How to Form a Company in the United Kingdom

Open a Company in the UK

To open a company in the UK, you need to provide the required information to Companies House.

1. Company Name

Your company name must end with one of the following: Ltd., Limited, LLP (Limited Liability Partnership), or plc (Public Limited Company).

There are a few restrictions:

• Sensitive or restricted words
• Names that are already registered

You can use a name availability search tool to check if your desired company name is already registered.

2. Company Address

You can choose from the following options:

• Your home address
• An office address
• Place of business
• A virtual office address

Once selected, this address must be registered with Companies House.

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3. Director

Every UK-registered company must have at least one director. You can appoint multiple directors if needed.

The director is legally responsible for managing the company and ensuring that all accounts and reports are properly prepared and submitted annually.

4. Company Shares – Statement of Capital

Company shares define ownership, dividend rights, and voting power. Shareholders can vote on important company decisions.

In a company limited by shares, a director and shareholder can be the same person. If there is only one shareholder, they will own 100% of the company.

To limit liability, shares can have a nominal value as low as £1. If there are multiple shareholders, ownership percentages and share values must be clearly defined.

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5. SIC Code

The Standard Industrial Classification (SIC) code defines your company’s main business activity. Providing the correct SIC code is essential to avoid rejection by Companies House.

6. Memorandum and Articles of Association

These documents outline how your company will operate. Once registered, they cannot be easily changed, so they must be accurate and agreed upon from the start. You can use standard model articles or create your own.

Also read: 6 advantages of forming an LLP UK company formation

7. People with Significant Control (PSC)

You must provide details of individuals who have significant control over the company. This typically includes anyone who owns more than 25% of shares or voting rights.

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