{"id":5791,"date":"2019-02-11T18:22:34","date_gmt":"2019-02-11T18:22:34","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=5791"},"modified":"2025-02-20T10:50:28","modified_gmt":"2025-02-20T10:50:28","slug":"how-to-form-limited-company","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-form-limited-company\/","title":{"rendered":"How to form a limited company: 5 requirements"},"content":{"rendered":"            <div class='post-lastupdated'>\n                <strong>Last updated: 20 Feb 2025<\/strong>\n            <\/div>\n        \n<p>The UK has worked hard to make starting your own company easy, and this includes incorporating your business as a limited company. Below, <span class=\"TextRun Highlight SCXW238862442 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">we provide a list of 5 <\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">things<\/span> <span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">you\u2019<\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">ll<\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\"> n<\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">ee<\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">d <\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">before you begin the <\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">process<\/span><span class=\"NormalTextRun SCXW238862442 BCX0\" data-ccp-parastyle=\"heading 1\">.<\/span><\/span><span class=\"EOP SCXW238862442 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:450}\">\u00a0<\/span><\/p>\n            <div class=\"key-takeaways-shortcode\" role=\"alert\">\n                <h3>\n                    <i class=\"fa fa-solid fa-key\"><\/i>\n                    <span>Key Takeaways<\/span>\n                <\/h3>\n                <div class=\"key-takeaways-shortcode__content\">\n                    <\/p>\n<ul>\n<li>To register a limited company in the UK, you need a unique company name, a registered office address, a service address for directors and shareholders, at least one director, and at least one member (shareholder).<\/li>\n<li>Both the registered office address and service address of directors and key personnel are made publicly accessible. To protect personal privacy, businesses can Quality Company Formations&#8217; Registered Office and Service Address Services.<\/li>\n<li>Beyond the five key requirements, companies must also select a company structure, a Standard Industrial Classification (SIC) code, prepare a memorandum and articles of association, and maintain a People with Significant Control (PSC) register.<\/li>\n<\/ul>\n<p>                <\/div>\n            <\/div>\n        \n<h3>What do I need to form a limited company?<\/h3>\n<h4>1. A company name<\/h4>\n<p>One of the most exciting aspects of company formation is <a class=\"Hyperlink SCXW1028076 BCX0\" href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/7-tips-for-choosing-a-company-name\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-wpel-link=\"internal\"><span class=\"TextRun Highlight Underlined SCXW1028076 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW1028076 BCX0\" data-ccp-charstyle=\"Hyperlink\">choosing a company name<\/span><\/span><\/a><span class=\"TextRun Highlight SCXW1028076 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW1028076 BCX0\">.<\/span><\/span> <span class=\"TextRun Highlight SCXW1028076 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW1028076 BCX0\">Here <\/span><span class=\"NormalTextRun SCXW1028076 BCX0\">are <\/span><span class=\"NormalTextRun SCXW1028076 BCX0\">the <\/span><span class=\"NormalTextRun SCXW1028076 BCX0\">rules <\/span><span class=\"NormalTextRun SCXW1028076 BCX0\">when it comes to naming your company<\/span><span class=\"NormalTextRun SCXW1028076 BCX0\">:<\/span><\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\">Choose a unique company name.<\/span> <span data-contrast=\"none\">It can\u2019t be the same name as an existing registered company, and it must not be deemed\u00a0too similar either.<\/span><span data-contrast=\"none\"> To determine if the name you\u2019d like to use is available or taken, use our <\/span><a href=\"https:\/\/www.qualitycompanyformations.co.uk\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-contrast=\"none\">company name search tool<\/span><\/a><span data-contrast=\"none\">.<\/span><\/li>\n<li><span data-contrast=\"none\">Do not use offensive or sensitive words.<\/span><span data-contrast=\"none\"> You\u2019re not allowed to suggest any connection to the government or any public authority, nor can you use any words otherwise protected, unless you have express permission from the relevant authority.<\/span><\/li>\n<li><span data-contrast=\"none\">Limit it to 200 characters and end it with either \u201climited\u201d or its abbreviation \u201cLTD\u201d.<\/span><span data-contrast=\"none\"> Some exemptions do exist.<\/span><\/li>\n<\/ul>\n<p>For further guidance, refer to the <a href=\"https:\/\/www.gov.uk\/government\/publications\/incorporation-and-names\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">official guidance on company name rules and requirements<\/a>, which includes the full list of restricted &#8216;sensitive&#8217; words and expressions.