Thinking of moving from sole trader to limited company, or starting a new limited company in Dartford? You are not alone — it is one of the most common questions we get from local businesses. This guide walks you through the key steps, explains what to expect and highlights the common mistakes to avoid.
Step 1 — Decide if a limited company is right for you
A limited company is a separate legal entity from you as an individual. That means your personal finances are protected if the business runs into trouble, and there can be significant tax advantages once you are earning above a certain level — typically once your profits exceed around £30,000 per year.
The trade-off is more administration. A limited company must file annual accounts with Companies House, submit a Corporation Tax return to HMRC, maintain company records and file a Confirmation Statement each year. This is why most limited company directors use an accountant — the cost of the accountant is typically far less than the time and risk of doing it wrong.
Step 2 — Choose a company name
Your company name must be unique and not too similar to an existing registered company. You can check availability on the Companies House website. Once registered, no other company can use the same name.
Most small businesses in Dartford use a name that reflects what they do or simply their own name — for example "Smith Electrical Services Limited" or "Dartford Digital Marketing Ltd".
Step 3 — Register with Companies House
You can register a limited company online through Companies House for £50 (as of 2026). You will need:
- A company name
- A registered address (this appears on public records — many people use their accountant's address)
- Details of directors and shareholders
- A memorandum and articles of association (standard templates are available)
Registration typically takes 24 hours online. At BDH we handle this entire process for Dartford clients as part of our company formation service, ensuring the structure is right for your situation from the start.
Step 4 — Register with HMRC
Within three months of starting to trade you must register your company for Corporation Tax with HMRC. You will also need to register for PAYE if you plan to pay yourself a salary, and for VAT if your turnover is likely to exceed £90,000 in a 12-month period (or if you choose to register voluntarily).
Missing these registration deadlines can result in penalties from HMRC, so it is important to get them done promptly.
Step 5 — Set up your bookkeeping
From the moment your company is incorporated, all business income and expenses must be recorded accurately. Making Tax Digital means that HMRC requires digital bookkeeping records — software such as Xero, QuickBooks or FreeAgent makes this straightforward.
Getting this right from the beginning saves a significant amount of time and hassle at year-end, and ensures you never miss a deductible expense.
Step 6 — Understand your ongoing obligations
Once incorporated, your company has annual obligations including:
- Annual accounts filed with Companies House (within 9 months of your financial year end)
- Corporation Tax return filed with HMRC (within 12 months of your financial year end)
- Corporation Tax paid (within 9 months and 1 day of your financial year end)
- Confirmation Statement filed each year (within 14 days of the anniversary of incorporation)
- Payroll run and RTI submissions to HMRC each month if you are on the payroll
Should I use an accountant to set up my limited company?
For most Dartford businesses, yes. Getting the structure wrong at the start — wrong share structure, missing registrations, incorrect accounting period — can be costly to fix later. A good local accountant will handle all of this correctly from day one and then look after your ongoing compliance so you can focus on your business.
Book a free consultation with BDH — we handle company formation for Dartford businesses as part of a fixed monthly fee that includes everything you need from day one. We are based in Erith, just up the A2, and serve Dartford clients remotely or in person.
You can also explore our small limited company accounting service or startup accounting packages.