Registering a business in the UK runs through two government bodies: Companies House and His Majesty’s Revenue and Customs (HMRC). The order in which you deal with them depends on the structure you choose: sole trader, limited company, limited liability partnership (LLP), or public limited company (PLC).

From April 2025 to March 2026, more than 815,000 companies were incorporated in the UK. Below, we’ll discuss how to register a business in the UK, how to choose the right structure, and costs.

Key takeaways

• Sole traders register only with HMRC, while limited companies, LLPs, and PLCs incorporate with Companies House first and then register with HMRC.

• Corporation Tax registration must happen within three months of starting to trade, with a deadline that runs from your first business activity rather than your incorporation date.

• Online incorporation through Companies House is usually processed within 24 hours, which makes it faster and cheaper than filing on paper.

How do I register a business in the UK?

Registering a business in the UK can involve Companies House, HMRC, or both, depending on the legal structure you choose. If you’re a sole trader, you’ll skip Companies House. You can start trading without registering, but you typically must register with HMRC for Self Assessment if your gross trading income exceeds £1,000 in a tax year. Legally, there’s no separation between you and the business; you are personally responsible for its debts and tax obligations.

When you form a limited company or PLC, you must incorporate through Companies House before trading. This creates a legal entity distinct from you as an individual and gives the company a registration number, certificate of incorporation, and entry on the public companies register. When registering online, the company will usually be set up for Corporation Tax at the same time. Once the business begins trading, it must notify HMRC that it is active and might need to register for Pay As You Earn (PAYE) or value-added tax (VAT), depending on how the business operates.

An LLP also incorporates through Companies House, but its tax treatment is different. The LLP typically registers with HMRC as a partnership for Self Assessment, and its members register separately to report and pay tax on their shares of the profits.

What is the process for forming a limited company, LLP, or PLC in the UK?

Forming a limited company means working through a specific sequence with Companies House. An LLP and a PLC follow a nearly identical path, with a few differences noted below. The process can move from application to certificate of incorporation in about 24 hours.

1. Choose and check your company name

The name has to be unique against the existing register, can’t be offensive or suggest a government connection, and needs to end in “Limited” or “Ltd” (or the Welsh equivalents). Make sure you check name availability through the Companies House register before filing anything.

2. Set a registered office address

This has to be a physical UK address in the same jurisdiction where you’re incorporating, such as England and Wales, Scotland, or Northern Ireland. The address is where official correspondence and legal notices get sent.

3. Appoint at least one director

Directors must be at least 16 years old. Under the identity verification rules introduced by the Economic Crime and Corporate Transparency Act, they must confirm their identity with Companies House directly or through an authorized agent.

4. Assign shareholders and share structure

Even a single-founder company needs at least one shareholder. You’ll also need to decide how many shares exist and what they’re worth. Anyone holding more than 25% of shares or voting rights also needs to be recorded in the People with Significant Control register.

5. Prepare your memorandum and articles of association

The memorandum is a short statement that essentially says the founding shareholders agree to form the company; the articles set out the internal rules for how it’s run. Companies House provides standard templates that cover straightforward setups. Alongside these, you’ll need a Standard Industrial Classification code that describes the nature of the business.

6. File Form IN01, and pay the fee

You can submit this form online through Companies House WebFiling, third-party software, or an incorporation service.

7. Receive your certificate of incorporation

This document confirms your company number and incorporation date. You’ll need it to open a business bank account and register with HMRC.

LLP formation follows this sequence but uses Form LL IN01 instead of IN01. An LLP also needs at least two designated members who take on the compliance responsibilities a company director would normally handle. A PLC follows the same requirements but with an added share capital requirement and stricter ongoing reporting once it’s trading.

How do you choose the right structure for your UK business?

The structure you choose determines your personal liability, how you’re taxed, and your paperwork every year.

Here’s what to know about each type:

• Sole trader: You run the business as an individual, keep all the profit after tax, and file a Self Assessment return each year. There’s no legal separation between you and the business, so your personal assets are exposed if something goes wrong.

• Partnership: Two or more people share profits and liability in an arrangement similar to a sole trader but split between partners. Each partner registers individually with HMRC and pays tax on their share of the profit.

