🇬🇧 MEMBER DEAL: 1st Formations — UK limited company from £12.99. Same-day formation, London registered office, Companies House fee included. ThriveOnz360 Growth members access exclusive pricing. Takes 3–6 hours.
Setting up a UK limited company in 2026 involves 10 essential steps: choosing your company name and structure, registering at Companies House (via a service like 1st Formations from £12.99 — same day), getting a business bank account, registering for Corporation Tax within 3 months, setting up PAYE if you’ll pay salaries, registering for VAT if turnover exceeds £90,000, appointing an accountant, setting up your accounting software, getting your legal documents in order, and building your compliance calendar. Miss any one of these and you face fines, delays, or trading restrictions. This checklist covers every step, every deadline, and every tool — in the order you need to do them.
🇬🇧 UK COMPANY FORMATION 2026 · Companies House · HMRC · PAYE · VAT · Banking · Legal
UK Company Formation Checklist: 10 Steps Before You Launch (2026)
Most founders focus on the Companies House registration and forget the nine other things that need to happen before you can legally and professionally trade. This checklist closes that gap — covering everything from name reservation to your first board minute, in the exact order you should do them. Estimated total time: 2–5 days if done efficiently.
✅ Steps 1–10: in the right order
✅ Every HMRC deadline included
✅ Required documents per step
✅ Recommended tools (free + paid)
✅ Common mistakes at each stage
✅ Cost breakdown per step
✅ Printable checklist in FAQ section
⏱ Time Estimates
Steps 1–2: 30 mins (same day)
Steps 3–4: 1–2 business days
Steps 5–7: 1–3 days
Steps 8–10: 1–2 days
Total: 2–5 business days end-to-end
📋 Jump to Step
Step 1 — Choose Your Company Name
Step 2 — Register at Companies House
Step 3 — Open a Business Bank Account
Step 4 — Register for Corporation Tax
Step 5 — Register for VAT (if applicable)
Step 6 — Set Up PAYE (if paying salaries)
Step 7 — Appoint an Accountant
Step 8 — Set Up Accounting Software
Step 9 — Get Your Legal Documents Right
£12.99
1st Formations starting price — UK limited company same-day at Companies House.
3 months
HMRC deadline to register for Corporation Tax after incorporating. Miss it = £100 fine.
£90,000
UK VAT registration threshold (rolling 12 months). You have 30 days to register once exceeded.
3–6 hrs
Average 1st Formations Companies House registration time. Apply in the morning, incorporated by afternoon.
10
Steps most founders should complete before trading. Most skip 4–6 of them and pay for it later.
⚡ Quick Actions
- 1st Formations — Register Your UK Company Today (From £12.99, Same-Day) →
- ThriveOnz360 1st Formations Member Deal — Exclusive Pricing →
- How to Register a Company in the UK 2026 — Full Step-by-Step Guide →
- 1st Formations Review UK 2026 — Independent Assessment →
- LTD vs Sole Trader UK 2026 — Which Structure Is Right for You? →
- Join Growth Plan Free — Unlock 1st Formations Exclusive Pricing + Formation Toolkit →
Step 1: Choose Your Company Name and Structure
Before you can register, you need a company name that passes Companies House rules, and a decision on your legal structure. Both take longer than founders expect.
Company Name Rules (Companies House)
Your company name must: be unique on the Companies House register (check via Companies House name search), not be offensive or contain sensitive words without approval (“Bank”, “Royal”, “NHS”, etc.), end in “Limited” or “Ltd” (for a private limited company), and not be identical or too similar to a registered trademark (check via IPO trademark register).
Which Structure? Ltd vs Sole Trader vs LLP
For most founders, a private limited company (Ltd) is the right structure: limited liability, tax flexibility (salary + dividends), professional credibility, and access to investment. Sole trader is simpler but provides no liability protection — your personal assets are at risk. LLP is typically for professional partnerships (solicitors, accountants). See: LTD vs Sole Trader UK 2026 →
✅ Step 1 Checklist
☐ Search Companies House for your chosen name
☐ Check IPO trademark register for conflicts
☐ Search Companies House for similar names
☐ Confirm name ends in “Ltd” or “Limited”
☐ Decide: Ltd / Sole Trader / LLP
☐ Reserve name (optional, via 1st Formations)
⏱ Time: 30–60 mins · Cost: Free
⚠️ Common Mistake
Founders pick a trading name and a different company name — then discover their trading name is an existing trademark 6 months in. Check both registers before committing to anything.
