How to Properly Form a Company in London?

How Do I Form a Company in London?
Forming a company in London is a straightforward process once you understand the legal steps, documentation, and responsibilities involved. To begin, you must choose a unique company name, decide whether you will operate as a private limited company (the most common structure), and prepare the necessary documents such as the Articles of Association and a valid registered office address in London. You then submit an application to Companies House—either online or through a company formation agent—with details of your directors, shareholders, share structure, and PSC (Person With Significant Control). Once incorporated, Companies House issues a Certificate of Incorporation, and only then can you open a business bank account, register for Corporation Tax within 3 months, and set up ongoing obligations such as annual accounts, Confirmation Statements, and PAYE if you plan to pay yourself as a director. Setting everything up correctly from day one avoids costly mistakes later and ensures full HMRC and Companies House compliance.

Understanding the Process of Forming a Company in London
Forming a company in London is straightforward once you understand the legal requirements, tax implications, and administrative steps involved. Over the past 20 years, I’ve guided countless entrepreneurs—ranging from first-time business owners to experienced investors—through the company formation process, often in my role as a  company formation agent in London. While London remains the UK’s strongest commercial hub, the formation rules do not differ from the rest of the UK; however, expectations around professionalism, compliance, and credibility tend to be higher in the capital. Understanding the process properly from the outset helps avoid expensive corrections later on, especially once HMRC obligations begin.

Why many entrepreneurs choose London for incorporation
London offers an ecosystem of professional services, investment networks, and global visibility that appeals to both local and international founders. Whether you’re forming a consultancy, a property business, a tech start-up, or a specialist trade company, the London address carries weight. In practice, the legal formation rules are identical to registering anywhere else in the UK, but clients and investors often view a London registered office as a signal of legitimacy. This is one reason why “How do I form a company in London?” has become such a frequently searched question.
A large proportion of my clients—including non-UK residents—choose a London registered office even if they live elsewhere. Many do so for professional image, while others choose London because they want access to accountants, solicitors, payroll providers, and corporate advisors who understand the city’s competitive business environment.
Understanding the structure you are forming
For the majority of businesses, the most appropriate structure is a  private company limited by shares (Ltd). This structure protects personal assets, provides limited liability, and is the default model for most UK start-ups. There are, however, several alternatives, each suited to different purposes:
Common company structures used in London
Structure
Best for
Key features
Limited Company (Ltd)
Most businesses
Limited liability, separate legal entity, corporation tax applies
Limited Liability Partnership (LLP)
Professional partnerships
Flexible profit sharing, partners taxed individually
Public Limited Company (PLC)
Larger companies raising capital
Minimum £50,000 share capital, stricter rules
Community Interest Company (CIC)
Social enterprises
Asset lock, regulated for community benefit
Company Limited by Guarantee
Non-profits
No shareholders, members guarantee nominal amounts

Understanding which structure fits your business model ensures compliance with Companies House and gives clarity to HMRC from day one.
Choosing a company name that complies with UK rules
Professional clients often underestimate how strict the UK naming rules are. Companies House rejects thousands of applications every year because of prohibited words, sensitive phrases, or names too similar to existing companies. In London, where competition is stronger, the issue becomes even more common.
A compliant company name must:
• Be unique and distinguishable.
• Avoid sensitive terms unless permission is obtained (e.g., “Royal”, “University”, “Chartered”).
• Not imply widespread government approval.
• End with “Limited” or “Ltd” unless you qualify for an exemption.
• Avoid offensive or misleading words.
I recall assisting a tech founder who wanted to incorporate using a name that included “Authority” because it reflected the confidence of his product. Companies House rejected it immediately. Once we revised the name and removed the sensitive term, the formation was accepted within three hours. These are the small technicalities that can cause unnecessary delays if you’re not prepared.
Selecting the registered office address in London
A company formed in London must have a registered office located anywhere within England and Wales, but many founders choose an address in the capital to signal credibility. The registered office doesn’t need to be your trading address—in fact, many entrepreneurs prefer using a professional London address to avoid listing their home publicly.
The registered office must:
• Be a physical location (not a PO Box).
• Be in the same jurisdiction as your company (England and Wales for London).
• Be accessible for official correspondence.
• Be included on the public record.
For privacy reasons, a significant number of my clients use a London virtual office or accountant’s address. This keeps home addresses off public records while maintaining compliance.
Appointing directors and shareholders correctly
A London-registered limited company needs at least one director who is at least 16 years old. Directors can also be shareholders. There is no requirement for directors to live in London—or even in the UK. The shareholders own the company, and their details must also be filed with Companies House.
Key rules that clients must understand:
• Directors are legally responsible for ensuring the company follows UK accounting, tax, and filing rules.
• Shareholder information becomes public unless structured through nominee agreements.
• PSC (Persons with Significant Control) details must be disclosed.
One client, a non-UK resident entrepreneur, believed he needed a UK-based director to form a London company. This is a common misconception. UK residency is not required; what matters is that the company complies with UK tax laws and filing obligations after formation.
Understanding share capital before registering
The UK allows enormous flexibility in setting up share capital. Most new companies issue one share of £1, allocating it entirely to the sole shareholder. However, this simplicity sometimes creates problems later when bringing in investors or splitting ownership between partners.
Key considerations include:
• Value of shares (most choose £1 nominal value).
• Number of shares issued.
• Rights attached to each share class.
• Impact on control, decision-making, and dividend distribution.
A practical real-world example:
Two business partners approached me after forming a London consultancy using a single £1 share issued to the director who completed the paperwork. They later discovered this legally made him the 100% owner. We had to restructure the share capital and transfer ownership, a process that could have been avoided with a few minutes of planning at incorporation.
Completing the Companies House registration
Once the company structure, name, address, and officers are settled, incorporation is completed through Companies House. You can do this:
• Directly through the Companies House website (£12 fee).
• Through an accountant or formation agent (£60–£150 typical).
• Using a full corporate services provider (higher fees).
The registration requires details for:
• Company name
• Registered office
• Director(s)
• Shareholder(s)
• PSCs
• SIC code (business activity)
• Share structure and statement of capital
• Articles of association
Most London companies are incorporated within 3–24 hours, depending on workload and the accuracy of the submission.
Choosing the correct SIC code
The SIC code (Standard Industrial Classification) defines your business activity. Many founders rush this choice, but it matters for:
• HMRC tax expectations
• Banking approvals
• Business insurance
• Visa applications (for overseas directors)
• Eligibility for certain grants
A fintech start-up once chose a generic “consultancy” SIC code, which delayed their business banking application because it did not match their business model. We updated the SIC code and the bank approved the application immediately.