From incorporation to your first invoice. Companies House registration, HMRC setup, Xero configuration and ongoing accounting — all handled for you.
Company formation is the process of registering a new limited company with Companies House — creating a separate legal entity that can trade, hold assets, employ people and enter contracts in its own name. Once incorporated, the company has its own legal identity, distinct from its directors and shareholders.
For startup founders, forming a limited company is usually the first step. It provides limited liability protection, tax efficiency through salary and dividends planning, credibility with clients and investors, and the ability to issue shares for fundraising or team incentives.
AccTek handles end-to-end company formation for startup founders and SaaS businesses — from Companies House registration through to HMRC setup, Xero configuration and ongoing accounting support.
We take care of every step — so you can focus on building your product and getting your first customers.
| Item | Cost | Notes |
|---|---|---|
| Companies House digital incorporation | £100 | Standard — processed within 24 hours |
| Same-day formation | £156 | Priority processing |
| Paper formation | £124 | Postal submission — takes 8–10 days |
| Annual confirmation statement | £50/year | Mandatory annual filing with Companies House |
| Registered office service | £45–100/year | If using a virtual address (optional) |
Fees increased from 1 February 2026 under the Economic Crime and Corporate Transparency Act (ECCTA), which funds enhanced identity verification and anti-fraud measures at Companies House.
Company formation is included in AccTek’s startup accounting packages. You get incorporation, HMRC registrations, Xero setup, payroll configuration and ongoing accounting support — not just a certificate and a company number. Speak to us for support.
One of the first decisions every founder faces. Here’s how they compare:
| Sole Trader | Limited Company | |
|---|---|---|
| Liability | Unlimited — personal assets at risk | Limited to share capital |
| Tax on profits | Income tax (20–45%) + Class 2/4 NIC | Corporation Tax (19–25%) |
| How you pay yourself | Drawings from the business | Salary + dividends (tax-efficient) |
| Credibility | Less formal | Registered company — stronger with clients and investors |
| Raising investment | Cannot issue shares | Issue shares, SEIS/EIS eligible |
| R&D tax relief | Not available | Available — potentially worth thousands |
| Admin | Simpler — Self Assessment only | Annual accounts, CT return, confirmation statement, payroll |
| Best for | Freelancers, low-risk, low-profit | Startups, founders, growth businesses |
For most startup founders — especially those building SaaS products, agencies or tech businesses — a limited company is the better choice. The tax savings, liability protection and ability to raise investment outweigh the additional admin, which AccTek handles for you.
Your share structure matters more than most founders realise — especially if you plan to raise investment, bring on co-founders, or offer equity to employees.
Start simple: 100 ordinary shares at £1 nominal value, all held by you. This gives you 100% ownership and full voting rights. You can restructure later if needed.
Split shares according to your agreed ownership. Document everything in a shareholders’ agreement — including vesting schedules, good leaver/bad leaver provisions, and decision-making rights. Don’t skip this even if you trust each other completely.
Consider creating multiple share classes from the start (ordinary shares for founders, a separate class for investors). This makes future funding rounds cleaner. AccTek can advise on structures that work with SEIS/EIS eligibility and EMI share option schemes.
Incorporation is just the beginning. Here’s what needs to happen in the first 30 days:
Every item on this checklist is included in AccTek’s startup packages. We don’t just form your company — we build the financial infrastructure you need from day one.
The Companies House digital incorporation fee is £100 (from February 2026). Same-day formation costs £156. AccTek includes company formation as part of startup accounting packages — covering Companies House registration, HMRC setup, Xero configuration and ongoing support.
Standard digital formation through Companies House typically takes 24 hours. Same-day incorporation is available for £156. AccTek can have your company fully operational — with HMRC registrations, Xero and payroll configured — within a few days of incorporation.
At least one director (aged 16+), at least one shareholder, a UK registered office address, a unique company name, SIC codes describing your business activity, identity verification through GOV.UK One Login, and articles of association.
No. Under the Companies Act 2006, directors and shareholders do not need to be UK residents. However, you still need a UK registered office address and must complete identity verification. Non-UK residents should consider tax residency implications.
Most startups benefit from incorporating as a limited company. The advantages include limited liability, tax efficiency through salary and dividends, credibility with clients and investors, access to R&D tax relief, and the ability to issue shares for fundraising or team incentives.
Under the ECCTA, all new directors and persons of significant control must verify their identity through GOV.UK One Login or an Authorised Corporate Service Provider (ACSP). This is mandatory from 2025 and applies to all new incorporations.
Register for Corporation Tax with HMRC within 3 months, set up a business bank account, configure cloud accounting (Xero), register for PAYE if paying a salary, consider VAT registration, and begin maintaining proper financial records. AccTek handles all of this.
Most startups begin with ordinary shares at £1 nominal value. If you plan to raise investment, consider creating multiple share classes from the start. For co-founders, agree vesting schedules and document them in a shareholders’ agreement.
Yes, in certain cases. VAT on goods purchased up to 4 years before VAT registration and services up to 6 months before registration can be reclaimed, provided the goods/services were for business use and you have valid VAT invoices.
Yes. AccTek handles end-to-end company formation — Companies House registration, HMRC registrations (Corporation Tax, PAYE), Xero setup, bank account guidance, share structure advice, and ongoing accounting support. Formation is included in startup packages.
AccTek handles incorporation, HMRC, Xero and ongoing accounting. One partner from day one.
This page is for general information only. Companies House fees and requirements are subject to change. Individual circumstances may vary — contact AccTek for personalised advice. Content by Godwin Pinto, ACA (ICAEW).
