How to Set Up a Limited Company in the UK: A Simple Step-by-Step Guide

You've decided to make it official. Going from "I do a bit of freelance work" to a proper limited company feels like a big, bureaucratic leap — forms, legal terms, a government website that looks like it was built in 2003. Here's the reassuring truth: setting up a limited company in the UK is quicker and cheaper than almost anyone expects. Most of it happens online in an afternoon.

We're Method Spaces, and we help new companies in Manchester and Bolton get off the ground — often starting with the business address they need to register. This is the plain-English, step-by-step version of how it's done, and where the common snags are. (It's a general guide, not legal or tax advice — for the fine print, the official source is always gov.uk.)

What is a limited company, and why set one up?

A limited company is a business that exists as its own legal entity, separate from you personally. That separation is the whole point: if the company runs into trouble, your personal finances are generally protected — your liability is "limited" to what you put in. It's a different setup from being a sole trader, where you and the business are legally the same thing.

Beyond the protection, going limited tends to make a business look more established to clients, suppliers and banks, and it can be more tax-efficient as you grow. It's the natural step up when the hobby becomes a real thing. If you're still shaping the idea itself, our guide on how to write a business plan is a good companion to this one.

What do you need before you register?

You can set a company up in one sitting if you've got a few things decided first. None of it is complicated — it's mostly choices you'll have half-made already. Here's the checklist:

You'll also name anyone with "significant control" — usually the main owners — and agree to standard rules for running the company (the memorandum and articles of association, which come as ready-made templates). Don't overthink those; most small companies use the standard versions.

How do you actually register the company?

You register directly with Companies House, online, and it's refreshingly quick. You fill in the details above, pay a modest fee — £100 to register online at the time of writing — and your company is usually approved within 24 hours. You'll get a certificate of incorporation with your company number, and that's it: you're official.

You can register through the Companies House service yourself, or use a formation agent or accountant who'll do it for a small extra fee. Doing it directly is genuinely simple for a straightforward company, so unless your ownership is complicated, there's no need to pay someone else for the basic bit.

What's a registered office address — and can you use a virtual office?

Your registered office is the official address for your company on the public record — where Companies House and HMRC send things. Here's the catch many people miss: since 2024, it has to be an "appropriate address," meaning a real address where post actually reaches someone. A PO box on its own no longer cuts it.

It also goes on the public register, so if you use your home address, that's out there for anyone to find. Plenty of founders would rather not have their house listed — which is exactly why a business address at a real building is popular for this. Our guide to virtual offices explains how that works, and our virtual office gives you an address at a real Manchester or Bolton building rather than your front door. Whichever provider you look at, just confirm the address can be used as a registered office before you rely on it.

What do you need to do after the company is set up?

Incorporation is the start, not the finish — but the next steps are manageable. The main ones: register for Corporation Tax with HMRC (you can often do this at the same time as incorporating), open a business bank account to keep company money separate from your own, and keep proper records from day one. It's far easier to start tidy than to untangle it later.

Depending on your plans, you may also need to register for VAT once your turnover passes the threshold, and set up PAYE if you take on employees. The official steps for each live on gov.uk, and this is the point where a good accountant earns their fee. Keep the admin simple and it stays simple.

When you're ready for an office

A lot of companies are born at a kitchen table and registered to a virtual address — and that's a perfectly good place to start. But there usually comes a day when you need somewhere to actually work, meet people, or put a team. That's where we come in.

Because our virtual office lives in the same buildings as our physical ones, you can start with just the address and move into a real desk in Manchester or Bolton when the time comes — without changing your registered address or your letterhead. New companies start small with us all the time; our explainer on what a serviced office is covers how the physical side works.

Get a quick quote for a virtual office or a desk, or call us on 0161 237 9990 — we're happy to point a brand-new company in the right direction.

Method Spaces — Portland Plaza, 109 Portland Street, Manchester M1 6DN, and Bradshawgate, 27 Wood Street, Bolton BL1 1DY.

Frequently asked questions

How long does it take to set up a limited company?

Usually less than a day. If you register online directly with Companies House and have your details ready, your company is typically approved within 24 hours. Registering by post takes longer, so most people do it online.

How much does it cost to set up a limited company in the UK?

Very little. Registering online directly with Companies House costs a modest fee — £100 at the time of writing — and your company is usually approved within 24 hours. Using an accountant or formation agent adds a small charge on top for doing it on your behalf.

Can I use my home address for my limited company?

You can, but your registered office address appears on the public record, so your home address becomes searchable by anyone. Many founders use a separate business address instead to keep their home private. Since 2024, the address must be a real one where post reaches someone, not just a PO box.

Do I need an office to start a limited company?

No. You need a registered office address, but that doesn't have to be a physical workspace — a virtual office address works, and many companies start that way. You can move into actual office space later, when you need somewhere to work or grow a team.

Author Bio

Mitch | Content Marketing, Method Spaces

Mitch is part of the marketing team at Method Spaces, a Manchester-based serviced office provider with locations in Portland Street, Manchester and Bradshawgate, Bolton. He covers workspace trends, small business growth, and the practicalities of finding the right office space for growing teams.

Method Spaces was founded by entrepreneur Bijan Todd, who converted a Manchester warehouse into a hub for small businesses — and the company has been helping founders and growing teams find their footing ever since.

This article was written based on direct knowledge of the UK serviced office market and Method Spaces' own experience working with small businesses and startups across Manchester.