Step 2: Register at Companies House via 1st Formations
Companies House registration is the legal act of creating your company. You can register directly via Companies House (£50, 24–48hrs) or use a formation agent like 1st Formations (from £12.99, same-day). For most founders, 1st Formations is the better option: cheaper, faster, and includes documents, registered office, and guidance that Companies House does not provide directly.
What You’ll Need to Register
Company name · Registered office address (must be in England, Wales, Scotland, or Northern Ireland) · At least one director (must be a person, 16+, not disqualified) · Shareholder details and share structure · SIC code (your business activity code — choose from the HMRC list) · Memorandum and Articles of Association (1st Formations provides standard versions automatically)
What 1st Formations Gives You That Direct Filing Doesn’t
A registered office address (required — your home address becomes public record if you use it) · Share certificates and stock transfer forms · Minutes of first board meeting · Memorandum and Articles of Association · Digital filing at Companies House · Year 1 registered office service included on most packages. See the full breakdown: 1st Formations Review UK 2026 →
✅ Step 2 Checklist
☐ Choose: direct Companies House or 1st Formations
☐ Confirm registered office address
☐ Gather director details (full name, DOB, address)
☐ Decide share structure (most: 100 ordinary shares)
☐ Select SIC code
☐ Submit application
☐ Receive Certificate of Incorporation
⏱ Time: 30 mins to apply · 3–6hrs to incorporate · Cost: £12.99+ (1st Formations)
ThriveOnz360 Recommended: 1st Formations
From £12.99 · Same-day · London registered office · All documents included
⚠️ Common Mistake
Using your home address as the registered office. It becomes publicly visible on Companies House — use 1st Formations’ London registered office service (included in most packages) to keep your home address private.
1st Formations UK: Which Plan to Choose
| Plan | Price | Includes | Best For |
|---|---|---|---|
| e-Formation | £12.99 | Digital documents only. Companies House fee included. | Founders with own registered office address |
| Privacy Package | £52.99 | Digital docs + 1 year registered office (London). Director service address. Privacy protected. | Most first-time founders |
| Standard Plus | £84.99 | All above + printed certificate + company seal + priority filing. | Founders who need physical documents for banking |
| Complete Formations ⭐ | £149.99 | All above + VAT registration + PAYE setup + Corporation Tax registration. Full HMRC setup done for you. | Founders who want the full Steps 1–4 handled in one go |
Step 3: Open a UK Business Bank Account
A business bank account is legally required before you can trade — you must not use a personal account for company income or expenses. You’ll need your Certificate of Incorporation and Companies House registration number to open one. Most digital accounts open in 1–2 business days.
Recommended Setup: Two Accounts
For most UK SMEs the optimal setup is Starling Bank (free, FSCS-protected, great Xero integration) for UK GBP banking and Airwallex (free, 0.5% FX, 200+ countries) for international payments. Together: £0/month combined. Compared to a traditional bank: £4,000–8,000/year saved on FX and fees for any business with international activity. See: Best Business Bank Account UK 2026 →
What You Need to Open a Business Account
Certificate of Incorporation · Companies House registration number · Director identity documents (passport or driving licence) · Proof of business address · Business description and projected turnover · Director date of birth and home address
✅ Step 3 Checklist
☐ Have Certificate of Incorporation ready
☐ Open Starling Bank (free UK domestic account)
☐ Open Airwallex (free international + multi-currency)
☐ Connect both accounts to Xero
☐ Set up internet banking access for directors
☐ Record account details in company records
⏱ Time: 1–2 business days · Cost: £0
⚠️ Common Mistake
Using a personal bank account for early company transactions “just temporarily.” HMRC can disallow expenses paid from personal accounts, and it creates bookkeeping chaos that costs hours to unwind.
