How Long Does It Take to Set Up a Limited Company?

Starting your own business can be one of the most rewarding experiences, and it often begins with a simple step: setting up a limited company.

If you’re wondering how long this process takes, you’re not alone. The time frame can vary depending on several factors, but with the right approach, you can complete it quite quickly and without any hassle.

In this guide, we’ll walk you through the process, offer tips to speed things up, and help you avoid common pitfalls, so keep reading if you're looking to set up a company in the UK.

Fastest Way to Register Your Limited Company

Registering a limited company can be done in just a few hours, especially if you use an online service like Companies Made Simple. Online services simplify the process and ensure that your application is completed correctly the first time. Which saves you time and stress!

Here are the steps you need to follow to form your company quickly:

Choosing a Company Name

The first step in forming a limited company is selecting a unique name. This can be one of the quicker steps if you have a name in mind. However, you must ensure that the name is not already in use and meets the legal requirements. Online tools, such as our company name checker, are available to check the availability of your desired company name instantly.

This task can take anything from a few minutes to an hour, depending on whether you have a name ready to go, which is free to use.

Preparing Necessary Documents

Next, you’ll need to prepare essential documents, including the Memorandum of Association and Articles of Association. These documents outline the structure and purpose of your company.

• Memorandum of Association: This document outlines the founding members’ intent to form the company. 
• Articles of Association: These are the rules for running the company, agreed upon by the shareholders or guarantors.

If you form a company with us, you can use our standard M&A templates which suit most small businesses.

Prepping your M&As can take anything from a few hours to a day, depending on whether you use templates or create these documents from scratch. With Companies MadeSimple, this task can be done in no time!

• What Documents Do I Need To Form a Limited Company?

Registering with Companies House

Once your documents are ready, the next step is to register with Companies House. If you form with us, this means filling in your full details and uploading a valid ID and proof of address.

Online registration is the quickest method, often completed within 48 hours, depending on your ID and personal details.

Remember mistakes cost time! So make sure you have followed the step-by-step instructions to form your company on time and quickly.

Providing Director and Shareholder Information

You’ll need to submit details of the company’s directors and shareholders, including their full names, addresses, and other personal information. Ensuring accuracy at this stage can prevent delays.

Don’t forget: your director’s service address will be public. If you are running your business from home, you may want to consider using a Service Address Service to protect your home address and privacy.

With Companies MadeSimple, your director’s service address is included in our Registered Office Address service. This means you won’t pay twice to use the same address and your address details are protected with just one package!

This can take anything from 10-30 minutes, depending on whether you have the details on hand and ready to go.

Filing a Confirmation Statement

After registering, you must file a confirmation statement annually. This step doesn’t affect the initial registration time, but it’s essential to maintain the company’s active status.

You’ll have to file your confirmation statement every year, or every time your company details change. You can opt for a service to help you file your confirmation statement and minimise mistakes. 

Doing the Application Right the First Time

Speed is crucial, but accuracy is equally important. Here are some common mistakes people make during the application process and tips on how to avoid them:

Incorrect or Incomplete Information

Errors in the information provided, such as incorrect addresses or misspelt names, can lead to delays. Double-check all details before submission.

Choosing an Unavailable Company Name

If the name you choose is already in use or too similar to an existing company, your application will be rejected. Use our name availability checker to avoid this issue.

Errors in Director and Shareholder Details

Incorrect details about directors or shareholders can cause your application to be rejected. Ensure all information is accurate and up to date and you have a service address ready to go- especially if you're hoping to use a Service Address Service.

Incorrect Share Allocations

Incorrectly allocating shares or failing to document share structures properly can delay the process. It’s important to get this right from the start. By default, we recommend one 1 share per shareholder and keeping one share worth £1. Unless you have advice from a professional stating something else.

Incomplete or Incorrect Address Information

Providing incorrect or incomplete address information can also result in delays. Ensure that the registered office address and directors’ residential addresses are accurate.

By paying attention to these details, you can avoid common pitfalls and ensure your application is processed smoothly.

Remember: your registered office address will be listed on the Companies House public register. So if you intend to use your home address this can open you up to a huge number of privacy concerns. You can opt for a Registered Office Service to protect your privacy and your home address.

• Using Your Home Address As Your Registered Office? Here’s Why It’s a Bad Idea.

Application Delays or Rejections

Even with the best intentions, applications can sometimes be delayed or rejected. Here are some common reasons why this happens:

Incomplete Information

Missing critical details, such as director information or your registered office address, is a common reason for delays. Make sure that all required information is included in your application.

Errors in the Application

Typographical errors, incorrect spellings, or wrong information can lead to rejections. Carefully review your application before submission.

Issues with the Company Name

Choosing a name that is already in use or doesn’t comply with naming regulations can result in rejection. Make sure to verify the availability and compliance of your chosen name.

• What Makes A Good Company Name?

Inaccurate Address Information

Providing an incorrect or incomplete registered office address can delay your application. Ensure all address information is accurate.

• Registered Office, Service Address and Residential Address Explained.

Share Allocation Mistakes

Misallocating shares among shareholders or failing to document the share structure properly can cause delays. Double-check your share allocations before submitting the application.

If your application is rejected, you will receive a notification detailing the reason. To rectify the issue, review the rejection reason, correct the errors, and resubmit your application. Be aware that this can lead to additional costs and time delays, potentially pushing back your business start date.

Summary

Setting up a limited company doesn’t have to be a lengthy process. By being thorough in your preparation and understanding the registration process, you can complete it efficiently and with minimal delays. Remember, using a professional service like Companies MadeSimple can further expedite the process, ensuring that your application is accurate and submitted correctly the first time. Saving you crucial time and effort!

Starting your business is an exciting adventure—by knowing what to expect, you can make the process of setting up your limited company smooth and swift.