• LLP: Partners get the liability protection of a company structure with the tax treatment of a partnership. An LLP needs at least two designated members and must file annual accounts with Companies House, but partners still pay Income Tax on their share rather than Corporation Tax.

• Private limited company (Ltd): The business is a distinct legal entity, shareholders’ liability is limited to what they’ve invested, and the company pays Corporation Tax on its profits. This is the common structure for businesses that plan to hire, raise capital, or want personal liability protection.

• PLC: Shares can be offered to the public, and the company needs a minimum of £50,000 in share capital with at least 25% paid up before it can start trading. A PLC also faces heavier reporting obligations, including more detailed audited accounts.

What are the HMRC registration and tax obligations when you register a business in the UK?

Incorporating with Companies House doesn’t register you with HMRC. Within three months of starting to trade, you must register for Corporation Tax. HMRC defines this specifically as the moment you start to buy, sell, or advertise anything or employ someone. Don’t calculate it from the incorporation date or you’ll risk a penalty. Once you’re registered, HMRC issues a Unique Taxpayer Reference (UTR), which you’ll use on every Corporation Tax filing.

Corporation Tax runs on a tiered system. The small profits rate of 19% applies to companies with profits up to £50,000, but once they cross £250,000, the main rate of 25% applies. Profits that fall between those figures receive marginal relief, which tapers the rate up gradually instead of jumping straight to 25%.

A few other registrations depend on how the business operates:

• PAYE: Required when you take on your first employee and before the first payday, including if you are the employee drawing your salary through the company.

• VAT: Mandatory once taxable turnover crosses £90,000 in any rolling 12-month period, though you can register voluntarily below that threshold if it suits your business.

• Self Assessment: Directors still need to file a personal Self Assessment return each year covering salary, dividends, and any other personal income, separate from the company’s Corporation Tax return.

In addition to the tax registrations, Companies House requires an annual confirmation statement to confirm the company’s details are current, plus annual accounts filed within nine months of the company’s financial year end.

How much does it cost to register a business in the UK?

Companies House charges £100 to incorporate online and processes in a day. Filing on paper through Form IN01 costs £124 and takes longer, typically eight to 10 working days.

A same-day service is available for £156. This is useful if you need the company number quickly to open a bank account or sign a contract. LLPs follow the same fee structure because they file through the equivalent LL IN01 form. Beyond incorporation, there’s an annual confirmation statement fee of £50 online or £110 on paper.

HMRC does not charge a separate fee to register for Corporation Tax, PAYE, or VAT. However, costs can surface elsewhere in the setup, including the Companies House incorporation fee, a registered office address service if you’re not using your own premises, professional accounting support, and any formation service you use to manage the paperwork.

How Stripe Atlas can help

Stripe Atlas handles everything you need to legally launch your company—incorporation, Employer Identification Number (EIN), equity setup, and tax filings—so you can fundraise, open a bank account, and start accepting payments in as little as two business days, from anywhere in the world.

Join 100,000+ startups incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Get started in minutes with Atlas

The application takes under 10 minutes. You’ll choose your company structure, confirm your name is available, add up to four cofounders, set your equity split and e-sign. Then Atlas takes it from there, including notifying cofounders to sign their documents electronically.

Banking and payments before your EIN arrives

Atlas files your EIN application automatically after incorporation. You don’t have to wait—Atlas enables pre-EIN payments and banking so you can start accepting payments and making transactions right away. US founders with a Social Security number are typically eligible for expedited IRS processing.

Automatic 83(b) tax election filing

Atlas files your 83(b) election for you—US and non-US founders alike—with U.S. Postal Service certified mail and tracking to reduce personal income taxes. You’ll get a signed 83(b) election and proof of filing directly in your Stripe Dashboard, with certified mail confirmation.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company, drafted by Cooley, one of the world’s leading venture capital law firms, and stores them directly in your Stripe Dashboard. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

$2,500 in Stripe credits, plus $50K+ in partner discounts

Atlas startups get $2,500 in Stripe product credits for their first year, plus $50,000+ in discounts on essential tools—Mercury, AWS, Carta, Xero, Perplexity, and more. Delaware registered agent service is also included free for your first year.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.