Open Airwallex free — the best international business account for UK companies
£0/month · 0.5% FX markup · 200+ countries · free local transfers · Xero native integration · corporate cards with 0% FX. Open in 48 hours. Full Airwallex review →
Step 4: Register for Corporation Tax with HMRC
This is the most missed step — and the one with the clearest fine. Every UK limited company must register for Corporation Tax with HMRC within 3 months of starting to trade (not 3 months from incorporating — from the date you first do any business activity). The fine for missing this is £100. The registration is free and takes 10–15 minutes via HMRC’s business tax account.
How to Register
Go to HMRC’s online services. You’ll need: your company’s Unique Taxpayer Reference (UTR) — posted to your registered office within 2 weeks of incorporation · the date you started trading · your accounting reference date (your year-end — Companies House sets this automatically as the last day of the month of incorporation, one year ahead, but you can change it) · the address of your principal place of business.
Corporation Tax Rate 2026
The UK Corporation Tax rate is 25% on profits over £250,000 and 19% on profits under £50,000, with marginal relief between £50,000 and £250,000. Your first CT return is due 12 months after your accounting period end; the tax payment itself is due 9 months and 1 day after year-end.
⏰ Critical Deadlines — Corporation Tax
Registration deadline:
3 months from first trading activity
CT600 return filing deadline:
12 months after accounting period end
CT payment deadline:
9 months + 1 day after accounting period end
✅ Step 4 Checklist
☐ Wait for UTR letter (arrives ~2 weeks post-incorporation)
☐ Set up HMRC business tax account online
☐ Register for Corporation Tax
☐ Note your accounting reference date
☐ Diarise CT return and payment deadlines
☐ Alternatively: use Complete Formations package from 1st Formations (included)
⏱ Time: 15 mins · Cost: Free · Fine if missed: £100
Step 5: Register for VAT (If Applicable)
VAT registration is mandatory once your taxable turnover exceeds £90,000 on a rolling 12-month basis. You have 30 days from the date you exceed the threshold to register — and HMRC back-dates your obligation from the date you first exceeded it, meaning you may owe VAT on sales made before you registered.
Voluntary VAT Registration
Many founders register voluntarily below the threshold because: (1) it allows them to reclaim VAT on business purchases (saving 20% on everything from laptops to software subscriptions), (2) it signals credibility to larger clients, and (3) it’s required if your clients are VAT-registered businesses who want to reclaim input tax. The downside: you must charge and remit VAT on sales, which is admin overhead if selling to consumers.
Making Tax Digital (MTD) for VAT
All VAT-registered businesses must use Making Tax Digital — compatible software to keep digital VAT records and submit returns to HMRC. Xero is MTD-compatible and handles VAT returns automatically. See: Making Tax Digital Guide UK 2026 →
📊 VAT Registration Decision Tree
Turnover > £90,000 in 12 months?
→ Register immediately (mandatory)
Sell primarily to VAT-registered businesses?
→ Consider voluntary registration
Sell primarily to consumers (B2C)?
→ Delay until mandatory threshold
Significant start-up VATable purchases?
→ Register to reclaim input VAT
✅ Step 5 Checklist
☐ Monitor rolling 12-month taxable turnover
☐ Decide: mandatory or voluntary registration
☐ Register via HMRC VAT online account
☐ Set up MTD-compatible software (Xero)
☐ Issue VAT invoices from registration date
☐ Diarise quarterly VAT return deadlines
⏱ Time: 20 mins · Cost: Free · Processing: 30–40 days for VAT number
Step 6: Set Up PAYE (If You’ll Pay Yourself or Any Employee a Salary)
If your company will pay any director or employee a salary — including yourself as a director-shareholder — you must register as an employer with HMRC before the first payday. PAYE (Pay As You Earn) is HMRC’s system for collecting Income Tax and National Insurance contributions from employment income in real time.
