UK Company Formation & Compliance: Companies House and VAT
Setting up and running a commercial venture in the UK involves registering with Companies House and HMRC.
Entrepreneurs in the UK typically choose between operating as a sole trader or incorporating a private limited company (Ltd). Incorporating a company provides limited liability protection and establishes a distinct legal identity. Directors must file confirmation statements and annual accounts with Companies House, submit Corporation Tax returns to HMRC, and register for Value Added Tax (VAT) when annual taxable turnover reaches the statutory threshold. Our step-by-step guides cover company naming rules, memorandum and articles of association, business banking, and commercial borrowing.
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Register a private limited company online at Companies House for £100, choose your directors. Give your SIC code. Then register for Corporation Tax within 3 months of starting to trade.
6 steps · 24 hours (online registration) · £100 online (from 1 Feb 2026)2025-Latest
An unsecured loan is also called a personal loan. You do not need collateral. Your house or car is not at risk. It has a fixed rate, a fixed monthly payment, and a fixed end date. The term is usually 1–7 years. UK banks show you your real rate before you apply. They use a soft-search eligibility check. So you can compare without harming your credit score.
6 steps · Same-day decision; funding usually 1–5 working days · Typical APRs 7–30% depending on credit; arrangement fees rare on unsecured loans2025-Latest
Bad credit in the UK pushes you towards expensive credit. But there are truly cheaper routes. These include credit unions, Community Development Finance Institutions, guarantor options, and credit-builder products. FCA price caps limit the worst of the market. The real danger is fee-advance scams. Another danger is offers you did not ask for that say "no credit check."
6 steps · 1–7 days depending on the route · From ~1–3% a month at credit unions to over 1,000% APR at payday lenders (avoid) — per MoneySavingExpert2025-Latest
The government-backed Start Up Loans scheme lends £500–£25,000 per person. It charges a fixed 7.5% interest. You can use it to start or grow a business. It is given as a personal loan. It is for new businesses or businesses trading under 60 months. So you do not need a long trading history. Established businesses go to banks and the British Business Bank ecosystem. They borrow larger amounts against cash flow or assets.
6 steps · From a few days (Start Up Loans: weeks) to 2–3 months (secured bank lending) · 7.5% fixed (Start Up Loans) to 10–30%+ (online lenders); arrangement fees 0–2%2025-Latest
In the UK, there is no single loan called a home equity loan. There are three main ways to borrow against your home. You can remortgage for a larger amount. You can take a further advance from your current lender. Or you can take a second-charge secured loan. This loan sits behind your main mortgage. All three ways put your home at risk if you cannot pay. The key choice is which way costs you the least for your needs.
6 steps · 4–8 weeks remortgage; 3–6 weeks secured loan · Arrangement fees £0–£1,500+; valuation and legal costs; early repayment charges may apply2025-Latest
A bridging loan is a short-term loan secured against property. It bridges the gap between two events. Terms are usually 3–24 months. Regulated residential bridges are currently capped at 12 months. People most often use one to buy a new home before the old one sells. They also use one to buy a property before long-term finance is ready. This money is expensive. But it is fast. Funds can arrive in days.
6 steps · Days to arrange; terms run 1–24 months · Interest ~0.5–1.5% per month, plus arrangement (~1–2%), valuation, legal, and exit fees2026-Latest
FAQ
Frequently Asked Questions
Common questions and essential rules for business in United Kingdom.
How long does it take to register a private limited company with Companies House?
Online company registrations are typically approved within 24 hours (excluding weekends). The statutory registration fee is paid directly to Companies HouseUK Companies House — The official register of UK companies. You incorporate a limited company and file annual accounts through it.Click for official info ↗ during the application.
What is the mandatory VAT registration threshold in the UK?
You must register your business for VAT if your total taxable turnover exceeds £90,000 over a rolling 12-month period. You must also register if you expect your turnover to exceed that threshold within the next 30 days.
What is a Companies House Confirmation Statement?
A confirmation statement (Form CS01) verifies that the company information registered at Companies House (including directors, registered office address, and Persons with Significant Control) is accurate. It must be filed at least once every 12 months.
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