How to Form a UK Limited Company for Free with WeFile

Starting a business in the UK begins with one critical step: incorporating your company. Traditionally, this process has involved either expensive formation agents or navigating the complexities of Companies House on your own. WeFile changes that entirely — offering a completely free company formation service with direct electronic submission to Companies House.

In this comprehensive guide, we'll walk you through everything you need to know about forming a UK limited company using WeFile, from checking your company name availability to receiving your official Certificate of Incorporation.

A Private Company Limited by Shares is the most common type of business structure in the UK. It's a separate legal entity from its owners (shareholders), meaning:

• Limited liability — shareholders' personal assets are protected. Their liability is limited to the value of their shares.
• Separate legal identity — the company can own property, enter contracts, and sue or be sued in its own name.
• Share capital — ownership is divided into shares, which can be distributed among multiple shareholders.
• Tax efficiency — limited companies pay Corporation Tax on profits rather than Income Tax, which can offer significant savings.

WeFile currently supports the formation of Private Companies Limited by Shares with individual officers only. This means all directors, shareholders, secretaries, and persons with significant control (PSCs) must be natural persons — corporate officers are not supported at this time.

There are dozens of formation agents in the UK, but WeFile stands apart for several important reasons:

• Completely free — WeFile charges absolutely nothing for company formation. No platform fees, no commissions, no hidden costs, and no forced upsells. Ever.
• Direct Companies House submission — your application is submitted electronically via the official Companies House XML Gateway, ensuring fast and reliable processing.
• Fast turnaround — most standard incorporations are processed by Companies House within 1–3 business days.
• Full documentation — upon successful incorporation, your Certificate of Incorporation and Memorandum of Association are automatically available in your WeFile dashboard.
• No subscription required — company formation is free for all registered WeFile users, regardless of whether you hold an Accountant Membership or any other subscription.

The only cost involved is the standard £100 incorporation fee charged by Companies House directly to your Presenter Credit Account. WeFile makes zero margin on this transaction.

Before beginning the formation process, make sure you have the following ready:

• A WeFile account — registration is free and takes less than a minute. No credit card required.
• A Companies House Presenter Account — also known as a Credit Account, this is required for all electronic filings. It's completely free to set up via the Companies House website. Your Presenter ID and authentication code will be needed at the submission step.
• Your proposed company name — you can check availability directly on WeFile's company formation page before starting.
• Registered office address — a UK address where official correspondence will be sent.
• Details of directors and shareholders — full name, date of birth, nationality, occupation, residential address, and service address for each individual.
• Share capital structure — the number and type of shares, their nominal value, and how they're allocated among shareholders.

Every company formation starts with choosing the right name. Your company name must be unique — it cannot be the same as, or too similar to, an existing company on the Companies House register.

WeFile includes a built-in name availability checker right on the company formation page. Simply type your proposed name and we'll instantly query the Companies House database to tell you whether it's available.

A few tips for choosing your company name:

• The name must end with "Limited" or "Ltd" (this is added automatically).
• Avoid names that are offensive or suggest a connection to the government.
• Certain words and expressions (e.g., "Royal", "Bank", "Insurance") require special permission from the Secretary of State.
• Check that a matching domain name is available if you plan to build a website.

Once you've confirmed your company name is available, the WeFile formation wizard guides you through entering all the required details:

• Company name and type — confirm the name and select Private Company Limited by Shares.
• Registered office address — the official UK address for your company. This will appear on the public register.
• SIC codes — Standard Industrial Classification codes that describe your company's business activities. You can search and select from the official list.

WeFile's wizard is designed to be intuitive, with helpful tooltips and validation at every step to ensure you don't miss anything important.

Every UK limited company must have at least one director and at least one shareholder (who can be the same person). WeFile supports adding multiple officers of each type:

• Directors — responsible for running the company. You'll need to provide their full name, date of birth, nationality, occupation, residential address, and a service address (which can be the same as the registered office).
• Shareholders — the owners of the company. You'll specify how many shares each person holds and the nominal value of those shares.
• Secretary (optional) — a company secretary is not legally required for private companies, but you can appoint one if you wish.
• Persons with Significant Control (PSCs) — individuals who hold more than 25% of shares or voting rights, or who exercise significant influence over the company. PSC details are required by law.

