Ground-Up Guide: Registering a UK Company in 2025
Starting a company in the UK in 2025 involves clear choices, new compliance checks, and a few fees that catch many first-time founders by surprise. This guide explains the practical steps to register with Companies House, what to prepare before you file, how taxes fit in, and where typical costs arise, so you can plan with confidence.
Registering a company in the UK in 2025 is more straightforward than it seems, provided you understand the sequence: choose the right structure, prepare key details, file with Companies House, set up your tax registrations, and organise your ongoing compliance. Recent reforms mean tighter identity checks, clearer address rules, and updated filing fees, so taking time to prepare will save effort later.
2025 Guide: How People Start Their Own Business from Scratch
Most founders begin by choosing a legal structure. Sole trader is simple and quick but offers no limited liability. A private company limited by shares (Ltd) limits personal liability and can appear more credible to customers and investors. LLPs suit professional partnerships. Your choice affects tax, responsibility, and how you raise money, so compare liability, administrative requirements, and expected profits.
Before you file, pick a unique company name and check it against restricted words and existing trademarks. Consider domain availability and social handles to avoid rebranding later. Draft a simple plan covering your target market, pricing model, early expenses, and cash needs for the first 6–12 months. Decide founders’ roles, share split, and vesting expectations, and note any intellectual property you may need to assign to the company.
What to Know Before Starting a Business from Scratch
“What You Should Know Before Starting a Business from Scratch” often comes down to responsibilities. Directors must act in the company’s best interests and keep accurate records. You will need: a registered office address in the same jurisdiction (England and Wales, Scotland, or Northern Ireland), a registered email address, at least one director, details of persons with significant control (PSC), a SIC code describing your activities, and articles of association (the default “model articles” suit many startups). A separate shareholders’ agreement is helpful for decision-making and exit terms.
Plan your tax and admin basics early. After incorporation, register for Corporation Tax within three months of starting to trade; HMRC will issue a UTR for the company. Consider VAT: the registration threshold is £90,000 of taxable turnover in a rolling 12 months, but voluntary VAT registration can help with input VAT recovery. If you will pay anyone, set up PAYE. Directors typically file Self Assessment returns for their personal income. Keep digital accounting records, choose bookkeeping software, and compare local services in your area for banking and accountancy to support due diligence checks.
How people build a business from the ground up
“How People Build a Business from the Ground Up: A Beginner’s Overview” usually includes a lean launch: validate demand, secure a business bank account, define a minimal offer, then iterate. When you file the incorporation, you will provide the registered office, director and PSC details, share capital statement, and articles. Identity verification is being phased in for directors and PSCs; expect to verify with Companies House directly or through an authorised agent. Digital filings are commonly approved within 24 hours; same-day options exist for urgent cases.
Below is a practical look at typical one-off and recurring costs when forming a company. It shows the government filing options and what common formation agents charge for basic packages, which usually bundle templates and optional address services.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Digital incorporation (standard) | Companies House | £50 |
| Same-day incorporation (digital) | Companies House | £78 |
| Paper incorporation | Companies House | £71 |
| Basic formation package (incl. gov fee) | 1st Formations | ~£63–£150 total, package-dependent |
| Basic formation package (incl. gov fee) | Rapid Formations | ~£63–£150 total, package-dependent |
| Basic formation package (incl. gov fee) | Companies Made Simple | ~£60–£120 total, package-dependent |
| Confirmation statement (digital) | Companies House | £34 per year |
| Registered office service | Formation agents/accountants | ~£39–£120 per year |
| Small-business accountancy | Local firms/online providers | ~£40–£150 per month |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
After incorporation, open a business bank account. Banks and fintech platforms will run identity and anti-money-laundering checks; having incorporation documents, proof of address, and a clear business description speeds approval. Set up your accounting system, decide your VAT scheme (standard, cash accounting, or flat rate, if eligible), and create a simple monthly checklist for invoices, expenses, and bank reconciliation. Store board and shareholder decisions and keep your PSC information current.
Know your filing calendar. Your first accounts are due typically 21 months after incorporation, then annually; Corporation Tax is due nine months and one day after your accounting period ends; the Company Tax Return (CT600) and statutory accounts are filed with HMRC, while abbreviated accounts may be filed at Companies House depending on size. A confirmation statement is due annually to confirm shareholders, PSCs, and other company data. Keep an eye on evolving Companies House identity verification requirements and the “appropriate address” rules for your registered office and registered email.
Finally, think operationally. Separate personal and business spending from day one. Put basic policies in place—data protection (ICO registration may apply), information security, and a simple risk register. Arrange insurance appropriate to your sector, such as public liability or professional indemnity. Use contracts and clear payment terms. Start with a minimal set of metrics: cash runway, monthly recurring revenue (if applicable), and gross margin. Incrementally refine your offer based on customer feedback while staying compliant with your filings and tax obligations.
Conclusion: Registering a UK company in 2025 is a manageable process when you prepare the essentials—structure, governance, taxes, and costs—before filing. With a clear plan, accurate records, and attention to the latest Companies House requirements, you can lay stable foundations and focus on serving customers and improving your product.
