Set up a limited company, structured to save tax from day one

A qualified accountant sets up your limited company at Companies House and structures it to be tax-efficient, usually within 24 hours.

Want to set up a limited company without getting the tax wrong? Setting up a limited company means registering your business at Companies House so it becomes its own legal entity, with a company number and a certificate of incorporation. Filing the form is the easy part. We register your limited company and structure it to be tax-efficient from day one: a qualified, named accountant handles your SIC codes, share capital, PSC register and the identity verification that is now mandatory, so you start trading correctly. Most digital incorporations are confirmed within 24 hours.

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How to set up a limited company: step by step

You can set up a limited company yourself at Companies House, or have an accountant do it and structure it properly at the same time. Either way, these are the steps involved:

  1. Choose a company name that is not already taken and does not use a sensitive or restricted word.
  2. Appoint at least one director, who must be aged 16 or over, and decide who your shareholders are.
  3. Set your share capital: how many shares, their value and who holds them. Most small companies start with a single ordinary share worth £1.
  4. Work out your PSC register, meaning every person with significant control who owns more than 25% of the shares or voting rights.
  5. Pick the SIC code that describes what your company does, and choose a registered office address, which goes on the public record.
  6. Prepare your memorandum and articles of association, the documents that set out how the company is owned and run.
  7. Verify your identity. Since 18 November 2025 every director and person with significant control must verify their identity through GOV.UK One Login or an Authorised Corporate Service Provider.
  8. File the incorporation with Companies House. Digital applications cost £100 and are usually approved within 24 hours, after which you receive your certificate of incorporation and company number.
  9. Register for Corporation Tax with HMRC within three months of starting to trade, and set up PAYE or VAT if you need them.

Get a detail wrong at step three or four and you can pay to unpick it later. We handle all nine steps for you and set the company up to be tax-efficient from the start.

Our expertise covers

What's included in our company formation service?

  • 01

    Companies House registration

    We complete and submit your IN01 incorporation digitally, including company name check, registered office, director and PSC details. The Companies House digital filing fee is £100 from 1 February 2026 (£124 by post), and digital applications are usually registered within 24 hours.

  • 02

    Identity verification (ECCTA)

    Since 18 November 2025, identity verification is a legal requirement for all directors and people with significant control. We guide you through verifying via GOV.UK One Login or as your Authorised Corporate Service Provider, so your incorporation is not rejected or delayed.

  • 03

    Share structure and PSC register

    We set your share classes, allotments and shareholdings to suit your goals, whether sole director or multiple founders. We register every person with significant control, the beneficial owners holding more than 25% of shares or voting rights, correctly from the outset.

  • 04

    SIC codes and registered office

    We select the correct SIC codes that describe your trade accurately for Companies House and HMRC, and can provide a registered office and director service address to keep your home address off the public register.

  • 05

    HMRC and Corporation Tax registration

    We register your new company for Corporation Tax, set up your PAYE scheme if you will run payroll, and assess whether to register for VAT against the £90,000 turnover threshold (deregistration £88,000), including voluntary registration where it benefits you.

  • 06

    Director pay and dividend planning

    From day one we plan a tax-efficient salary and dividend mix. Dividends are taxed at 10.75%, 35.75% and 39.35% above the £500 dividend allowance, and we balance these against Corporation Tax at 19% to £50,000 and 25% over £250,000 to maximise your take-home pay.

What you need to set up a limited company

Before you set up a limited company it helps to have a few things ready. This is the checklist we run through with you:

  • A company name that passes the Companies House availability check
  • At least one director aged 16 or over, with a service address
  • Your shareholders and your share capital, the number and value of the shares each person holds
  • The details for your PSC register, every person with significant control who owns more than 25%
  • A SIC code that describes your trade for Companies House and HMRC
  • A registered office address, which appears on the public register (you can use ours to keep your home address private)
  • Your memorandum and articles of association, which we prepare for you
  • Verified identity for each director and PSC, now a legal requirement to incorporate

Have most of this and you are ready. Miss a piece and we fill the gap, from choosing the right SIC code to providing a registered office.