Director Salary Strategy 2026
Most director-shareholders pay themselves an optimal salary of £12,570/year (the Personal Allowance) — enough to qualify for National Insurance contribution credits but below the NIC Primary Threshold (avoiding employee NIC). Then take the remainder as dividends. This is legal, standard, and HMRC-accepted. Your accountant will confirm the right number for your situation. See: UK PAYE Guide 2026 →
Auto-Enrolment: Pension Obligations
If you employ anyone (including yourself on PAYE), you must comply with auto-enrolment pension rules. For sole directors without employees, you may be exempt. For any employee aged 22–67 earning over £10,000/year, you must enrol them in a workplace pension and contribute at least 3% employer contributions. See: UK PAYE RTI Submissions Guide 2026 →
✅ Step 6 Checklist
☐ Register as employer with HMRC (before first payday)
☐ Set up payroll software (Xero Payroll recommended)
☐ Agree director salary strategy with accountant
☐ Set up RTI (Real Time Information) FPS submissions
☐ Assess auto-enrolment obligations
☐ Register with a pension provider if required
☐ Diarise monthly payroll run dates
⏱ Time: 1–2 hours · Cost: Free to register
⚠️ Common Mistake
Paying yourself informally from the company account without running payroll. HMRC treats any money taken from the company (other than return of capital or dividends) as salary — with PAYE and NIC owed. Keep loans, dividends, and salary entirely separate and documented.
ThriveOnz360 — Growth Plan
Register Your UK Company Today — 1st Formations From £12.99
Same-day Companies House registration · London registered office included · All documents · Companies House fee included · Used by 500,000+ UK companies. Growth members access exclusive ThriveOnz360 pricing — plus UK Company Formation Toolkit: registration checklist, HMRC deadline calendar, director salary optimiser, and VAT decision guide.
Step 7: Appoint a UK Accountant
A company accountant is not legally required, but it is practically essential for any trading company. An accountant prepares your statutory accounts, files your CT600 Corporation Tax return, advises on your director salary and dividend strategy, handles VAT returns, and acts as your point of contact with HMRC. The cost of not having one — in missed reliefs, late filing penalties, and poor tax planning — almost always exceeds the accountancy fee.
What to Look for in a UK Accountant for a New Company
Qualified (ACCA, ACA, or CIMA) · Familiar with your industry · Xero-certified (if you’re using Xero) · Fixed-fee pricing (not hourly) · Responsive — not just year-end availability · Experience with director salary / dividend optimisation for small companies. Typical cost for a simple Ltd with 1–2 directors: £80–200/month or £1,000–2,400/year all-in.
Xero Advisor Directory
If you’re using Xero (Step 8 below), the Xero Advisor Directory lists certified Xero accountants by location and industry. A Xero-certified accountant can access your books directly — no spreadsheet exports, no PDF statements, no time wasted on data transfer.
✅ Step 7 Checklist
☐ Get 2–3 accountant quotes (fixed-fee preferred)
☐ Verify qualifications (ACCA/ACA/CIMA)
☐ Confirm Xero certification
☐ Agree on scope: payroll, VAT, CT, year-end accounts
☐ Engage accountant before your first accounting period end
☐ Share Companies House login and HMRC gateway details
⏱ Time: 2–5 days to source · Cost: £80–200/mo
💡 Timing Tip
Appoint your accountant before you file your first VAT return or set up PAYE — not at year-end when the pressure is on. Getting them involved early means they can advise on your accounting reference date, salary strategy, and bookkeeping setup before you’ve made irreversible decisions.
Step 8: Set Up Accounting Software
Accounting software is mandatory for VAT-registered businesses under Making Tax Digital, and strongly recommended for all UK limited companies. It connects your bank accounts, categorises transactions, generates VAT returns, runs payroll, and produces the financial statements your accountant needs at year-end. The right setup from day one saves 3–5 hours per week and prevents the bookkeeping backlog that kills small company accounts.
