How incorporating a UK company works, step by step

What are the steps to incorporate a company?

There are five, in this order. Identity verification comes first because the application cannot be completed without each director's personal code, and the rest follows the application. This page is about the filing itself. The choices that go into it, such as shares and who counts as a person with significant control, are covered in the director's journey.

Step 1: verify each director's identity

Every director must verify their identity with Companies House before the company can be incorporated. The application asks for the director's personal code and a confirmation that verification has been completed.

You can verify online with GOV.UK One Login using a biometric passport, UK photo driving licence, UK biometric residence permit or card, or UK Frontier Worker permit. If you have none of those, you may be able to use bank or building society details with your National Insurance number, or go to a Post Office. An authorised corporate service provider, such as an accountant or solicitor, can also verify you. The code is personal to you, so a director of several companies uses the same one for each.

Step 2: gather the details the application asks for

The application needs all of these, so having them ready is most of the work:

• a company name, which must end in "Limited" or "Ltd" and cannot be reserved in advance
• a registered office address, which must be an "appropriate address" where documents reach someone acting for the company, and a registered email address Companies House can use
• a SIC code describing what the company does
• each director's service and residential address
• a statement of capital and the initial shareholdings
• details of each person with significant control, or a statement that there are none
• your choice of articles of association, and a statement that the company is formed for lawful purposes

Our guide to choosing a company name covers the name rules, and what to do if a name is rejected covers a refusal.

Step 3: apply online or by post

Online costs £100 and is normally processed within 24 hours, longer if the application is complex. Software filing has the same £100 standard service and a £156 same-day option if you apply by 3pm, Monday to Friday. Paper costs £124 and usually takes longer than online.

A paper application needs form IN01 with the fee, plus the memorandum of association and the articles, unless you fully adopt the model articles. Any sensitive word in the name needs supporting approval.

Step 4: receive the certificate of incorporation

The certificate is conclusive evidence that the company is registered. It shows the company's name and number, its incorporation date, the type of company and the registered office. The incorporation has no legal effect until it is issued, so wait for it before opening bank accounts or ordering company stationery.

Step 5: what to do once you have the certificate

GOV.UK lists adding Corporation Tax services to your HMRC business tax account as the first task after registration. You then keep company and accounting records, file a confirmation statement, and file accounts and tax returns. If you will be registered for VAT, that is a separate registration.

You do not need to start trading straight away: a company can be left dormant. Open a business bank account in the company's name once you have the certificate, so company money stays separate from yours.