Login How to set up a limited company A step-by-step guide for contractors in the UK So, why set up a limited company? If you fall outside IR35 then working through your own limited company is one of the most tax efficient ways to work. You will have the ability to dictate when, where and how you work. You’ll have the opportunity to build your own brand and will also be able to pitch for work that would be unavailable to a sole trader or an umbrella contractor, some of which will carry a higher pay rate. How to set up a limited company in 3 simple steps 1. Choose your limited company name This may seem like a simple step but large organisations have spent millions of pounds in choosing the perfect company name. Our advice would be to choose something that describes what you do whilst also being web friendly but the decision is yours to be as creative or practical as you like. 2. Register your limited company You’ll need to register your company name with companies house with some basic information including your full name, address, mother’s maiden name and contact details. 3. Set up a limited company bank account You’ll then need to set up a bank account for your limited company, complete a VAT Registration (if applicable) and register your company for the relevant taxes. How do I set up a limited company? In this video we explain the basic processes of how to set up a limited company in just 80 seconds. FAQs Expand all Do limited companies need an accountant? Can I be PAYE and have a limited company? What are the responsibilities of being a limited company director? Why do I need to set up a company bank account? As a director of a limited company, should I pay myself? What will my employment status be when working through a limited company? Would PayStream advise my agency of the company details? How long will it take to get set up and ready for payment? How can I arrange insurance for my limited company? How much would your take home pay be when operating through a limited company? Try our take home pay calculator In their own words: My first six months owning a limited company We recently had the pleasure of speaking with Tabatha Rose who has taken the exciting step of setting up a limited company and, as a result, is now a director of her own business. We wanted to know how she has got on over the past six months. Read Tabatha's story How does a limited company work? Making the move to a limited company contractor can be quite daunting. Our infographic helps to the processes of working as a limited company contractor in the simplest of ways. Download infographic Get your free limited company quote. Name * Email * Telephone * Have you been referred to us by a recruitment company? * Yes No What is the Umbrella / Limited rate of pay? Has your agency/client confirmed to you that your new assignment will be outside IR35? * Yes No Unsure Marketing By completing and sending this form you agree to receive a telephone call, postal communication or email from us. If you would also like to receive future news about our products, services and offers please check this box. Related Pages What is a PSC? Take Home Pay Calculator Business Bank Accounts Understanding Dividends Freelancing on the side Contractor Accountants Stay up to date Sign up today for our mailing list for the latest industry news and updates. Reg. Address: Mansion House Manchester Road Altrincham Cheshire WA14 4RW Company Name: PayStream Accounting Services Ltd VAT No: 112587916 Registration No: 07598955 Cookie Policy Privacy Statement Sitemap Modern Slavery Statement Gender Pay Gap Report Tax Strategy Careers Tel: 0161 923 0201