Recommended Stack for New UK Companies
🥇 Xero — Core Accounting (Essential)
MTD-compliant · Xero Payroll included on Grow plan · Bank feeds from Starling and Airwallex · VAT return submission · Xero Advisor directory · From £16/mo. Xero 50% off via ThriveOnz360 →
🥈 Dext — Receipt & Expense Capture (Recommended)
Capture receipts by photo, extract data automatically, push to Xero coded. Eliminates manual data entry for expenses. From £20/mo. Dext vs Expensify vs Hubdoc comparison →
🥉 Airwallex — Business Account (Recommended)
Multi-currency business account with native Xero integration. Every transaction — GBP, USD, EUR — auto-posted to Xero in GBP at the real exchange rate. £0/month. Open free account →
✅ Step 8 Checklist
☐ Choose accounting software (Xero recommended)
☐ Connect Starling bank feed
☐ Connect Airwallex bank feed
☐ Set up chart of accounts with accountant
☐ Set up VAT return settings (if registered)
☐ Enable Xero Payroll (if paying salaries)
☐ Set up Dext for receipt capture
☐ Invite accountant as Xero advisor
⏱ Time: 2–4 hours · Cost: £16+/mo (Xero)
⚠️ Common Mistake
Keeping records in spreadsheets for the first year and then switching to Xero — resulting in months of manual data entry to back-fill. Set up Xero before your first transaction. Retroactive reconciliation is painful and expensive in accountancy time.
1st Formations Complete Package handles Steps 2, 4, 5 and 6 in one transaction
Companies House registration + Corporation Tax + VAT + PAYE all set up for you. Ideal if you want to skip the HMRC admin. View Complete Formations package →
Step 9: Get Your Legal Documents Right
A newly incorporated UK company comes with default Articles of Association from Companies House. These cover the basics but leave many practical governance questions unanswered. Before you take on any clients, hire anyone, or work with co-founders, you need several additional documents in place.
Documents Every New UK Company Needs
| Document | Why You Need It | Priority |
|---|---|---|
| Shareholders’ Agreement | Governs what happens if a co-founder leaves, wants to sell shares, or stops contributing. Without it, a departing founder keeps their shares. | Critical (if co-founders) |
| Director Service Agreement | Sets terms of your own engagement as a director. Required for IR35 and for clearly separating your director role from employment. | High |
| Client Contract / Terms of Business | Governs scope, payment, IP ownership, confidentiality, and liability with every client. Without it, you rely on verbal agreements that are almost impossible to enforce. | Critical (before first client) |
| Contractor / Freelancer Agreement | If you engage any PSC contractor, you need an IR35-compliant contract. Without one, HMRC treats the relationship as employment. See: IR35 and EOR: Deel Compliance → | High (if using contractors) |
| Employee Contracts | Legally required from day one of employment — written statement of particulars must be provided no later than day 1. | Critical (if hiring) |
| Privacy Policy + Cookie Policy | Required under UK GDPR for any website collecting personal data. Non-compliance = ICO enforcement. | High (if website) |
For legally binding e-signature on all contracts: E-Signature Legal Validity UK 2026 → and PandaDoc free eSign →
✅ Step 9 Checklist
☐ Shareholders’ Agreement (if co-founders)
☐ Director Service Agreement
☐ Client contract / Terms of Business
☐ Contractor agreements (if applicable)
☐ Employee contracts (if hiring)
☐ Privacy Policy and Cookie Policy (website)
☐ IP assignment agreement (assign any pre-company IP)
☐ Set up eSign for contract workflow (PandaDoc)
⏱ Time: 1–3 days · Cost: £0–1,000 (solicitor) or use templates
⚠️ Common Mistake
Starting work with a co-founder or client on a handshake. The first serious dispute will cost more in legal fees to resolve than a properly drafted shareholders’ agreement would have cost to produce. Don’t wait until there’s a problem.
Step 10: Build Your Ongoing Compliance Calendar
The final step is setting up a compliance calendar — a set of recurring reminders for every HMRC and Companies House deadline your company faces annually. Missing any one of these generates automatic fines that escalate if ignored. The total fine exposure for a small company that misses everything in one year can exceed £3,000.
