or “plc”
- Use restricted words without permission
- Copy another business or trade mark
Your registered company name still appears on legal documents, invoices and Companies House records, even if you trade under a different name.
What Information Do You Need Before You Register a New Company?
Before you begin the application, gather all the information you need in advance. This makes the process much quicker and reduces the risk of rejection.
You usually need:
- Your chosen company name
- Registered office address
- Company email address
- Director details
- Shareholder or guarantor details
- Identity verification code
- Nature of the business using a SIC code
- Details of your shares or guarantees
- Articles of association
You may also need:
- Passport or driving licence details for verification
- National Insurance number
- Personal code from Companies House
If you are registering a company limited by shares, you must decide how many shares to issue and who owns them. If you are registering a company limited by guarantee, you need the guarantors and their guaranteed amount.
Preparing everything first usually means you can complete the online form in less than an hour.
Who Can Be a Director, Shareholder or Person With Significant Control?
Every private limited company must have at least one director. A director must be at least 16 years old and must not be disqualified from acting as a director.
The director does not need to live in the UK, but the company must have a UK registered office address.
A shareholder owns some or all of the company. In a small business, the director and shareholder are often the same person.
You can have:
- One director and one shareholder
- Multiple directors and shareholders
- A single person acting as both
A Person With Significant Control, usually called a PSC, is someone who:
- Owns more than 25% of shares
- Controls more than 25% of voting rights
- Has significant influence over the company
You must tell Companies House who your PSCs are when registering.
The following details become publicly available:
- Director name
- Service address
- Month and year of birth
Home addresses are normally protected, although they still need to be provided privately. If you appoint a company secretary, remember that this role is optional for a private limited company.
What Registered Office Address and Email Address Do You Need?
Every company must provide a registered office address and a company email address during registration.
The registered office address must:
- Be a physical UK address
- Be in the same country where the company is registered
- Receive official post from Companies House and HMRC
You cannot use a PO Box on its own. The address must be appropriate, meaning someone can receive and respond to official letters there. Because the address becomes public, many business owners avoid using their home address.
Instead, they use:
- An accountant’s address
- A solicitor’s address
- A registered office service
Your company email address does not appear on the public register, but Companies House uses it to send reminders and notices. If you use the wrong address, Companies House may reject the application or even remove the company later if the address is not suitable.
What Documents Must You Prepare Before Registering Your Company?
Before you register, you need to prepare a small number of legal documents. These documents explain who owns the company and how it will operate. For most businesses, the process is straightforward because Companies House creates some of the documents automatically when you apply online.
What Is a Memorandum of Association and When Do You Need One?
The memorandum of association is a legal statement confirming that the original shareholders or guarantors agree to form the company. If you register online, you do not need to create this document yourself. Companies House generates it automatically.
The memorandum usually includes:
- Company name
- Type of company
- Names of the first shareholders or guarantors
- Confirmation that they agree to create the company
Once the company is formed, the memorandum cannot normally be changed. One adviser described it simply: “The memorandum contains all of the names of subscribers, the founders of the business and shareholders.”
What Are Articles of Association and Should You Use Model Articles?
The articles of association are the rules that explain how the company will be managed.
They cover matters such as:
- Director powers
- Voting rights
- Shareholder decisions
- Dividends
- Company meetings
Most businesses use the standard model articles provided by Companies House because they are simple and accepted automatically.
You may want custom articles if your company has:
- More than one shareholder
- Different classes of shares
- Special voting arrangements
- A more complex ownership structure
Unlike the memorandum, the articles of association can be changed later if the shareholders agree.
What Shareholder, Share Capital or Guarantee Information Must You Provide?
If your company is limited by shares, you must complete a statement of capital.
This includes:
- Names of shareholders
- Number of shares issued
- Value of each share
- Rights attached to the shares
Most companies start with:
- One ordinary share
- £1 value
- One shareholder
You may also issue different share classes, such as ordinary and non-voting shares. If your company is limited by guarantee, you need a statement of guarantee instead.
