1. Check if your ideal company name is available
Check if your ideal company name is available to register. If another company has registered the same name, you will have to choose a different one. For more information about rules and restrictions, read Naming your business. Check the Trade Marks Register of the UK Intellectual Property Office to make sure your chosen name is not the same as an existing trade mark. Ask a lawyer if you are unsure about this.
For more information on naming your business, read How to choose a name for your business.
2. Choose a registered office address
A company must have a registered office address where notices, letters and reminders can be delivered to the company. It does not need to be an address where day-to-day business is carried out, so it could be your accountant’s address or a director’s address for example. Be aware that the registered office address will be available on the public record at Companies House (Companies House in Wales for companies registered in England and Wales, and Companies House in Edinburgh for companies registered in Scotland). A business risks being struck off the register or wound up if they cannot be contacted at an address.
3. Decide the type of company you want to form
A private company limited by shares is the most common type of company. A company of this type has a share capital and the liability of each member is limited to the amount, if any, unpaid on their shares. For example, if a company has one member (shareholder) and they own 20,000 shares at a value of £1 they would be liable for £20,000 (if unpaid) at the time of winding up.
Other types of companies are:
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private company limited by guarantee (limited to amount guarantors agree to contribute to company assets if the company is wound up)
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private unlimited company (directors or shareholders are liable for all debts)
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public limited company
For more information, read Private limited companies.
4. Choose who you want to run the company
Company director
Private companies are required to have at least one director who must be an individual (as opposed to a company acting as a director).
All individuals actings as company directors:
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must be at least 16 years of age
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must not have been previously disqualified from acting as a company director
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must not be going through the process of bankruptcy
For more information about company directors, read The role of a company director and Different types of company director.
Company secretary
Private limited companies are not required to have a company secretary anymore (a person who ensures compliance and updates Companies House with ongoing changes). These responsibilities should be carried out by company directors. Public limited companies are however required to have a company secretary as they are subject to more regulation.
The company secretary can also be a company director, but cannot:
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be the company’s auditor
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must not be going through the process of bankruptcy
5. Decide how many shares you want to issue and at what value
A very simple way to form a company is to issue at registration one share at the value of £1, using the sole director as the shareholder. Additional shares can be issued at a later date - for more information on this, read Share transfers and issuing new shares.
For more information on the different types of shares, read Types of shares or Ask a lawyer.
Read What happens after you register your company to find out what happens after registering your company.
