Setting up a limited company in the UK is one of the fastest, lowest-cost company formations in the world. With 1Office filing directly via the Companies House API, most companies are incorporated the same working day. The state fee is £100. No notary, no minimum share capital worth mentioning, no UK residency required. This guide covers everything you need to know to set up your UK company today: what it costs, how long it takes, what services you actually need, and why thousands of founders from over 80 countries choose 1Office to handle it.

Why set up a limited company rather than operating as a sole trader?

Most people starting a business in the UK choose between operating as a sole trader or registering a limited company. For the majority of founders, the limited company is the stronger structure from the day meaningful revenue begins.

The tax difference alone is significant. At £60,000 profit, a limited company structure saves approximately £4,500 per year compared to sole trader, even after accounting for additional accounting costs. At higher profit levels, the saving compounds further.

What you need before you start your company setup

Gathering the right information before you begin makes the formation process faster and avoids delays. Here is everything 1Office needs to set up your company:

• Company name, must be unique on Companies House and end in "Limited" or "Ltd". Have a second option ready in case your first choice is taken.
• Director details: full legal name, date of birth, nationality, country of residence, and a service address. No UK residency required. Must be 16 or older.
• Shareholder details: name, address, and number of shares. Can be the same person as the director. Most single-founder companies issue 100 shares at £1 each.
• Identity document: a valid passport or UK driving licence. Required for Companies House identity verification, mandatory since November 2025.
• UK registered office address: every UK limited company must have a physical UK address. 1Office provides a London address included in all packages.
• Business activity (SIC code): a description of what the company will do. 1Office helps you select the correct Standard Industrial Classification code.

How long does it take and what does it cost to set up a limited company?

The UK has one of the fastest company formation processes in the world. With 1Office filing directly via the Companies House API:

The total cost of setting up a UK limited company with 1Office starts from £149 (£49 service fee plus the £100 Companies House state fee). Most companies in the 1Office Business and Premium packages also include VAT registration, bookkeeping setup, and ongoing accounting support.

The step-by-step company setup process with 1Office

• 1

  Check your company name

  Names must be unique on Companies House and end in "Limited" or "Ltd". Certain words require special approval. 1Office checks availability instantly when you start your application. You cannot reserve a name, so check close to your planned formation date.

• 2

  Choose your package and enter your details

  Select the 1Office package that fits your needs: Starter, Business, or Premium. Enter director details, shareholder information, and your chosen SIC code. 1Office guides you through each step. The process takes around 10 minutes.

• 3

  Complete identity verification

  Since November 2025, all directors and people with significant control (PSCs) must verify their identity with Companies House. As a registered Authorised Corporate Service Provider (ACSP), 1Office handles this digitally as part of the formation process. Passport or UK driving licence required. No separate step, no delays.

• 4

  1Office files your application with Companies House

  1Office submits your IN01 application directly via the Companies House API. Standard applications filed in business hours are processed the same working day. You receive your Certificate of Incorporation, company registration number, and Memorandum and Articles of Association by email.

• 5

  Register for Corporation Tax and open a business account

  Companies House notifies HMRC automatically. You will receive a Unique Taxpayer Reference (UTR) at your registered address within about 2 weeks. Register for Corporation Tax within 3 months of starting to trade. Open a business bank account, Wise Business, Revolut Business, or traditional UK banks are all available.

1Office UK company formation packages

1Office offers three packages depending on how much support you need, from a straightforward company registration through to a fully-managed monthly service with bookkeeping, VAT, and annual accounts included. Every package includes same-day filing via the Companies House API, a London registered address, director service address, and ACSP identity verification. No hidden fees.

• Essentials — company formation with all mandatory requirements. Registered address, identity verification, Certificate of Incorporation, and my1Office platform access. The right starting point if you want to get incorporated and manage compliance yourself.
• Business — everything in Essentials plus VAT and PAYE registrations, suitable for companies ready to begin trading and sending invoices from day one.
• Premium — a full monthly subscription that combines formation with ongoing accounting: bookkeeping, VAT returns, annual accounts, Corporation Tax return, and Confirmation Statement filing all handled by 1Office throughout the year.

Virtual business address: why every new UK company needs one

Every UK limited company must have a registered office address at a physical UK location. This address is publicly visible on the Companies House register and cannot be a PO box. For founders who work from home, live outside the UK, or simply want to keep their personal address private, a virtual business address is the standard and correct solution.

What a London virtual office provides

• A compliant registered office address: satisfies the Companies House requirement for a physical, serviceable UK address. Used for all official Companies House and HMRC correspondence.
• Director's service address: keeps your personal home address entirely off the public register. The director's service address is also publicly visible, so this matters even beyond the registered office.
• Mail scanning and forwarding: all official post received at the address is scanned and forwarded to you digitally, wherever you are in the world.
• Professional London address on invoices and your website: a central London address signals credibility to enterprise clients, banks, and investors who check your Companies House listing.
• Required from day one: you cannot incorporate without a registered office address. 1Office includes this in all formation packages. No additional setup needed.

VAT registration for new UK limited companies

VAT registration is one of the first decisions a new UK company faces. Getting it right from the start saves significant work later.

When VAT registration is mandatory

You must register for VAT when UK taxable turnover exceeds £90,000 in any rolling 12-month period. Once registered, you charge VAT on your sales and file quarterly VAT returns with HMRC. The standard UK VAT rate is 20%.

When to register for VAT voluntarily

Registering before the £90,000 threshold is the right choice if your clients are VAT-registered businesses (they reclaim the VAT you charge, so it costs them nothing), you have significant VAT-bearing costs (equipment, software, services) that you want to reclaim, or a VAT number adds credibility with enterprise procurement teams. Many B2B service companies register voluntarily from day one. 1Office UK handles VAT registration as part of the Business and Premium packages and as a standalone service. View tax registration services.

Setting up a UK limited company from outside the UK

There is no UK residency requirement for company directors or shareholders. Foreign nationals from any country can set up a UK limited company. 1Office has formed companies for founders from over 80 countries, including India, Nigeria, Ukraine, the UAE, Australia, Brazil, and across Europe.

What non-resident founders need:

• A UK registered office address: provided by 1Office as standard in every package
• Identity verification: completed digitally via passport through 1Office as your ACSP, without visiting the UK
• A business bank account: Wise Business and Revolut Business are the fastest routes for non-residents; no UK address required to open either

What to do in the first 30 days after your company is set up

• Open a business bank account immediately. Keep company and personal finances separate from day one. Wise Business or Revolut Business for fastest opening. Traditional banks take longer but are also available.
• Register for Corporation Tax within 3 months of starting to trade, not within 3 months of incorporation. HMRC sends your UTR to your registered address within 2 weeks of incorporation.
• Set up bookkeeping from the first transaction. Do not wait for year end. Monthly bookkeeping from 1Office means your accounts are always ready and VAT returns are accurate. View accounting services.
• Consider VAT registration early. Voluntary registration before the £90,000 threshold is often the right choice for B2B companies. Ask 1Office whether it makes sense for your situation.
• Note your Confirmation Statement deadline. Due annually from your incorporation anniversary. £50 filing fee. Missing it can lead to your company being struck off. 1Office files this on your behalf for accounting clients.
• Note your first accounts deadline. First accounts are due 21 months after incorporation. Thereafter, annual accounts are due 9 months after your financial year end.

Frequently asked questions about setting up a limited company in the UK