This explains:
- Names of guarantors
- Guaranteed amount
- What each guarantor will pay if the company closes
In most cases, the guaranteed amount is only £1. Getting these details right is important because mistakes in share structure are one of the most common reasons applications are rejected.
How Do You Register a New Company With Companies House Step by Step in 2026?
Once you have chosen your company name, gathered your documents and completed any identity checks, you can register your company online through Companies House.
The process is usually straightforward and can often be completed in under an hour.
The main steps are:
- Create a new Government Gateway account for your business
- Sign in to the Companies House registration service
- Enter your company name and registered office address
- Add your company email address
- Provide details for directors, shareholders and PSCs
- Enter your SIC code to describe what the business does
- Upload or accept your articles of association
- Confirm your share structure or guarantee details
- Add any identity verification codes if required
- Pay the registration fee and submit the application
You can also register for PAYE at the same time if you plan to employ staff, including yourself as the only director. If you do not want your company name to end in “Ltd” or “Limited”, you must apply by post instead of online.
After you submit the form, Companies House reviews the application. If everything is correct, your company is usually registered within 24 hours.
How Much Does It Cost to Register a Company With Companies House in 2026?
The cost depends on how you apply. Online registration is usually the fastest and most affordable option.
| Registration Method | Cost in 2026 | Typical Processing Time |
| Online through Companies House | £100 | Within 24 hours |
| By post using Form IN01 | £124 | 8 to 10 working days |
| Through a company formation agent | Usually £100 to £300+ | Often within 24 hours |
| Through third-party software | Varies by provider | Usually 24 hours |
Using an agent or software can be useful if you want extra support, such as:
- A registered office service
- Help choosing your share structure
- Drafted company documents
- VAT or PAYE registration support
However, many people can complete the application themselves without paying extra. A higher cost does not always mean faster approval. In most cases, Companies House processes correctly completed online applications within one working day.
How Long Does Companies House Registration Take and What Happens After Approval?
Most online Companies House applications are approved within 24 hours, while postal applications usually take 8 to 10 working days.
After approval, you receive a certificate of incorporation showing your company name, company number and incorporation date. Once you have this, you can open a business bank account, start trading and register for VAT or PAYE if needed.
You will also receive a company authentication code, login details and a 10-digit UTR from HMRC within around 15 working days.
If you are not ready to trade, you can keep the company dormant, but you must still file annual confirmation statements and company accounts.
What Taxes and HMRC Registrations Do You Need After Your Company Is Registered?
After your company is registered, you may need to complete several tax registrations with HMRC. The correct tax setup depends on whether you plan to trade immediately, employ staff or reach the VAT threshold.
When Do You Need to Register for Corporation Tax?
Most companies are automatically set up for Corporation Tax when they register online with Companies House. However, if you registered by post, through an agent or through software, you may need to add Corporation Tax services manually.
You should register for Corporation Tax as soon as your company starts doing business.
This includes:
- Buying or selling goods
- Advertising
- Renting a property
- Employing someone
To add Corporation Tax services, you will need:
- Your company number
- Your UTR
- Date your business started trading
- Date your first accounts will end
Even if your company makes no profit, you still need to file a Company Tax Return.
One accountant explained, “You’ll need to file a Company Tax Return, even if you make a loss or have no Corporation Tax to pay.” Many new business owners miss this and receive penalties later.
Do You Need to Register for VAT or PAYE?
You only need to register for VAT if your taxable turnover reaches the VAT threshold. However, some businesses choose to register earlier so they can reclaim VAT on expenses.
You may wish to register voluntarily if:
- You buy expensive equipment or stock
- Most of your customers are VAT-registered businesses
- You want your business to appear larger or more established
You need to register for PAYE if your company pays employees, including yourself as a director receiving a salary.
PAYE registration is usually needed if:
- You employ staff
- You pay yourself through payroll
- You need to deduct Income Tax or National Insurance
You can often register for PAYE during the company registration process.
