Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer To start a limited company you register it at Companies House, choosing a name, directors, shareholders and shares. You then register for corporation tax with HMRC, open a business bank account, and set up payroll and accounting. Getting the shares and pay structure right early saves tax later.

How to set up, step by step

  1. Choose a name and structure. Check the name is available, and decide on directors, shareholders and how shares are split.
  2. Register at Companies House. Incorporate online, providing your details and a registered office address.
  3. Register for corporation tax. Do this with HMRC within 3 months of starting to trade.
  4. Open a business bank account. A company must keep its money separate from your personal finances.
  5. Set up payroll and accounting. Register as an employer if you will take a salary, and put simple bookkeeping in place from day one.

The decisions that matter early

How you split shares affects dividends and control, especially if a spouse or partner is involved. Your salary and dividend plan affects tax from the first month. And keeping clean records from the start makes every future filing painless. A short conversation before you incorporate can save a lot later.

Setting up your company?

The early choices on shares and pay shape your tax for years. TaxTune sets your company up correctly, registers everything, and gets your pay and records right from day one.

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Frequently asked questions

How do I start a limited company?

Register it at Companies House with a name, directors, shareholders and shares, then register for corporation tax with HMRC, open a business bank account, and set up payroll and accounting.

How much does it cost to set up a company?

The Companies House registration fee is modest, and you can incorporate online. The bigger considerations are getting the shares, pay and records set up correctly from the start.

When do I register for corporation tax?

Within 3 months of starting to trade. HMRC then knows to expect a company tax return and payment.

Do I need a business bank account?

Yes. A limited company is a separate legal entity and must keep its money separate from your personal finances, so a dedicated business account is required.

How should I split the shares?

It depends on who is involved and your plans, and it affects dividends and control. Getting it right at the outset, especially where a spouse or partner is involved, can save tax and complications later.