1. Choose a company name
This first step allows you to get a little creative. You want your name to be representative of who you are and the products and/or services you provide. However, there are a few things to consider. For example, you should:
- avoid offensive words
- make sure it’s unique and not previously copyrighted or trademarked
- make sure that it’s not too similar to other existing names.
For more information on choosing a company name, visit the government website.
2. Register your business address
A registered business address must:
- Be a physical address – e.g. your home or office
- Be in the same country where your business is/will be registered
- Be ‘appropriate’ – e.g. whoever resides there must be made aware it is a registered business address, and be prepared to receive post
- Not be a PO Box
Get support on finding the right business premises
3. Prepare the necessary documents
When you start a limited company, there are a number of documents you need to prepare beforehand. These need to be sent to Companies House when registering your business.
- Memorandum of association. A legal document that needs to be signed by all owners, shareholders and guarantors. It confirms their agreement to create the business.
- Articles of association. Contains all the agreed-upon ‘rules’ of the business, again signed by all owners, shareholders and guarantors.
Visit the government website for more information on how to write these, and for the templates you’ll need.
4. Register with Companies House
You’ll then need to register your business with Companies House. This is quite straightforward, and you can do it online. All you need to do is:
- Visit the government registration page. Make sure you read all the information on there so you know what to expect.
- Select ‘Register now’ and answer the provided questions. You’ll also be asked to create a Government Gateway User ID so you can track your application.
- Provide the required personal information. You’ll need three pieces of personal documentation for each owner, shareholder or guarantor. For example, their town of birth, National Insurance number and passport number.
- Provide your business address and Standard industrial classification of economic activities (SIC) code.
- Submit all the required documentation. This may differ depending on the type of company you’re setting up. You’ll be told what you need as you progress through the application.
- Submit your application and wait for Companies House to respond. This can take as little as a few hours or a few days, depending on if they need more information from you. Postal applications take around 8-10 days.
- Receive your certificate. If your application is approved, you’ll receive your ‘certificate of incorporation’, which confirms that your company legally exists.
5. Set up a business bank account
In order to start trading as a business, you’ll need to open a bank account for your limited company. This is especially important when setting up a limited company, as your personal and business finances should remain separate.
At NatWest, we have a number of different options for you to explore. Bank accounts are not a one-size-fits-all solution, which is why it’s a good idea to do your research to find the perfect one for you.
Take a look at our selection of business bank accounts to find the right one for your limited company. Eligibility criteria apply.
Register for taxes
The final step to setting up a limited company is ensuring you’re registered for the correct taxes with HMRC. You’ll need to add Corporation Tax services to your business account. Like registering your company, this can all be done online and doesn’t take too long.
This is an important legal step and must be completed before you start trading, advertising, renting property or employing staff.