Annual UK Company Compliance Calendar
| Obligation | Deadline | Fine if Missed |
|---|---|---|
| Corporation Tax registration | 3 months from trading start | £100 |
| Confirmation Statement (annual) | Within 14 days of review date (annually) | Strike-off risk |
| Annual Accounts (statutory) | 9 months after year-end (private Ltd) | £150–1,500 |
| CT600 Corporation Tax return | 12 months after accounting period end | £100–500+ |
| Corporation Tax payment | 9 months + 1 day after year-end | Interest + surcharge |
| VAT return (quarterly) | 1 month + 7 days after quarter end | Surcharge + interest |
| RTI FPS (payroll — monthly) | On or before each payday | £100/month |
| Self Assessment (director) | 31 January (online) for prior tax year | £100 + daily penalties |
✅ Step 10 Checklist
☐ Add all annual deadlines to calendar (with 4-week reminders)
☐ Set up automatic VAT return in Xero
☐ Set up RTI payroll schedule in Xero Payroll
☐ Diarise Confirmation Statement review date
☐ Confirm accountant’s year-end engagement scope
☐ Register director(s) for Self Assessment
☐ Set up Companies House WebFiling account
☐ File PSC (People with Significant Control) register
⏱ Time: 1–2 hours to set up · Then automated
💡 Pro Tip
Your Confirmation Statement review date is set automatically by Companies House as the date of incorporation (then annually). It’s easy to miss because it doesn’t come with a payday reminder. Miss it, and Companies House can strike the company off the register — reversible, but costly and stressful.
Frequently Asked Questions
Q: How long does it take to set up a UK limited company from scratch?
The Companies House registration via 1st Formations takes 3–6 hours once submitted. However, being fully operational — with a business bank account, HMRC registrations, accounting software, and your first contracts in place — typically takes 2–5 business days end-to-end if you follow this checklist in sequence. The most common delay is waiting for your UTR (Unique Taxpayer Reference) from HMRC (arrives ~14 days post-incorporation) — you don’t need it for Steps 3, 7, 8, or 9, so use that time productively.
Q: Do I need a registered office address and what happens if I use my home address?
Every UK limited company must have a registered office address in the same country as its registration (England/Wales, Scotland, or Northern Ireland). If you use your home address, it becomes publicly visible on the Companies House register — permanently, even after you change it. This is a privacy issue (anyone can look it up) and can cause practical problems if clients or cold callers start appearing at your door. 1st Formations includes a registered office address at their London offices on most packages. Once you have an office, you can change your registered office — the old address remains on historical filings but not as the current address.
Q: Can a non-UK resident form a UK limited company?
Yes — there is no residency requirement for UK company directors. A non-UK resident can form and direct a UK limited company provided they have a valid registered office address in the UK (provided by 1st Formations) and can be identified for Companies House purposes. However, the company will still be subject to UK Corporation Tax if it’s managed and controlled in the UK — and tax implications in your country of residence also apply. Seek tax advice for cross-border setups. 1st Formations regularly handles non-UK resident incorporations →
Q: What’s the cheapest way to set up a UK limited company?
The cheapest method is direct Companies House online filing at £50 — but it doesn’t include a registered office address (meaning your home address becomes public) or any guidance. Via 1st Formations, the e-Formation package starts at £12.99 including the Companies House fee, making it cheaper than direct filing while providing digital documents and support. For privacy, the Privacy Package at £52.99 includes a Year 1 London registered office — arguably better value than £50 direct with a public home address. For the full setup (CT + VAT + PAYE + formation), the Complete Formations package at £149.99 is the most cost-efficient all-in solution for most new founders. See: 1st Formations Review 2026 →
Q: Do I need a shareholders’ agreement if I’m the only shareholder?
No — if you are the sole director and sole shareholder, a shareholders’ agreement is not necessary (there’s no one to have a dispute with). You do still need: a Director Service Agreement (or at minimum a record of your engagement terms), your Articles of Association (provided by 1st Formations), and client contracts. If you bring in a co-founder at any point — even informally — a shareholders’ agreement becomes essential before they receive any shares.
Q: What is a Confirmation Statement and when do I need to file it?
A Confirmation Statement (formerly Annual Return) is a once-a-year Companies House filing that confirms your company’s basic information is correct: registered office, directors, shareholders, SIC codes, share structure. It is not a financial document — it just confirms nothing has changed (or updates what has). It’s due within 14 days of your review date (the anniversary of your incorporation date). Cost: £34 if filed online. Missing it triggers a Companies House reminder, then compulsory strike-off proceedings if ignored. Most accountants handle this as part of their annual package.
