Register A Company UK – 2025 Guide, Costs & Official Steps

Registering a company in the UK is a straightforward process for limited companies, but the terminology can be confusing. Many people search for “register a company UK” when they actually intend to form a limited liability company with Companies House. Others mistakenly think sole traders also need to register a company. This guide walks you through the official steps, costs, and key differences between business structures.

The UK government provides a clear online service for incorporating a private limited company. The process takes about 24 hours online and costs £12. For those who prefer paperwork, a postal application using form IN01 costs £124 and takes 8 to 10 days. Both routes lead to the same outcome: a certificate of incorporation that gives your business a separate legal identity.

Understanding whether you need a limited company or can operate as a sole trader is the first and most important decision. This article covers both options, the real costs involved, and how to register a business name.

How to Register a Limited Company in the UK

Key Insights

• The most popular route is online registration via gov.uk due to low cost (£12) and speed (24 hours).
• Many entrepreneurs use third-party formation agents for convenience, especially to get a registered address service.
• You cannot register a company for free via the official government channel; ‘free’ offers from agents often include hidden charges for ongoing services.
• Sole traders do not register a company; they register for Self Assessment with HMRC.
• Business name registration is different: for limited companies it’s done at incorporation; for sole traders there is no central register – you can trade under your own name or a business name, but must check trade mark conflicts.
• Ongoing compliance for limited companies includes annual accounts, confirmation statements, and Corporation Tax returns.

For a complete step-by-step guide, see the official Register a limited company with Companies House service.

Sole Trader vs Limited Company: Which Should You Choose?

The single most common point of confusion around the phrase “register a company UK” is the difference between a limited company and a sole trader. A limited company is a legal entity registered with Companies House. A sole trader is an individual who works for themselves and registers only with HMRC for Self Assessment.

Key Differences Between Sole Trader and Limited Company

The table below summarises the most important distinctions:

For a deeper comparison, read the Sole trader vs limited company comparison guide from 1st Formations.

How Much Does It Cost to Register a Company in the UK?

Can I Register a Company for Free in the UK?

No. The official government online service charges exactly £12. There is no free option from Companies House. Some third-party formation agents advertise free company registration, but these offers usually come with conditions. You may be required to purchase ongoing services such as a registered address, annual filing support, or accounting software. Always read the terms carefully.

Official Government Fees vs Third-Party Costs

The official fees are clearly set by the government. Online incorporation costs £12 paid by debit or credit card. Postal applications using form IN01 cost £124 and take longer to process. Beyond these fees, extra costs can arise if you use a formation agent. Agent packages range from about £15 to over £100, depending on whether they include a registered office address, director service address, or other extras. One source puts typical agent costs starting around £59, often inclusive of the Companies House fee.

Once your company is formed, ongoing costs include Corporation Tax registration (required within three months of starting to trade), annual filing of accounts, confirmation statements, and potentially PAYE if you employ staff. Many new company directors budget for accountant fees as well.

For a complete breakdown of set-up costs, see the limited company set-up costs guide from Zempler Bank and the guide from Company Formations Direct.

How to Register a Business Name in the UK

Registering a business name works differently depending on your structure. For a limited company, the company name is registered at incorporation. The name must be unique and not too similar to an existing registered name. You can check availability using the Companies House name availability checker.

For sole traders, there is no official central register of business names. You can trade under your own name or a chosen business name without registering it with any authority. However, you must ensure the name does not infringe on existing trade marks. The Intellectual Property Office provides a trade mark search tool. Local councils may also have rules about business names for certain activities.

If you change your trading name after starting as a sole trader, you should notify HMRC. No separate Companies House filing is required.

How Long Does It Take to Register a Company UK?

When using the official online service, the typical timeline is short. Here is the expected sequence from preparation to certificate.

1. Preparation – 1–2 days. Choose company name, gather director and shareholder information, obtain a registered address, decide on share structure.
2. Submit online application – about 30 minutes. Fill in the Companies House Web Incorporation Service. Pay £12 by debit or credit card.
3. Application processed – typically 24 hours, often within 3–6 hours. Companies House checks name availability and valid data. Most applications are approved automatically.
4. Receive incorporation certificate – by email within 24 hours. You can start trading immediately after receiving it.

Postal applications via form IN01 take 8–10 days and cost £124. Processing can be longer during peak periods or if the application needs manual review.

What Is Certain and What Varies When Registering a Company?

Below we separate established facts from factors that depend on the specific circumstances.

Understanding the UK Company Registration Landscape

The UK system is straightforward for limited companies but can confuse newcomers because of overlapping terminology. Most people who search “register a company UK” intend to form a limited company. The official government route is the cheapest and safest, but third-party agents offer convenience, often providing a registered office address and faster processing. Some agents, however, charge ongoing fees that users may not anticipate.

The search results landscape shows a clear split. Government sites (gov.uk) are authoritative for costs and process but do not compare limited companies with sole traders or explain business name registration for the self-employed. Commercial formation sites fill that convenience gap but can create confusion between free and paid services.

No single official page currently explains “register a company” for all entity types in one place. This guide aims to fill that gap by presenting the facts clearly, based on government sources and industry data.

Official Sources and Quotes on UK Company Registration

The following quotes come directly from government guidance and official blogs. They confirm the key facts about the process.

“You can register online for £12. You’ll need a company name, registered office address, director details, and a SIC code.”

GOV.UK – Set up a private limited company

“Use this checklist to ensure your application is successfully processed. Check your company name, director details, and registered address before submitting.”

Companies House Blog – Successfully register a company

“You can choose to register earlier. Company owners need to register the company before they start trading.”

GOV.UK – Set up a business

For the latest official instructions, visit the Companies House official site. For Corporation Tax registration, see GOV.UK – Corporation Tax registration. Sole traders should refer to HMRC – Register as a sole trader.

Summary and Next Steps After Registration

Registering a company in the UK is most commonly done online for £12 through Companies House, and you receive your certificate within 24 hours. If you are a sole trader, you do not need a company registration; you register with HMRC for Self Assessment. After your limited company is formed, you must register for Corporation Tax within three months of starting to trade, set up a business bank account, and understand your filing obligations. Many new directors choose to work with an accountant to stay compliant. For the official process, use the Register a limited company with Companies House service.

Frequently Asked Questions