Establishing a limited company in the UK

A limited company in the UK

There are number of steps needed in order to make incorporate a new company.

What is a limited company?

A limited company is a way for a company to become incorporated that limits the liability of its shareholders. It is the equivalent of an SARL in France.

Corporate Name

The name of the company must be approved by Companies House and allows the name to be protected.


There are no limits to the maximum amount of shareholders a company can have; however, there must be at least one shareholder and one director.

This type of company limits the liability of its shareholders and maintaining the accounts of the shareholders separate from the those of the company.

All the shareholders agreeing to form the company must sign the “Memorandum of Association,” a legal statement and the “Articles of Association,” which are the rules that the shareholders will adhere to while running the company.

The price of each share can be as low as £1 and face value of the shares is known as the aggregate nominal value.

The Director

The director of the limited company has several duties to fulfill both before incorporation and while the company is running. The director must also be approved and they will go through checks by Companies House. Prior to incorporation, it is necessary to have a registered address, a list of shareholders with significant control, the articles of association, and the standard industry classification code (SIC).


The capital requirements can be as low as £1.

The Incorporation Process

When registering the company, a “statement of capital” must be submitted. It will contain the number of shares and their total value as well as the names and addresses of all the shareholders.

The company is incorporated until the director receives the Certificate of Incorporation.

The Certificate of Incorporation will contain the following information:

• The name and registered number of the company;
• The date of its incorporation;
• That the company type is private limited by shares;
• The location of the company

The certificate will be authenticated by the registrar's official seal.

While the company is still active, it is required to keep a clear record of its finances, any loans and/or obligations it owes, pay the corporate tax, and value added tax (VAT) and report to HM Revenue and customs (HMRC).