Important: All officers must be individuals (natural persons). Corporate directors, corporate shareholders, and corporate PSCs are not currently supported on WeFile.

Share capital represents the total value of shares that a company can issue. During formation, you'll need to define:

• Share classes — most companies start with a single class of ordinary shares, but you can create multiple classes with different rights.
• Nominal value — the face value of each share (commonly £1 per share).
• Number of shares — how many shares to issue at incorporation.
• Share allocation — how shares are distributed among the shareholders.

For most small businesses, a simple structure of 100 ordinary shares at £1 each is perfectly adequate. WeFile makes it easy to set this up with sensible defaults.

The Articles of Association are the rules that govern how your company is run. They cover matters such as the appointment and removal of directors, the issuing of shares, and how decisions are made.

WeFile provides Model Articles of Association as prescribed by the Companies Act 2006. These are suitable for most private companies limited by shares and are the default choice for the vast majority of new incorporations.

You can review the model articles within the WeFile wizard before proceeding. If your company has specific requirements that differ from the standard model articles, you should seek legal advice before incorporation.

To submit your formation application electronically, WeFile requires your Companies House Presenter ID and authentication code. These credentials allow WeFile to submit the application on your behalf via the official XML Gateway.

Companies House will charge the standard £100 incorporation fee directly to your Presenter Credit Account. WeFile does not collect, handle, or mark up this fee in any way.

If you don't yet have a Presenter Account, you can apply for one free of charge on the Companies House website. It typically takes a few days to receive your credentials by post.

Before submission, WeFile presents a comprehensive review screen showing all the details you've entered. Take a moment to carefully check:

• Company name and registered office address
• Director and shareholder details
• Share capital structure
• PSC information
• Articles of association selection

Once you're satisfied everything is correct, click Submit. Your application is then transmitted directly to Companies House via their secure electronic gateway.

After you submit your formation application, here's what to expect:

• Real-time tracking — WeFile automatically polls Companies House for status updates. You can track the progress of your application directly from your dashboard.
• Processing time — most standard incorporations are processed within 1–3 business days. More complex applications may take longer.
• Certificate of Incorporation — once approved, your official Certificate of Incorporation is automatically retrieved and made available for download in your WeFile dashboard.
• Memorandum of Association — this document is also generated and available alongside your certificate.

If Companies House rejects your application (for example, due to a name conflict), you'll be notified with the specific reason so you can make corrections and resubmit.

Congratulations on forming your company! Here are the essential next steps:

• Register for Corporation Tax — you must register with HMRC for Corporation Tax within 3 months of starting business activities. WeFile can help you file your CT600 returns when the time comes.
• Open a business bank account — you'll need your Certificate of Incorporation to open a business bank account.
• Register for VAT (if applicable) — if your turnover exceeds the VAT threshold (currently £90,000), you must register for VAT.
• Set up payroll — if you plan to pay yourself or employees a salary, you'll need to register as an employer with HMRC.
• Keep proper records — maintain accurate financial records from day one. This will make your annual accounts and tax returns much easier.
• File annual accounts — your first accounts must be filed with Companies House within 21 months of incorporation. WeFile's CT600 filing wizard makes this process simple and affordable.

Is it really free?

Yes. WeFile charges absolutely nothing for company formation. The only cost is the £100 fee charged by Companies House directly to your Presenter Credit Account.

Do I need a WeFile membership?

No. Company formation is available to all registered WeFile users at no cost, regardless of membership status.

Can I form a company with corporate directors?

Not at this time. WeFile currently supports individual (natural person) directors, shareholders, secretaries, and PSCs only.

How long does it take?

Most standard incorporations are processed by Companies House within 1–3 business days after electronic submission.

What if my application is rejected?

You'll be notified of the specific reason for rejection. Common reasons include name conflicts or incomplete information. You can correct the issues and resubmit at no additional cost.

Ready to incorporate your UK limited company? Visit our Company Formation page to check your company name availability and start the process. It takes just minutes to complete the wizard, and your application will be on its way to Companies House immediately.

If you have any questions or need assistance, our Help Center has comprehensive guides, or you can raise a support ticket and our team will be happy to help.