How to Register a New Company at Companies House

Author: Marketing Team

At some stage, most UK businesses reach a point where they need to decide whether to become a limited company. That decision can be driven by growth, client requirements, or simply because staying informal no longer feels practical.

Registering a company at Companies House is the step that makes it official. It is also the step that causes unnecessary hesitation, mostly because people assume it is more complex than it actually is.

The process itself is not difficult. What matters is understanding what you are setting up, what information becomes public, and what responsibilities follow once the registration is complete.

Sole Trader and Limited Company: What Actually Changes

The simplest way to run a business in the UK is as a sole trader. You trade in your own name or a business name, you pay tax personally, and there is no legal separation between you and the business. That structure works well for many people, particularly in the early stages.

A limited company is different. When you register a new company at Companies House, you create a separate legal entity. The company exists in its own right. It earns income, owns assets, and takes responsibility for debts. You run it as a director, but it is not the same thing as you.

This distinction matters. It affects how tax works, how risk is handled, and how the business is perceived by others. It is also the reason limited companies must register at Companies House, while sole traders do not.

Should You Register as a Limited Company?

There is no fixed point at which incorporation becomes “necessary”. For some businesses, it makes sense almost immediately. For others, it never does.

People often choose to register a company at Companies House because they want clearer separation between personal and business finances. Others do it because clients prefer dealing with limited companies, or because profits have reached a level where company taxation becomes more efficient.

The trade-off is administration. Limited companies come with filing obligations. Accounts must be prepared. Confirmation statements must be submitted. Director responsibilities are real, not theoretical.

For many small businesses, the decision is less about ambition and more about readiness. If you are comfortable handling ongoing compliance, or putting professional accounting support in place, incorporation is usually manageable. If not, staying as a sole trader for longer can be sensible.

Costs Involved in Registering with Companies House

The fee charged by Companies House to register a company is relatively low and paid once. For most people, it is not the deciding factor.

Where costs tend to arise is around the practical setup. A registered office address is required, and that address is published publicly. Many directors choose not to use their home address and instead rely on a registered office address service.

There may also be costs associated with setting the company up correctly from the start, particularly if you use a professional company registration service rather than filing everything yourself.

These costs are usually about convenience and risk reduction rather than necessity.

Steps for Registering at Companies House

Once you decide to register at Companies House, the process follows a set order. It is worth slowing down here. Most mistakes happen when people rush.

Choosing a company name

Your company name must be unique and comply with naming rules. Certain words are restricted, and some names are rejected because they imply activities the company is not authorised to carry out.

When you register a company name at Companies House, it becomes legally protected. Changing it later is possible, but a hassle that can easily be avoided.

Directors and shareholders

Every company needs at least one director. Directors are responsible for running the company and ensuring it meets its legal obligations.

Shareholders own the company. In small businesses, these roles often overlap. You will need to provide personal details for both directors and shareholders during registration.

Registered office address

This is the address Companies House and HMRC will use for official correspondence. It appears on the public register.

If privacy matters, a virtual office can be used instead of a home address. This is common for remote businesses and freelancers incorporating for the first time.

Submitting the registration

Once the details are complete, you submit the application. Online registrations are usually approved quickly. If something is wrong, it is normally rejected with a reason given.

What happens after registration

Registering a company at Companies House does not automatically set everything else up.

You must register for Corporation Tax separately with HMRC. You will also need a business bank account, which cannot usually be opened until the company exists.

Official mail starts arriving almost immediately. This includes reminders and deadlines. Missing these can cause problems later. Many companies use a business mail box or a virtual office so that important correspondence is handled consistently, especially if the directors are not always at the registered address.

Ongoing compliance is the part people underestimate. Annual accounts and confirmation statements are not difficult, but they are unforgiving when missed. Systems matter more than enthusiasm at this stage.

Keeping the Administrative Side Under Control

Incorporation is often treated as a milestone. In practice, it is more like a shift in responsibility. The business becomes easier to separate from you personally, but harder to ignore administratively.

LowCost LetterBox works with businesses that want the structure of a limited company without unnecessary friction. Services such as registered office provision, mail handling, and company registration are designed to reduce the background noise that tends to build up once a company is live.

Contact us today if you are ready to register a company at Companies House. Setting those foundations early can prevent small administrative tasks from turning into persistent distractions later on.