Your own Ltd in the UK: £100 and 24 hours to register, £1 shares and 19% tax — what to know before you start

You can register a company in Britain online for £100, and it is usually ready within 24 hours. But the easy entrance is deceptive: along with the certificate of incorporation come duties to Companies House and HMRC — and since 2025, directors only get into the register after verifying their identity through GOV.UK One Login.

The GOV.UK rules: how registration works, what a £1 share and persons with significant control are, what tax a company pays on profits, and when a Ltd beats working for yourself.

What is a limited company and why have one?

A company is a legal person separate from you: its own money, its own debts, its own contracts. The key word is limited: the members’ liability is capped. In the standard company limited by shares it is capped at the value of the shares — which is why shares are often issued at £1 each: if the business collapses, a shareholder risks that amount, not their house. Companies limited by guarantee (usually non-profits) have guarantors and a “guaranteed amount” instead of shareholders.

Who do you need to register?

At least one director and at least one shareholder — and they can be the same person: a one-person company is entirely legal, and you will own 100%. Shareholders control the company, vote and receive dividends. Anyone with more than 25% of shares or voting rights is a person with significant control (PSC): you must declare them at registration, and the PSC register is public.

How does identity verification work?

Before registering, directors must verify their identity through GOV.UK One Login, which issues a Companies House personal code. You verify once; with several directors, each needs their own code. Without the codes the application cannot be filed.

How much does it cost and how long does it take?

Online — £100 by card, and the company is usually ready in 24 hours. By post (form IN01) — £124 by cheque and 8–10 days; post is also the route for those who do not want “limited” in the name. You get a certificate of incorporation with the company number and formation date. Registration usually sets you up for Corporation Tax at the same time, and you can register as an employer (PAYE) too — even if the only employee is you.

What tax does the company pay?

Corporation Tax on profits: 19% up to £50,000 of profit (the small profits rate), 25% above £250,000, and in between the main rate with Marginal Relief, so the transition is gradual. The thresholds shrink proportionally if you have associated companies. When the company’s 10-digit UTR arrives, add Corporation Tax to the business tax account — no return can be filed without it.

Ltd or sole trader — which to choose?

A sole trader is simpler: registration is free and the reporting is one tax return, but you answer for business debts with everything you own. A Ltd costs more to run (annual filings at Companies House, public data) but caps the risk and often looks more solid to clients. Many take the practical route: start as a sole trader — we covered how to register and what to pay — and incorporate when turnover and risk grow. If turnover approaches £90,000, read the VAT rules separately — they catch Ltds and sole traders alike.

What do people forget after registering?

A company means recurring duties: annual accounts and a confirmation statement at Companies House, a Corporation Tax return, PAYE once there are salaries, VAT once there is the threshold. The company’s name and address are public — as are the directors’ and PSCs’ names. And remember: the company’s money is not your personal money; it comes out as salary or dividends, each with its own tax price.

Where do you start, in short?

Check the name is free and breaks no rules. Verify your identity in One Login and get the personal code. Prepare the shareholder and PSC details. Register online for £100 — and open the company’s own bank account the same day: mixing Ltd money with personal money is off-limits from day one.