Starting a business in London should feel empowering, not overwhelming. We help you choose the right company structure, register with Companies House and HMRC, and get your company ready to trade.
By international standards, the United Kingdom is a particularly favourable country for entrepreneurs, no matter if resident or non-resident. So well done in deciding to found a company! And while you are at this, you might also want to know what else you can do for maximum tax efficiency and a life free of HMRC stress from day one.
But what could go wrong in the first place? One of the most common mistakes we see is choosing the wrong company structure at the time of registration. For example, many new business owners in London default to forming a private limited company without fully understanding the implications. They later discover that their choice comes with director responsibilities, PAYE obligations, and restrictions around how profits can be withdrawn. In many cases, a sole trader structure would have offered more flexibility, fewer compliance burdens, and easier access to funds at least in the early stages of business.
This is why our company registration service exists: we do not just file forms, but help you avoid blind spots so that your business starts strong, stable, and set up to grow.
There are several ways to structure a business in the UK – from sole trader to limited company (Ltd), partnership, or LLP. For most first-time founders looking to limit liability and appear professional, a private limited company is the go-to model. But the steps apply in modified form to others too.
Here is what the process typically looks like:
These steps give you a first idea of what awaits you when registering your company in the UK. And while they might seem like major obstacles to you, we at BH1 Accounting like to think about them as chances to optimise your business.
With our company registration services, we help you figure out the details such as the ideal company structure, outlining which taxes will apply to you (and which ones will not!), setting you up for relevant taxes only, and more. In fact, you can leave it all to us: As experienced London chartered accountants for small- and medium-sized businesses, taking pressure off entrepreneurs who just started their journey is our specialty.
It depends on how much risk you prefer taking, how much you expect to earn, and whether you want to reinvest profits or extract income. Sole trader setups are simpler but offer no liability protection. Limited companies give you credibility, tax planning options, and legal separation, but come with more administrative tasks. If you are unsure, reach out for a free initial meeting with us. Let us know what you would like to do with your business in detail and we will find the ideal company structure for you.
Once Companies House has your details, a standard limited company can be registered with Companies House in 24 to 48 hours. Some cases (e.g. sensitive names, overseas shareholders) may take longer. But most of our clients are fully registered, have a company number, and are tax-registered within 2 to 3 business days. However, there is also a same-day-service for those needing to register a limited company quickly (currently £78).
Obviously, the key is to have figured out all the steps above correctly beforehand so that there are no hold-ups once you are ready to go.
This happens often. Common issues include incorrect share allocations or using a personal home address on public record, for example. These can lead to compliance issues and admin costs.
We can correct these errors when clients come to us after registering. So if it happened, let us know so that we can iron out your forms. Needless to say though, it is easier (and cheaper) to get it right from the start, which is what our company registration services are for.
You register your company first and then open a business bank account using your company number and incorporation documents. Some banks delay setups if your Companies House data is incomplete or has errors. As London chartered accountants, we help ensure the details are lined up so that you can open an account without friction.
Yes. UK company law allows non-residents and non-citizens to register companies here. However, a UK registered office address is a must,. We work with non-resident directors regularly and can guide you through the process including address services, compliance, and tax implications.
Technically: One director, one shareholder (can be the same person), a company name, a registered office address (you can use our registration address rental service for this), and at least one share issued (can be £1). We can take care of these steps so that your company is not just registered, but ready to operate right away.
If you operate a UK private limited company, your tax position changes significantly compared to being self-employed. The company becomes a separate legal entity, which means it pays tax on its own profits, and you are taxed separately on what you extract from the business. The main taxes that apply are:
Many directors pay themselves a combination of salary and dividends to reduce their overall tax liability. But doing this correctly requires planning, timing, and documentation. Our team advises on the most tax-efficient way to extract profit, ensures compliance with HMRC, and helps you avoid costly mistakes in dividend timing or record-keeping.
Our services include:
Naturally, we can also stay with you as chartered accountants once your business is registered. Whatever you need, just leave us a message and we can take it from there!