Company Formation Checklist UK

Choose the right company name

Your company name should be clear, professional and suitable for your business plans. Before registering, check whether the name is available, whether it is too similar to another company and whether the matching domain name is available.

You should also consider how the name will look on invoices, your website, Google Business Profile and marketing materials.

Decide who the directors are

A company must have at least one director. Directors are responsible for running the company, keeping records, filing accounts, paying taxes and acting in the company’s best interests.

Before appointing directors, make sure everyone understands their responsibilities. A director is not just a title; it carries legal and compliance duties.

Decide the shareholders and share structure

Shareholders own the company. You should decide who owns shares, how many shares are issued, what percentage each person owns, and whether different share classes are needed.

For a simple owner-managed company, a basic share structure may be enough. For multiple founders, investors or family ownership, the structure may need more thought.

Getting the share structure wrong at the start can create problems later.

Identify Persons with Significant Control

A Person with Significant Control, often called a PSC, is someone who has significant ownership or control over the company.

Companies must keep PSC information accurate. If ownership or control changes, the company records may need to be updated.

Choose the registered office address

A company needs a registered office address. This is the official company address shown on the public Companies House register.

You can use a business address, an accountant’s registered office service, or another suitable UK address. Avoid using a home address unless you are comfortable with it being publicly visible.

Choose service addresses

Directors and PSCs also need service addresses. These can be different from home addresses and are shown publicly.

Using a service address can help protect personal privacy.

Select the correct SIC codes

SIC codes describe the company’s business activity. You can usually choose more than one if the company has multiple activities.

Choose codes that accurately reflect what the business does. Incorrect SIC codes can create confusion later with banks, accountants and official records.

Set up tax registrations

After forming a company, you may need to register for Corporation Tax, VAT, PAYE, CIS or other tax schemes depending on what the company does.

Not every company needs every registration immediately. For example, PAYE may be needed if the company pays salaries, while VAT depends on turnover, business type and whether voluntary registration is useful.

Open a business bank account

A limited company should usually have its own business bank account. Company money should be kept separate from personal money.

Mixing personal and company funds makes bookkeeping harder and can create director loan account issues.

Set up bookkeeping from day one

Good bookkeeping should begin as soon as the company starts trading.

You should keep records of income, expenses, receipts, invoices, bank transactions, payroll, VAT and director payments. Cloud accounting software can make this much easier.

Common company formation mistakes

Common mistakes include:

• choosing the wrong company name
• selecting poor SIC codes
• issuing shares incorrectly
• using a home address without considering privacy
• not understanding director duties
• ignoring tax registrations
• mixing personal and company money
• failing to keep proper records

How DepoTax can help

DepoTax can support you with company formation, registered office services, service address support, SIC code guidance, Corporation Tax registration, VAT registration, PAYE registration, bookkeeping setup, payroll, annual accounts and confirmation statement filing.