See also: registered office address

Limited company vs sole trader: which should you choose?

The most common question before you register a limited company is whether you need one at all, or whether staying a sole trader is simpler. It comes down to profit, risk and how you want to be taxed.

What about an LLP?

A limited liability partnership suits professional partners, such as solicitors, designers or consultants, who want limited liability but prefer to be taxed as individuals rather than through a company. We cover the LLP incorporation, the members agreement basics and the HMRC registrations, so the structure matches how you actually share profit.

Sole traderLimited company
Legal statusYou and the business are the sameA separate legal entity from you
LiabilityYour personal assets are at riskLimited to what you put into the company
TaxIncome Tax on all profitCorporation Tax, then salary and dividends
PrivacyYour details stay privateDirectors and PSCs appear on the public register
AdminOne Self Assessment returnAnnual accounts, a confirmation statement and a CT600

See also: Corporation Tax returns

Why use an accountant to form your company, not a cheap formation agent?

A budget formation agent files your application and leaves you to work out the rest. The form is the easy part. Getting your share structure, your salary and dividend mix, and your tax registrations right from day one is what actually saves you money, and it is what costs the most to unpick later.

When you choose our company formation services, a qualified, named accountant sets it up the way it should run. We structure your shares for the founders and any future investors or EMI option pool, register you for the right taxes, and plan a tax-efficient salary and dividend split before you draw a penny. Get this wrong and a single share class or a missed election can mean legal fees, stamp duty, or an unexpected tax bill a few months in.

You also get someone who is still there after incorporation. We are CIMA-regulated and reply to every query within 72 hours, so you are never left wondering whether a filing has been done.

See also: registered office servicesVAT registration

How much does it cost and how long does it take to set up a limited company?

Forming a limited company has two costs: the Companies House fee and your accountant's fee. We keep both clear, with no surprises and no hidden extras.

Companies House charges £100 to register a company digitally, which is the route we use, and applications are usually approved within 24 hours. The paper postal route costs £124 and takes 8 to 10 working days, which is why we always file online for you. On top of that, our company formation services are a fixed fee on a rolling monthly basis you can cancel anytime, backed by a 30-day money-back guarantee.

Company formation packages that fit your stage

Our company formation packages start at a fixed £129, £250 or £499, so you pay for the help you actually need. A sole director testing an idea does not need the same setup as a funded startup with an option pool, and our pricing reflects that. Every package includes your incorporation, identity verification, SIC codes and HMRC registration, with share planning and bookkeeping added as you grow.

RouteCostHow long
Digital filing (we do this for you)£100 Companies House feeUsually within 24 hours
Paper / postal£124 Companies House fee8 to 10 working days
Our formation + tax setupFixed at £129, £250 or £499Set up the same week

Registering for Corporation Tax, VAT and PAYE

Setting up the company is only half the job. A new limited company also has to register with HMRC, and the timing matters:

  • Corporation Tax: you must register within three months of starting to trade. We do this at incorporation, so it is already handled.
  • VAT: registration is compulsory once your turnover passes £90,000, and you can deregister below £88,000. Many new companies register voluntarily to reclaim VAT, and we advise on whether that helps you.
  • PAYE: if you will pay yourself a salary or employ anyone, you need a PAYE scheme, which we set up alongside the company.

Getting these registrations right at the start keeps your first year clean.

See also: VAT registration

Why it pays off

What do you get with our company formation services?

  • Set up to save tax, not just registered

    Anyone can file an IN01. We structure shares, salary and dividends so your company is tax-efficient from incorporation, avoiding costly restructuring later.

  • qualified, named accountant

    You get one named, qualified accountant who knows your company, not a call centre. We reply to every query within 72 hours.

  • Fixed, transparent pricing

    Clear fixed fees of £129, £250 or £499 with no hidden extras, on a rolling monthly basis you can cancel anytime, backed by a 30-day money-back guarantee.

  • Compliance handled correctly first time

    We get your identity verification, PSC register, SIC codes and HMRC registrations right at the start, so your first Confirmation Statement and accounts are straightforward.

