Start a Company

1. Choose a Company Name That Complies with UK Law

The company name you choose must:

• Be unique and not the same (or too similar) to any existing UK company
• Avoid restricted or sensitive words like “Royal” or “Bank”
• Not contain offensive or misleading language
• Not infringe on trademarks

You can check for name availability on the Companies House website—or let Dragonfly Associates assist with availability searches and guidance as part of your formation package.

2. Appoint at Least One Director

By law, every UK limited company must have at least one director who is:

• A natural person (not just a company)
• At least 16 years old
• Not currently disqualified from acting as a director
• Not bankrupt (unless with court permission)

Directors are legally responsible for ensuring the company complies with accounting, tax, and reporting requirements. Dragonfly Associates provides director briefings and support on responsibilities where applicable.

3. Provide a Registered Office Address

Your registered office:

• Must be a physical location in the UK
• Will appear on the public record
• Is where Companies House and HMRC send legal notices

If privacy is a concern, you can use a third-party address provider. Dragonfly Associates offers registered office and service address options, subject to agreement, to protect your residential address.

4. Define Shareholders and Share Structure

You must have:

• At least one shareholder (can be the same person as the director)
• An initial share structure (number of shares, value, and allocation)
• A record of ownership (Persons of Significant Control register)

The initial shareholder(s) and share capital are documented in the company’s incorporation forms. Dragonfly Associates assists in defining and documenting these details during setup.

5. Create a Memorandum and Articles of Association

These documents form your company’s constitutional foundation. They include:

• The Memorandum: a statement from the initial shareholders agreeing to form the company
• The Articles of Association: rules for running the company (e.g., decision-making, issuing shares)

Companies House provides model articles, but these can be customised. Dragonfly Associates provides standard or tailored documents, depending on the scope of service agreed upon.

6. Assign a SIC Code

You are required to choose a Standard Industrial Classification (SIC) code that best describes your business activity. You can select more than one if needed.

It’s important to select the correct code for statistical and regulatory purposes. We advise clients on code selection during the company formation process, where this support is included in their plan.

7. File the Incorporation with Companies House

You must submit Form IN01 electronically or by post. It includes:

• Company name
• Registered address
• Director and shareholder details
• Share structure
• SIC code

Dragonfly Associates files electronic incorporations for most clients, allowing registration to be completed in as little as 3–6 hours. This service is included in our formation packages, subject to agreement.

8. Register for Corporation Tax

Every new company must register for Corporation Tax within 3 months of beginning trading (not necessarily from incorporation). You’ll need:

• Your Unique Taxpayer Reference (UTR)
• Your SIC code
• Contact details of the company

Dragonfly Associates offers Corporation Tax registration services as part of its accounting and compliance support, depending on your selected plan.

9. Maintain Statutory Registers

From the date of incorporation, a company must keep updated records of:

• Directors
• Shareholders
• Persons of Significant Control (PSC)
• Share allotments and transfers

These must be available for inspection upon request. We assist clients with maintaining these registers where agreed in their compliance package.

Why Legal Accuracy Matters

Incorporation is not just paperwork—it’s a legal milestone. Errors or omissions can lead to:

• Fines or penalties from Companies House
• Delays in opening bank accounts
• Tax filing issues
• Liability concerns for directors

Dragonfly Associates ensures your incorporation is complete, compliant, and supported by experienced professionals—based on the scope and terms of our service agreement.

Frequently Asked Questions

Final Thoughts

Meeting the legal requirements of UK company formation isn’t difficult—but getting it right is critical. It affects your credibility, compliance, and ability to scale.

At Dragonfly Associates, we simplify the process by providing expert-led, contract-backed company formation services that ensure everything is in place from day one.

To learn more or get a quote for your incorporation, contact our team today.

1. World-Class Business Infrastructure

The UK combines modern infrastructure with centuries of commercial history. Its institutions—from banking to regulatory bodies—are mature, transparent, and designed to support both startups and global enterprises.

• Clear legal protections for businesses and investors
• International credibility as a business destination
• Home to London, one of the world’s top financial centres

This level of maturity and access makes it ideal for both local entrepreneurs and foreign founders looking to establish a European footprint.

2. Fast and Simple Company Registration

The UK makes it easy to launch a business:

• You can register a limited company in under 24 hours
• There is no requirement for UK residency
• A single individual can be both director and shareholder
• Filing requirements and costs are relatively low

Dragonfly Associates facilitates same-day company formation for clients, including preparation of key documents and submission to Companies House, depending on the chosen package.

3. Access to a Strong Talent Pool

The UK is home to a highly educated, multilingual workforce. Whether you’re hiring locally or remotely, you’ll find talent across all sectors, particularly in:

• Technology and digital services
• Finance and legal professions
• Logistics and manufacturing
• Marketing, design, and creative industries

Employment support services, such as payroll setup and employer registration, are available from Dragonfly Associates where applicable.

