Whether you’re starting a business from scratch or thinking of making the transition from sole trader to limited company, you’re probably wondering how long it takes to make things official. 

The good news is that setting up a limited company can be a surprisingly quick process, especially if you’re prepared and know what to expect.

In this guide, we’ll walk you through the timeline for setting up a limited company and cover the fastest way to get your company officially registered with Companies House. Let’s get into it: 

Is setting up a limited company the right choice for you?

Before you start the setup process, it’s important to make sure a limited company is the best structure for your business. Unlike a sole trader setup, a limited company:

• Offers limited liability, meaning your personal assets are separate from your business’s finances.
• May offer tax efficiency, especially if your profits exceed certain thresholds.
• Carries more administrative responsibilities, like filing annual accounts and Corporation Tax returns.

To decide whether setting up a limited company might be worth the wait, you can read our full guide to whether a limited company is the right fit for you and read a full breakdown of the advantages here.  If you’re confident that a limited company is right for you, the next step is to get started on the registration process.

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‍How long does setting up a limited company take?

‍In short, registering a limited company in the UK typically takes 24 to 48 hours when done online through the Companies House Web Incorporation Service. The process can be completed in as little as 5 to 10 minutes, with registration usually finalised within one business day.

Still, it's important to note that while the registration process is quick, you'll need to prepare necessary information beforehand, such as your company name, registered office address, directors' details and shareholder information. This information can take several days or weeks to decide on and pull together. 

Here are the main things you’ll need to take the time to prepare beforehand:

‍1. Deciding on a company name (1-2 days)

‍Choosing the perfect name for your company might take some thought. You’ll need to:

• Check the name you’re interested in isn’t already in use. You can check this using our free Crunch limited company name availability checker.
• Avoid restricted words or phrases that require special permission (such as "Royal" or "Chartered").
• Comply with naming rules, such as including “Limited” or “Ltd.”

If you’ve already got a name in mind and it’s available, this step can be completed in just a few hours.

‍2. Preparing key information (1-2 days)

‍To register your limited company, you’ll need to pull together the following information:

• Registered office address: This must be a UK address where official correspondence will be sent.
• Company email address: This is a relatively new requirement, but you must have a functioning company email account set up. 
• Director details: Names, addresses and other personal information for at least one company director.
• Shareholder details: Information about anyone holding shares in the company, including how many shares each person owns.
• Articles of association: These are the rules for how your company will operate. Companies House provides a standard template, or you can create your own.

If you have all this information ready, this step is quick. However, if you’re unsure about roles or need to write custom Articles of Association, it could take a little longer.

‍3. Registering with Companies House (same day to 10 days)

‍The actual registration process is usually the quickest part, and you can read our simple guide to setting up a limited company here. You can register your company:

• Online through Companies House: If you use the Companies House Web Incorporation Service, your application is usually processed within 24 hours.
• Through a company formation agent: Agents often provide a same-day service for an additional fee.
• By post: If you prefer to register by post, it takes approximately 8-10 working days, not including delivery time.‍

‍Factors impacting how long it takes to set up a limited company

‍There are a few factors which can affect how long it takes to set up a limited company, such as:

• Your application method: As we just touched on, registering online is much faster than registering by post.
• The time you register: If you register before noon on a working day, same-day registration may be possible, but if you wait until the afternoon or a Friday, your application will likely be processed the next working day.
• Accuracy of information: Errors or missing details can cause delays. 
• The availability of your company name: If your chosen name is too similar to an existing company or breaches naming rules, you’ll need to go back to the drawing board. Remember to use our free limited company name availability checker to make sure this problem doesn’t affect you. 
• Companies House workload: Processing times may vary during peak periods. For urgent registrations, some services offer expedited options, such as a same-day service for an additional fee, or the guaranteed same-day service offered by some company formation agents. 

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Additional steps that may affect your timeline

‍Once your company is officially registered, there are a few more steps to complete before you can start trading. These steps may add to your overall timeline:

‍1. Setting up a business bank account (1-2 Weeks)

‍Most banks require limited companies to open a separate business account. The time it takes to set up an account depends on the bank, but it’s typically within 7-14 days after submitting the necessary documents. You can read our full guide to setting up a business bank account here. To speed up the process, have your company registration documents, proof of ID and proof of address ready.

‍2. Registering for Corporation Tax (within 3 months of trading)

‍You must inform HMRC that your company is active and register for Corporation Tax within 3 months of starting trading. This can usually be done online and only takes a few minutes.

‍3. VAT Registration (if applicable) (immediate to 2 weeks)

‍If your turnover is expected to exceed the VAT threshold (£95,000 as of January 2025), you’ll need to register for VAT. The online registration process is fairly straightforward (see our guide to registering for VAT here), but approval can take up to 2 weeks.

‍Can you start trading before your company is registered?

‍No. You must wait until you’ve received your certificate of incorporation from Companies House before starting to trade as a limited company.

‍Tips for speeding up the registration process

‍As we covered earlier, it’s much faster to register your business online than it is to register by post. 

It also helps if you register in the morning at the start of the week, and make sure you have all of your company director and shareholder details to hand. 

Working with a professional can also make the process smoother and faster, especially if you’re unfamiliar with company formation rules, and it doesn’t have to break the bank. At Crunch, we offer a straightforward and affordable £50 company formation service. Simply choose your company name and check its availability using our search tool, then head to our Crunch Formations site to start the easy online application process. 

‍Ready to set up your limited company?

‍So, how long does it take to set up a limited company in the UK? If you’re well-prepared and use the online registration service, you could have your business up and running in as little as 24 hours. However, taking into account other steps—such as opening a business bank account and registering for Corporation Tax—the entire process could take anywhere from a few days to a couple of weeks. Every limited company is different, and so are their registration timelines. 

The key to a smooth and speedy setup is preparation, and getting professional advice and support if you feel you need it. Starting a limited company is an exciting milestone, and with the right approach, you’ll be ready to launch your business in no time. Happy registration day!