What Should You Do if Your Company Will Stay Dormant?
A dormant company is one that has not started trading or earning money.
You may choose to keep your company dormant if:
- You want to protect the company name
- You are planning to launch later
- You are not ready to trade yet
A dormant company does not usually need to pay Corporation Tax.
However, you still need to:
- File dormant accounts
- Submit a confirmation statement
- Keep your Companies House details up to date
You should also tell HMRC that the company is dormant. Otherwise, HMRC may expect tax returns and send reminders.
What Records Must You Keep and How Long Must You Keep Them?
Limited companies must keep both company records and financial records.
Company records include:
- Directors and shareholders
- Voting decisions
- Share transfers
- Loans and guarantees
Financial records include:
- Income and expenses
- Bank statements
- Invoices and receipts
- Stock and assets
- Tax records
Most records must be kept for at least six years. You should keep them safely in digital or paper form so they can be shown to HMRC or Companies House if required. If records are lost, stolen or destroyed, you should try to recreate them as soon as possible.
Poor record keeping can cause:
- Tax penalties
- Late filing fines
- Problems during an HMRC investigation
Many small businesses now use cloud accounting software to make this easier.
What Common Mistakes Delay or Reject a Companies House Application?
Most rejected applications happen because of simple mistakes that could have been avoided.
The most common problems include:
- Company name already taken
- Company name too similar to another business
- Wrong registered office address
- Missing identity verification code
- Incorrect share structure
- Incomplete director details
- Wrong date of birth or spelling errors
Applications are also often delayed when people forget to include:
- PSC details
- Articles of association
- SIC code
- Company email address
One business adviser said, “Often registrations can be rejected for a simple mistake like an incorrect date of birth or address, which means you will fail the anti-money laundering checks and need to go through the whole process again.”
Before submitting the application, check every section carefully. Spending five extra minutes reviewing the form can save several days of delay.
Conclusion
To register a new company with Companies House in 2026, you need to choose the correct company type, prepare your details and complete the online registration process carefully. Most people set up a private company limited by shares because it offers limited liability, flexibility and a professional business structure.
The most important steps are choosing an acceptable company name, completing any identity verification and preparing your registered office address, directors and company documents in advance.
Once your company is approved, you can begin trading, open a business bank account and manage your tax registrations with HMRC.
If you take time to prepare everything correctly before you apply, registering your company can be straightforward and stress-free.
FAQs
What is the fastest way to register a new company with Companies House?
The fastest way is to register online through the Companies House service. Most online applications are approved within 24 hours if all the information is correct.
Can you register a company without a business address?
No, you must provide a registered office address before you can complete the application. The address must be a real UK address where official post can be received.
Do you need an accountant to register a limited company?
No, you can register a company yourself without using an accountant. However, many people use an accountant or company formation agent if they want extra support.
Can one person own and run a limited company?
Yes, one person can be the only director and the only shareholder of a private limited company. This means you can own 100% of the business yourself.
What happens if your company name is rejected?
If Companies House rejects your company name, you will need to choose a different one and submit the application again. This usually happens when the name is already taken or too similar to another company.
Do you need to register for VAT immediately after setting up a company?
No, you only need to register for VAT when your taxable turnover reaches the VAT threshold. You can also register voluntarily earlier if it benefits your business.
Can you change your company details after registration?
Yes, you can update details such as your registered office address, directors or company name after registration. Most changes can be made online through Companies House.
What happens if you make a mistake on your registration form?
Small mistakes can delay or reject your application. If this happens, you usually need to correct the error and submit the form again.
Do dormant companies still need to file accounts?
Yes, a dormant company must still file dormant accounts and a confirmation statement each year. Failing to do this can lead to penalties or the company being struck off.
Can you use your home address as your registered office?
Yes, but your home address will appear on the public Companies House register. Many business owners use an accountant’s or registered office service address instead.
