Our super simple guide to setting up a new company
It’s easier than you think to create a company.
Avoid incorporation fees from accountants, lawyers or formation agents - and do it yourself using the Companies House step by step form.
Just head here to get started:
Let's explain some of the terminology you'll encounter when completing the form.
The owner of the business is a shareholder.
The shareholders appoint directors who manage the business’s day to day activities. The same individuals are usually shareholders and directors in most startups and small businesses.
It is no longer a requirement to appoint a company secretary so this can usually be ignored.
Every company must have a registered office address. Companies House and HMRC will send important post to this address. It will also be publicly available at Companies House.
Despite this, business owners often use their home address. This is fine for most new businesses.
But if this is a problem for you then you can ‘rent’ a virtual office to handle and forward mail to you.
If this interests you then check out The London Office. We can't vouch for their service as we don't subscribe to their services. But some of our clients have taken advantage of their registered office address service and note their low price and ease of use.
You will need to choose a SIC code to provide Companies House with a description of your business.
You can search SIC codes here if you need to. You can change this at a later date so don’t dwell on it. Pick the closest code and you can ask us later to review it.
A new business with one owner might start with 1 x £1.00 of ordinary shares.
If you have more than one owner, then you might opt for 100 x £0.01 ordinary shares. The 100 shares can then be apportioned however you like (for example - 50/50 for two equal shareholders).
You’ll have to pay the total value of the share capital into your company bank account when you get started. The funds will effectively be locked in the company until you sell the shares in the distant future. So don’t set up an initial share capital higher than £100 unless you really have to. Keep it low and simple.
Sole Shareholder
1
£1.00
£1.00
Two Equal Shareholders
50 each
£0.01
£1.00
Three Equal Shareholders
3 each
£1
£3.00
After you have completed the online form, you should receive an email from Companies House confirming your new company has been created within 24 hours.
It's a good idea to set up a bank account as soon as you can. Challenger banks like Starling Bank and Monzo are popular options. We use Starling Bank and it works very well for us.
And if you need an accountant - you know where to find us!
Get an instant online quote:
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