Q: When should I register for VAT voluntarily?
Register voluntarily if: (1) you buy significant amounts of VATable goods or services for your business and want to reclaim the 20% input VAT, (2) your clients are VAT-registered businesses who will reclaim the VAT you charge them anyway (so your pricing isn’t affected), or (3) you want to appear more established (VAT registration implies >£90K turnover). Avoid voluntary registration if: you sell primarily to consumers who pay VAT out of pocket, your margins are tight and 20% added to your prices would be uncompetitive, or your administrative capacity is limited. See: Making Tax Digital and VAT Guide UK 2026 →
Q: What’s the total cost of setting up and running a UK limited company in year one?
Approximate Year 1 costs for a simple UK limited company: Formation (1st Formations Privacy Package): £52.99 · Registered office renewal (Year 2+): £39.99/year · Confirmation Statement: £34 · Accounting software (Xero Starter): £192/year · Accountant (simple Ltd, 1 director): £1,000–2,400/year · Business bank accounts: £0 (Starling + Airwallex) · PAYE setup: free · Corporation Tax: whatever you owe on profits. Total Year 1 setup and running cost (excluding tax and your own salary): approximately £1,300–2,700. This compares favourably with operating as a sole trader through an expensive accountant with no liability protection.
Printable Checklist: 10 Steps to Launch Your UK Company
Pre-Launch (Steps 1–5)
☐ Step 1: Choose company name + confirm structure (Ltd)
☐ Step 2: Register at Companies House via 1st Formations
☐ Step 3: Open business bank account (Starling + Airwallex)
☐ Step 4: Register for Corporation Tax (within 3 months of trading)
☐ Step 5: Register for VAT if applicable (mandatory >£90K)
People & Payroll (Step 6)
☐ Step 6: Register as employer + set up PAYE + pension
Systems & Legal (Steps 7–10)
☐ Step 7: Appoint accountant (ACCA/ACA, Xero-certified)
☐ Step 8: Set up accounting software (Xero + Dext + bank feeds)
☐ Step 9: Legal documents (contracts, shareholders’ agreement, T&Cs)
☐ Step 10: Build compliance calendar (all deadlines, reminders)
Bonus: Ongoing Checks
☐ Director Self Assessment registration (if not already registered)
☐ PSC register filed at Companies House
☐ GDPR privacy notice on website
☐ IP assignment agreement (if building pre-company)
ThriveOnz360 — Growth Plan (Free Forever)
Start Your UK Company Today With 1st Formations
From £12.99 · Same-day Companies House registration · London registered office · All company documents included · Used by 500,000+ UK businesses. Growth members unlock: exclusive 1st Formations pricing · UK Company Formation Toolkit (HMRC deadline calendar, director salary optimiser, VAT decision guide, compliance calendar template) · Xero 50% off · Airwallex free account + multi-currency setup guide. Free to join — no credit card.
Related Articles
UK Company Formation
- How to Register a Company in the UK 2026: Step-by-Step →
- 1st Formations Review UK 2026: Independent Assessment →
- LTD vs Sole Trader UK 2026: Which Is Right for You? →
- UK vs Singapore: Where to Incorporate in 2026 →
UK Tax & Compliance
Disclaimer: This checklist is intended as a practical guide for founders setting up a UK limited company and does not constitute legal, tax, or financial advice. HMRC deadlines, fee amounts, and Companies House requirements are stated as of March 2026 — verify current requirements with HMRC and Companies House directly before acting. 1st Formations pricing reflects published rates at March 2026. ThriveOnz360 is an affiliate partner of 1st Formations and Airwallex — links to these services may earn a commission at no additional cost to you. All affiliate links carry rel="nofollow sponsored noopener" in accordance with Google guidelines. Consult a qualified accountant or solicitor for advice specific to your circumstances.

Former City of London fintech advisor and SME growth strategist with 12 years building lean tech stacks for founders across the UK and Southeast Asia. James has guided 500+ SMEs through software decisions that cut costs and unlock growth — and believes every founder deserves a trusted, independent voice on their side. James Hartley is the editorial pen name of the ThriveOnz360 editorial team.