Incorporating a limited company is often the first thing entrepreneurs do to protect their unique name and launch their business on the public online register. However, the rules and fees related to company formation have changed; Companies House fees have risen considerably over the last 2 years, and identity verification is now mandatory under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).
Rather than a barrier to entry, the new rules help to prevent unauthorised businesses, which bolsters the reputation of legitimate companies, and the UK remains a popular place to start a business due to the established legal system and available investment opportunities.
This guide walks through each step of starting a business and managing your legal and compliance responsibilities.
1. Choose your company name
Your company name is a legal identity, and it may differ from the name you trade under. If the name will feature in your marketing, consider what works for your sector. Either way, it must be unique and not already in use. You can check availability on the Companies House register, or by using our company name availability check
2. Decide on the company structure
The most common structure for small businesses is the private limited company (Ltd). It gives shareholders limited liability, so their personal assets are generally protected if the company runs into financial difficulty. Sole traders and partnerships are alternatives, but they don’t offer this protection.
3. Appoint your director(s) and decide on shareholdings
You need at least one director who is responsible for running day to day operations and ensuring the company meets its legal compliance obligations.
You’ll also decide how shares are allotted. A company with one director will typically issue 100 shares at £1 each, (all held by the director). Where there are multiple directors/owners, consider drafting a shareholders’ agreement covering how shareholdings are divided and what happens if new members join or existing holdings are dissolved.
4. Verify your identity (required under ECCTA)
Since November 2025, identity verification under the Economic Crime and Corporate Transparency Act has been a compulsory part of incorporation. A company can’t be incorporated until directors and people with significant control have been verified. Once members are verified, each individual receives a Companies House personal code, which is valid for each role they hold within the company.
We routinely carry out identity verification and anti-money laundering (AML) checks on behalf of company directors as part of the incorporations process, included in our registration packages.
5. Register your company with Companies House
Incorporation is the process of registering your company with Companies House. The fee to incorporate online is £100, which doubled from £50 on 1 February 2026. Paper applications cost £124, and same-day incorporation costs £156. Most online applications are processed within 24 hours.
You’ll need a registered office address in the UK. It’s strongly advisable to use a business service address for your company and its officers, so your home address doesn’t appear on the public record. When your company is registered, you’ll receive your certificate of incorporation.
If you’d rather have it handled for you, Easy Digital Company can incorporate your company, complete the identity checks, and give you access to a secure company portal from day one, with Companies House fees included in the price.
6. Register for Corporation Tax with HMRC
Once your company is registered, you need to register for Corporation Tax with HM Revenue & Customs, plus VAT (if applicable) and PAYE if you’ll employ staff. HMRC will issue a Unique Taxpayer Reference (UTR), so keep it somewhere safe. Set up your HMRC Gateway account and register well before your accounting period ends, as this can take two to six weeks.
7. Stay on top of your filing obligations
Companies House and HMRC have separate obligations and deadlines. Companies House cares about your duties under the Companies Act. HMRC cares about your tax affairs. As a registered company, you’ll need to:
- file annual accounts and a Corporation Tax return (CT600)
- file an annual confirmation statement, which now costs £50 online
- keep accurate financial records
- keep Companies House up to date when details change
Missing a deadline can lead to penalties, so reminders matter.
Your company portal: reminders and free filing drafts
When you incorporate with Easy Digital Company, you get access to the secure company portal, where you’ll receive filing reminders so important deadlines don’t slip past you.
Your EDC login also works on Easy Digital Filing at any time, so you can access the platform and draft your filings for free when you’re ready to prepare your accounts and tax return.
Already have a company? You can import it into the portal to get filing reminders too.
Summary:
Incorporating a company is still straightforward and fully online, but costs are higher and identity verification is now compulsory. Choose your structure, get your directors and PSCs verified, register with Companies House and HMRC, and keep on top of your deadlines.