<\/p>\n<h4>2. Registered office address<\/h4>\n<p>Your company\u2019s\u00a0<a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/registered-office-i-need-one\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">registered office address<\/a> is its legal headquarters; it&#8217;s home in the eyes of the law. Every registered company in the UK must have one.<\/p>\n<p>This is the address governing bodies use to send official company correspondence and legal documents. It is also used for your statutory company registers.<\/p>\n<p>This is the address that will be used for the delivery of all government correspondence with your company, as well as for storing your statutory company registers for inspection. There are several rules surrounding the type of address you can use as a registered office:<\/p>\n<ul>\n<li>It must be in the jurisdiction in which you incorporate your company (England and Wales, Scotland, or Northern Ireland). Whilst you are free to change your registered office at any point after incorporation, you cannot change its jurisdiction without deregistering your company then reregistering it in the new jurisdiction.<\/li>\n<li>It must be a physical address<\/li>\n<li>You cannot use a PO Box number or DX number<\/li>\n<\/ul>\n<p>It\u2019s important to note that your company\u2019s registered office address will be made publicly available on the <a href=\"https:\/\/www.gov.uk\/guidance\/your-personal-information-on-the-public-record-at-companies-house\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">central register of companies<\/a>. Therefore, it is not ideal to use your residential home address.<\/p>\n<p>To protect your personal address from being available publicly, Quality Company Formations offers a handy <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/services\/registered-office-address\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Registered Office Address Service<\/a>. For just \u00a339 plus VAT per year, you can register your office from our prestigious Covent Garden location and we will provide you with your incoming mail so you never miss an important document.<\/p>\n<h4>3. Service address<\/h4>\n<p><span class=\"TextRun Highlight SCXW27703258 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW27703258 BCX0\">All company directors, secretaries, subscribers, <\/span><\/span><a class=\"Hyperlink SCXW27703258 BCX0\" href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/understanding-confirmation-statement-psc-register\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-wpel-link=\"internal\"><span class=\"TextRun Highlight SCXW27703258 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW27703258 BCX0\" data-ccp-charstyle=\"Hyperlink\">People with Significant Control<\/span><\/span><\/a><span class=\"TextRun Highlight SCXW27703258 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW27703258 BCX0\"> (PSC), and LLP members need to provide a service address when incorporating a company. The service address is the official contact address that HMRC and Companies House uses to contact <\/span><span class=\"NormalTextRun SCXW27703258 BCX0\">these people <\/span><span class=\"NormalTextRun SCXW27703258 BCX0\">in relation to <\/span><span class=\"NormalTextRun SCXW27703258 BCX0\">their<\/span><span class=\"NormalTextRun SCXW27703258 BCX0\"> role in the company.<\/span><\/span><span class=\"EOP SCXW27703258 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p>The following rules apply to a service address:<\/p>\n<ul>\n<li>It can be anywhere in the UK or overseas<\/li>\n<li>It must be a physical address<\/li>\n<li>You cannot use a PO Box number or DX number<\/li>\n<li>Your service address can be the same as your registered office address<\/li>\n<li>You are only allowed to use one service address at a time, but you can change your service address at any time<\/li>\n<\/ul>\n<p>Just like your registered office address, the service address of members will be displayed on the public register.<\/p>\n<p><span class=\"TextRun Highlight SCXW45905748 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW45905748 BCX0\">Again, for those who wish to protect their\u00a0personal address from being\u00a0<\/span><\/span><span class=\"TextRun Highlight SCXW45905748 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW45905748 BCX0\"><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">publicly available, Quality Company Formations offers a\u00a0<a href=\"https:\/\/www.qualitycompanyformations.co.uk\/services\/directors-service-address\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Directors Service Address<\/a>. For just \u00a326 plus VAT per year, you can have your mail sent to our Covent Garden location, and we will forward <\/span>your correspondence<\/span><span class=\"NormalTextRun SCXW45905748 BCX0\">.<\/span> <\/span><span class=\"EOP SCXW45905748 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335557856&quot;:16777215,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\n<h4>4. At least one director<\/h4>\n<p>To form a limited company, you will need to appoint at least one natural (human) <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/what-is-a-limited-company-director\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">company director<\/a>. It is their responsibility to make decisions on behalf of the company and oversee day-to-day operations. Almost anyone is allowed to be a company director, the only restrictions being:<\/p>\n<ul>\n<li>You cannot be under the age of 16<\/li>\n<li>You cannot be an <a href=\"https:\/\/www.debtadvisorycentre.co.uk\/blog\/what-does-undischarged-bankrupt-mean-0-4051-0#:~:text=Undischarged%20bankrupt%20is%20a%20legal,debts%20that%20you%20cannot%20afford.