4. Attractive for International Founders

One of the UK’s standout features is that you don’t need to live in the country to open a company. Many non-resident directors use the UK as a base for global operations.

• No requirement for local shareholders
• Ability to operate remotely using UK addresses and virtual mail handling
• Global trust in UK corporate structures
• Access to UK banking (subject to bank approval)

Dragonfly Associates offers Non-Resident Packages designed for international clients, including business address services, company formation, and optional mail forwarding—available by contractual arrangement.

5. Competitive Tax Environment

The UK offers a straightforward, globally competitive tax regime:

• Corporation Tax is among the lowest in the G7
• VAT is well understood and built into business systems
• No capital requirements to start a private limited company

There are a variety of tax reliefs for small businesses and startups, including Research & Development (R&D) credits and reliefs for early-stage investment. We assist clients in understanding their tax obligations and, where agreed, can help with tax registrations, accounting, and compliance services.

6. Trusted and Recognised Business Presence

Having a UK company lends credibility. Clients, investors, and partners around the world view UK businesses as professional, compliant, and reliable.

This is especially useful for:

• Agencies and consultants selling internationally
• Tech firms seeking funding
• E-commerce sellers expanding into global markets

Even when operating remotely, you can project a local presence using a registered UK business address—available through Dragonfly Associates, depending on your selected service tier.

7. A Hub for Expansion

The UK is a springboard to wider markets. As a member of key global trade networks and with a highly connected logistics ecosystem, it’s ideal for businesses that plan to expand into:

• The EU and Western Europe
• The United States
• Asia-Pacific markets

With English as the official language, global entrepreneurs find it easier to work with UK systems and professionals. Legal documents, contracts, and financial tools are all in English—no translation necessary.

How Dragonfly Associates Can Support You

Whether you’re UK-based or an international founder, Dragonfly Associates provides:

• Company formation services for residents and non-residents
• Registered office and service address in central London
• Accounting, bookkeeping, and tax registration
• Startup consulting and structuring advice

All services are delivered by our internal team, and availability depends on your selected plan or service agreement.

Frequently Asked Questions

Final Thoughts

The UK is one of the most flexible, secure, and well-connected countries in which to start a business. Its business culture, credibility, and efficiency make it an ideal launchpad for entrepreneurs around the world.

Dragonfly Associates is here to help make that possible—through formation, advisory, and compliance services, all delivered with clarity and care.

To learn more or begin the registration process, contact our team today.

Step 1: Shape Your Business Idea and Plan

Every successful company starts with a clear idea and a plan to bring it to life. Before registering anything, take time to define:

• What your business will offer
• Who your customers are
• Your pricing and delivery model
• Startup costs and projected revenues
• The level of funding (if any) you may need

If you’re unsure how to translate your idea into a workable model, Dragonfly Associates offers startup consultations…

Step 2: Choose a Legal Structure

Choosing the right structure impacts your taxes, liability, and regulatory responsibilities. In the UK, the most common options are:

• Sole Trader — simple, fast to set up…
• Limited Company (Ltd) — a separate legal entity…
• LLP — ideal for shared professional services
• Company Limited by Guarantee — used for charities

Most entrepreneurs choose a private limited company…

Step 3: Register Your Business

Sole Trader

You must register for Self Assessment with HMRC…

Limited Company

You’ll need to:

• Choose a company name (must be unique)
• Provide a registered office address
• Appoint at least one director and shareholder
• Issue shares and define a company structure
• Select a SIC code
• Submit to Companies House

Dragonfly Associates handles company formation…

Step 4: Register for Taxes

Depending on your business structure, you may need to register for:

• Corporation Tax
• VAT
• PAYE

We manage these registrations under compliance packages.

Step 5: Open a Business Bank Account

A dedicated account is vital for managing income and tax responsibilities…

Step 6: Establish Your Bookkeeping and Accounting Processes

• Track revenue and costs
• Issue and retain invoices
• Prepare for tax submissions

These services are offered through our bookkeeping packages.

Step 7: Understand Ongoing Filing and Legal Duties

• File annual Confirmation Statement
• Submit company accounts
• Maintain director/shareholder/PSC registers
• Notify Companies House of changes

We offer compliance management to help with these tasks.

Why Work with Dragonfly Associates?

• Company formation
• Registered office and service address
• Tax and payroll registration
• VAT services
• Ongoing bookkeeping and filing
• Startup and expansion guidance

All services are tailored to your needs.

Frequently Asked Questions

Get Started with Confidence

Sole Trader: Simple, Flexible, but with Risk

A sole trader is the most straightforward way to start a business in the UK. It requires very little setup, minimal paperwork, and gives you complete control.