  • Works with your software

    We support Xero, QuickBooks, FreeAgent and Sage, setting up your bookkeeping from day one so your figures are ready for filing.

How Zmartly sets up and runs your limited company

We are an accountancy practice first and formation specialists second, which is exactly the point. Anyone can press submit on a form. We make sure the company underneath it is built to save you tax and stay compliant. You work with one named, qualified accountant, not a call centre, and we are CIMA-regulated and a Xero Partner.

We set up companies for founders, contractors, ecommerce and Amazon sellers, landlords and non-UK residents, so we have met the structure questions your situation raises before. That experience is what turns a basic incorporation into a company that is ready to trade, raise money and pay you efficiently.

The quiet work a cheap filing skips

Setting up a limited company properly means the right share classes for an EMI option pool, the correct SIC codes, a clean PSC register, and the HMRC registrations that have to follow. Get these right at the start and your first confirmation statement and accounts are simple.

Setting up your business bank account

A new company needs a business bank account before it can trade properly, so we build that into your setup. We introduce you to UK banks and digital providers such as Tide, Wise and Revolut Business, where accounts often open within days, as well as the high-street banks if you prefer a branch. For overseas founders the digital providers are usually the fastest route, since many high-street banks ask a director to visit in person.

See also: company secretarial support

What happens after you set up a limited company?

Your company exists, but the clock starts the moment it does. New directors are often caught out by deadlines nobody warned them about, and Companies House penalties are automatic, with no appeal for being busy. Here is what we handle so nothing slips through:

  • Corporation Tax registration: you must tell HMRC within 3 months of starting to trade. We register you at formation, so it is already done.
  • Your first confirmation statement: due within 12 months of incorporation, then every year. Miss it and your company can be struck off the register.
  • Your first annual accounts: due 21 months after incorporation. Late filing penalties start at £150 and rise to £1,500, and double if you are late two years running.
  • Everything ongoing: VAT and PAYE if you need them, bookkeeping in Xero, QuickBooks, FreeAgent or Sage, and your year-end accounts and Corporation Tax return.

Your named accountant tracks every date and prepares every filing, so your first year runs without a single missed deadline.

See also: ongoing bookkeeping

How we deliver

Four steps from first call to filed.

  • 01

    Discovery

    Understanding your business needs.

  • 02

    Solution Design

    Crafting your custom accounting strategy.

  • 03

    Onboarding

    Quick and easy integration.

  • 04

    Regular Rhythm

    Consistent monitoring and reporting.

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Common questions

Frequently asked questions.

It depends on profit level, liability exposure, and growth plans. Below around £30,000 net profit the tax advantage of a Limited Company is marginal, and sole trader simplicity often wins. Above that threshold, and any time you take on staff, premises, or external investment, Limited becomes the right answer. LLPs suit professional partnerships (legal, design, consulting) where partners want flow-through tax treatment with limited liability.

Standard same-day incorporation with Companies House if the application is filed before 3pm on a working day - the certificate of incorporation usually comes back within hours, and a digital application is normally approved within 24 hours. HMRC registrations for Corporation Tax follow automatically; PAYE and VAT registration take 5-15 working days depending on HMRC backlog. Most clients are trading from a UK company within 24-48 hours of engagement.

There are two costs. Companies House charges £100 to register a company digitally (or £124 by post, which is slower), and this changed from 1 February 2026. On top of that is your accountant's fee. Our formation packages are a fixed £129, £250 or £499 depending on the setup you need, on a rolling monthly basis you can cancel anytime, backed by a 30-day money-back guarantee. That covers the incorporation, identity verification, SIC codes and HMRC registration, not just filing the form.

Yes. You can register directly with Companies House for £100, and the form itself is not hard to complete. What the form does not do is set the company up to save you tax. The parts that cost the most to unpick later, your share structure, your salary and dividend mix, and the Corporation Tax, PAYE and VAT registrations, are the parts a cheap filing skips. Since 18 November 2025 you must also verify your identity to incorporate. We handle all of it and structure the company properly from day one.