\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">undischarged bankrupt<\/a><\/li>\n<li>You cannot be a <a href=\"https:\/\/www.gov.uk\/search-the-register-of-disqualified-company-directors\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">disqualified director<\/a> whose term of disqualification isn\u2019t yet expired<\/li>\n<li>You cannot be the auditor of the company<\/li>\n<\/ul>\n<p>Directors aren\u2019t fixed appointments. New ones can be appointed and old ones can be removed as necessary after incorporation, in accordance with the company\u2019s articles of association.<\/p>\n<h4>5. At least one member<\/h4>\n<p>Members are the people who own a company, and you will need at least one member to register your company.<\/p>\n<p>The vast majority of companies are private companies limited by shares, whose purpose is to make a profit and distribute it to the owners or shareholders.<\/p>\n<p>Where the company is to be limited by guarantee, the members agree to \u2018guarantee\u2019 a certain amount of money to pay into the company if it ever experiences financial difficulty.<\/p>\n<p>                                                    <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/business-bank-account-company\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">Should I open a business bank account for my company?<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/when-to-convert-from-sole-trader-to-limited-company\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">When should I convert from sole trader to limited company?<\/span><\/a>\n                                                                        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/why-use-company-formation-agent\/\" class=\"related\" data-wpel-link=\"internal\"><span class=\"related-title\">Why use a company formation agent to set up a company?<\/span><\/a>\n                    <\/p>\n<p>The director and shareholder can be the same person, so if you are forming a company on your own, you can name yourself for both positions.<\/p>\n<h5><span class=\"TextRun Highlight SCXW232861661 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW232861661 BCX0\" data-ccp-parastyle=\"heading 5\">Can a director and shareholder be the same person?<\/span><\/span><\/h5>\n<p><span class=\"TextRun SCXW124723799 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW124723799 BCX0\">The director and shareholder can be the same person, so if you are forming a company on your own, you can name yourself for both positions.<\/span><\/span><span class=\"EOP SCXW124723799 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h3>Other company incorporation requirements<\/h3>\n<p>The five items mentioned above are the things you need to get the company formation process started. There are other matters to consider when incorporating a company, but these are supplied to you by your <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">company formation agent<\/a> as part of the online registration service.<\/p>\n<h4>Standard Industrial Classification (SIC) code<\/h4>\n<p>A <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/choosing-sic-code-limited-company\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">SIC code<\/a> identifies the sort of business your company will undertake and is used for information purposes by a number of third parties including government agencies. Your company needs to submit at least one of these codes on incorporation. Quality Company Formations supply a SIC code finder during the registration process, making it easy for you to choose your SIC code or codes.<\/p>\n<h4>Memorandum and articles of association<\/h4>\n<p>These two documents make up the foundation of your company\u2019s constitution<em>. <\/em><\/p>\n<p>The memorandum is a declaration by the company\u2019s first shareholder or shareholders agreeing to form a company. The articles of association outline the basic rules and governance of the company (such as how decisions are to be made and what powers are granted to the directors).<\/p>\n            <div class=\"hubspot_shortcode\">\n                <a href=\"https:\/\/hubspot.sjv.io\/OrKdGZ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_mobile.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-mobile\">\n                    <img decoding=\"async\" src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_desktop.png\"\n                        alt=\"Get Started With HubSpot's Free Tools.\"\n                        class=\"hubspot_shortcode-desktop\">\n                <\/a>\n            <\/div>\n        \n<p>Under the Companies Act 2006, companies can use the <a href=\"https:\/\/www.gov.uk\/government\/publications\/model-articles-for-private-companies-limited-by-shares\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">\u2018Model Articles\u2019<\/a>, which are a basic set of articles that can be used if you do not have or wish to create your\u00a0own.