Benefits of Being a Sole Trader

• Easy to set up — register for Self Assessment and start trading
• Fewer legal and reporting obligations
• Retain all profits (after tax)
• Simple bookkeeping

This model works well for freelancers, consultants, tradespeople, or anyone starting small.

Downsides to Consider

• Unlimited personal liability — if your business is sued or incurs debt, you are personally responsible
• Less credibility — larger clients may hesitate to work with unregistered businesses
• Harder to scale — funding and investment are more difficult to secure
• Fewer tax planning options compared to companies

Limited Company: Professional, Secure, and Growth-Oriented

A limited company is a separate legal entity. It has its own bank account, financial records, and legal status. Directors manage it, and shareholders own it (even if that’s just you in both roles).

Advantages of a Limited Company

• Limited liability — personal assets are protected
• Potential tax efficiency — Corporation Tax is often lower than higher income tax bands
• Greater access to funding and business credit
• Enhanced brand image and legitimacy
• Share ownership allows flexible business growth or exit

Responsibilities That Come With It

• Must register with Companies House
• Must submit annual accounts and confirmation statements
• More administrative duties (though Dragonfly Associates can handle these for you)
• Greater transparency — company data is public

A Quick Comparison Table

What Dragonfly Associates Recommends

• Weigh the pros and cons of each structure
• Understand their legal and tax implications
• Form a limited company if that’s the right fit — in under 6 hours
• Switch from sole trader to limited company later (if needed)

Whether you’re just getting started or scaling up, we offer tailored advice and full company formation services. We also provide startup support packages to guide you through the decision-making process with clarity and confidence.

Frequently Asked Questions

Final Thoughts: Choose What Supports Your Goals

If you’re testing a side hustle or running a small-scale operation, a sole trader setup may be the simplest starting point. But if you’re serious about scaling, protecting your assets, and projecting professionalism, forming a limited company makes strategic sense.

Let Us Help You Make the Right Move

What Is a Limited Company—and Why Choose One?

A limited company is a legal structure where your business is treated as a separate entity. This means that:

• Your personal assets are protected if the business runs into debt
• You pay Corporation Tax on profits, which can be more efficient than Income Tax in many cases
• Your company can build its own credit history, own property, and enter into contracts

It also gives your business more credibility in the eyes of clients, investors, and suppliers—especially when operating internationally.

Step-by-Step: Registering Your UK Limited Company

1. Choose Your Company Name

This is your brand, your first impression, and it must be:

• Unique (check against the Companies House database)
• Free of restricted words (like “bank” or “royal”)
• Not infringing on any trademarks

2. Decide on a Company Structure

Most people opt for a Private Company Limited by Shares (Ltd), which means:

• You’ll issue shares to shareholders (even if it’s just you)
• You’ll have at least one director (again, it can be you)

Other options include:

• Limited by Guarantee (ideal for non-profits)
• LLP (for professional partnerships)

Not sure which suits your case? We’ll advise you based on your business model.

3. Provide Company Details

You’ll need to decide on:

• A registered office address (this will appear on public record — use ours to protect your privacy)
• A service address for directors (again, we offer this if needed)
• The company’s SIC code (a number that describes your business activity)
• The company’s share structure: how many shares and at what value?

Dragonfly Associates helps you fill out all this quickly via our online portal.

4. Appoint Directors and Shareholders

You need:

• At least one director (18+, no criminal or bankruptcy restrictions)
• At least one shareholder (can be the same as the director)

We’ll draft your Memorandum and Articles of Association and ensure you comply with all legal duties.

5. Submit to Companies House

Once everything is complete, we file the application electronically.

Turnaround: 3 to 6 working hours is typical.

You’ll receive your Certificate of Incorporation and all core documents in your secure client area.

What Documents Will You Get?

After formation, Dragonfly Associates provides:

• Certificate of Incorporation
• Memorandum & Articles of Association
• Share Certificates
• Company Register (digital or print)
• Your unique company number and registration confirmation

These documents are essential for opening a business bank account and dealing with HMRC.

Our Services: Everything Under One Roof

Dragonfly Associates isn’t just a formation agent—we’re your long-term partner in compliance and growth. Our Company Formation packages include:

• Name checking and legal setup
• Registered office and service address
• Share issuance and PSC register creation
• Filing of your first confirmation statement
• Ongoing reminders for compliance deadlines
• VAT and PAYE registration on request

We also offer tailored packages for non-UK residents—including mail handling, tax guidance, and more.

Frequently Asked Questions

Final Thoughts: Is a Limited Company Right for You?

If you want to grow your business beyond a side hustle—or protect your personal assets—a limited company is a smart move. It signals professionalism, builds trust, and opens doors to better funding, clients, and long-term planning.

Let’s Build Your Business