Yes - there is no residency requirement for UK directors or shareholders. You will need a UK registered office (we provide one), and most UK banks require at least one director to visit in person, though digital alternatives like Wise, Tide, and Revolut Business open accounts remotely. EORI registration for import/export is also handled in the same setup.

Restructuring share classes later triggers legal fees, stamp duty, and sometimes income tax charges on founders. If you might raise SEIS or EIS, take on investors, or grant employee options through an EMI scheme, we structure the share classes (ordinary, growth shares, option pool) at formation so you do not pay to unpick a single share class six months in.

Companies House incorporation, certificate of incorporation, memorandum and articles of association, share certificates, statutory registers, HMRC Corporation Tax registration, optional PAYE and VAT registration, a registered office address for the first year, and bank account introductions. PAYE setup, first-year accounting, and ongoing compliance work are quoted separately.

Less than you might expect. We need your proposed company name, a registered office address (or you can use ours to keep your home address off the public register), the names, dates of birth and addresses of your directors and shareholders, how you want to split the shares, and a SIC code describing your trade, which we help you choose. Since 18 November 2025, every director and person with significant control must also verify their identity, and we guide you through that as your Authorised Corporate Service Provider.

Once Companies House approves your application, usually within 24 hours, you receive your certificate of incorporation showing your company number and incorporation date, your memorandum and articles of association, your share certificates and your statutory registers. We also confirm your Corporation Tax registration and pass on your Unique Taxpayer Reference (UTR) as soon as HMRC issues it.

As soon as your certificate of incorporation comes through, usually within 24 hours of us filing. You can open a business bank account, sign contracts and invoice straight away. We recommend setting up your bookkeeping first so your figures are right from the very first transaction, and remember you must tell HMRC within 3 months of starting to trade.

Yes. Our office is in West London, and we work with founders across the UK. Incorporation is done online, so wherever you are, your named accountant handles Companies House and HMRC for you remotely. You get the same service and the same person, in London or anywhere else in the country.

Yes. Many new companies register for VAT at the same time as incorporation, either because they expect to pass the £90,000 threshold or because voluntary registration lets them reclaim VAT. We handle both in one go, along with Corporation Tax and PAYE if you need it, so every registration is done before you start trading.

Word of mouth

What clients actually say.

  1. I’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
    Google reviewer land4 success (chill feel good)
    land4 success (chill feel good)Verified Google review · 6 months ago
  2. I’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
    Google reviewer Heena
    HeenaVerified Google review · 4 months ago
  3. I started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
    Google reviewer Jorge Carballo Gomez
    Jorge Carballo GomezVerified Google review · 5 months ago
  4. I've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
    Google reviewer Sean Barrington
    Sean BarringtonVerified Google review · 6 months ago
  5. Its not easy to find accountants who understand ecommerce especially Amazon and these guys know Amazon very well. Always helps us with advice if they spot something we incorrectly. Super easy to speak with someone if you have…
    Google reviewer Darius Jaselskis
    Darius JaselskisVerified Google review · 6 months ago
  6. I’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
    Google reviewer land4 success (chill feel good)
    land4 success (chill feel good)Verified Google review · 6 months ago
  7. I’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
    Google reviewer Heena
    HeenaVerified Google review · 4 months ago
  8. I started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
    Google reviewer Jorge Carballo Gomez
    Jorge Carballo GomezVerified Google review · 5 months ago
  9. I've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
    Google reviewer Sean Barrington
    Sean BarringtonVerified Google review · 6 months ago
  10. Its not easy to find accountants who understand ecommerce especially Amazon and these guys know Amazon very well. Always helps us with advice if they spot something we incorrectly. Super easy to speak with someone if you have…
    Google reviewer Darius Jaselskis
    Darius JaselskisVerified Google review · 6 months ago
4.9
Google · based on 63 reviews
Zmartly Ltd12 Hammersmith Grove, London W6 7AP020 8175 5145[email protected]
Free · 30 minutes · No obligation

Stop overpaying tax. Start filing in 5 days.

Thirty minutes with a qualified accountant. Most owners uncover £1,000-£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.

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