<\/p>\n<p>After incorporation, the memorandum becomes a historical document and can never be changed, but your articles can be amended with the agreement of the shareholders.<\/p>\n<h4>Company type<\/h4>\n<p>A company limited by shares is the most common type in the UK and the go-to choice for most businesses. However, when you reach the incorporation stage, you may find it appropriate to form a different type of company.<\/p>\n<p>Examples include limited by guarantee (often used by non-profit organisations), <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/limited-liability-partnership\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">limited liability partnership<\/a> (LLP), and public limited company (PLC). You cannot change a company type following incorporation.<\/p>\n<h4>People with Significant Control (PSC) Register<\/h4>\n<p>Almost all companies registered in the UK are required to record all <a href=\"https:\/\/www.gov.uk\/guidance\/people-with-significant-control-pscs\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">People with Significant Control<\/a> on incorporation. Thereafter, these details must be entered and kept up to date in the PSC register, which records every individual and relevant corporate entity that has control over the company.<\/p>\n<h3>Choose company formation<\/h3>\n<p>Company formation is the process of registering a business as a limited company. By forming (or \u2018incorporating\u2019) a limited company, you will be turning your new business into an independent entity in the eyes of the law.<\/p>\n<p>This means there is a separation between your finances, assets, and contracts and those of the business. As the owner of your new limited company, you can only be held financially liable for the amount up to the <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/company-shares-paid-partly-paid-and-unpaid-explained\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">nominal value of the shares<\/a> you have in that company. This is called \u2018limited liability&#8217;.<\/p>\n<p>Quality Company Formations is here to make the process of forming a company as simple and efficient as possible. Our range of affordable company formation packages helps you pick the services tailored to your needs. We do detailed checks to ensure your company is built with compliant foundations, and by choosing us, you can start trading with your official company name in as little as 24 hours.<\/p>\n<p>Thank you for reading. Leave a comment below or get in touch to ask any questions before you start forming your UK limited company.<\/p>\n            <div class=\"complete_package__shortcode\">\n                <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/fully-inclusive-package\/\" data-wpel-link=\"internal\">\n                    <img decoding=\"async\"\n                        src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_sidebar.png?v=4\"\n                        alt=\"Fully Inclusive Package\"\n                        class=\"complete_package__mobile\"\n                    \/>\n                    <img decoding=\"async\"\n                        src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_banner.png?v=4\"\n                        alt=\"Fully Inclusive Package\"\n                        class=\"complete_package__desktop\"\n                    \/>\n                <\/a>\n            <\/div>\n        \n"},"excerpt":{"rendered":"<p>The UK has worked hard to make starting your own company easy, and this includes incorporating your business as a limited company. Below, we provide a list of 5 things you\u2019ll need before you begin the process.\u00a0 What do I need to form a limited company? 1. A company name One of the most exciting&hellip;<\/p>\n","protected":false},"author":10,"featured_media":6081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[1231],"tags":[],"class_list":["post-5791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-formation","category-1231","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Form a Limited Company: 5 Requirements<\/title>\n<meta name=\"description\" content=\"Discover the 5 things you need to form a limited company, including a company name, statutory addresses, officers and members, and more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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more.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-form-limited-company\/","og_locale":"en_GB","og_type":"article","og_title":"How to form a limited company: 5 requirements","og_description":"Discover the 5 things you need to form a limited company, including a company name, statutory addresses, officers and members, and more.","og_url":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-form-limited-company\/","og_site_name":"Quality Formations Blog","article_published_time":"2019-02-11T18:22:34+00:00","article_modified_time":"2025-02-20T10:50:28+00:00","og_image":[{"width":1500,"height":750,"url":"https:\/\/www.qualityformationsblog.co.uk\/wp-content\/uploads\/2019\/02\/5-things-you-need-to-form-a-limited-company.jpg","type":"image\/jpeg"}],"author":"Nicholas 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