What actually happens when you incorporate a limited company, and the first financial decisions that matter.
Companies House sends a PDF
You fill out the form, pay the £12 fee, and within hours Companies House sends you a certificate. Congratulations, you're now a director of a limited company.
Then reality sets in: what do you do next?
The first financial decisions
Open a business bank account immediately. From day one, keep the company's money separate from your own. This protects your limited liability status and keeps your records clean.
Register for Corporation Tax. You have three months from starting to trade to register with HMRC. Don't miss this.
Understand your filing obligations. As a director, you'll need to file:
- Annual accounts with Companies House
- A Corporation Tax return with HMRC
- Your personal Self Assessment (because you're a director)
Decide on salary and dividends. The most tax-efficient structure is usually a low salary (around the National Insurance threshold) plus dividends. But this depends on your situation, talk to an accountant before assuming.
You don't have to figure it out alone
Most founders I speak to feel overwhelmed in those first few months. That's completely normal. The structure is new, the obligations feel complex, and there's a lot of conflicting advice online.
The best thing you can do is get proper guidance early. The decisions you make in year one shape your financial structure for years to come.