Learn how couriers can set up a limited company, register with Companies House and stay on top of tax and paperwork.
Tristan Bacon — Updated 27 May 2026
Starting your own courier business is a big step. Whether you’re moving away from being a sole trader or setting up from scratch, creating a limited company can give you more control, more credibility and more room to grow.
This guide walks you through the full process — from setting up your company to staying compliant and managing your finances day to day.
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Before you set up a limited courier company, it’s worth understanding how it compares to being a sole trader — especially if you’re just getting started.
A sole trader is the simplest way to start a courier business. You and the business are legally the same entity.
When it works best: Most couriers start as sole traders when testing the waters or working at a smaller scale. It’s ideal if you want to get up and running quickly with minimal admin.
A limited company is a separate legal entity from you as an individual.
When it makes sense: Many couriers switch to a limited company as their income grows (often around £30k–£50k+) or when they start working with larger clients who expect a more formal business structure.
Getting everything ready upfront will make the process quicker and smoother.
You’ll need to select a SIC (Standard Industrial Classification) code when registering your company.
For courier businesses, use 49410 – Freight transport by road
This covers courier work, haulage and general transportation of goods.
The process is straightforward and usually takes less than 30 minutes to complete online.
Your courier company name must:
Keep it simple, easy to spell and relevant to transport or logistics.
You can register your company:
Most couriers complete this themselves, but if you’re unsure, an accountant or formation agent can handle it for you.
During registration, you’ll need to submit:
As part of the process, you’ll also create:
Once approved by Companies House (usually within 24 hours), you’ll receive the following by email and post:
At this point, your company is officially set up and ready to trade.
FInally, you’ll need to register your company for corporation tax with HMRC within 3 months of starting to trade. This means when your company begins any business activity — such as taking on jobs, issuing invoices, or receiving income.
Setting up your courier company is just the start. These next steps are essential to get your business running properly.
A separate business bank account is a must.
It allows you to:
Without this, things quickly become messy — especially once you start handling multiple jobs and payments.
You must register for VAT if your turnover exceeds the threshold (currently £90,000).
However, many couriers choose to register earlier.
Here’s how VAT works in simple terms:
If most of your customers are VAT-registered businesses, VAT often becomes neutral — but it still needs to be managed correctly.
👉 If you’re unsure, it’s worth reading more about VAT for couriers before deciding whether to register.
Make sure your payment setup is ready from day one.
This includes:
Delays here can directly impact your cash flow, especially when you’re just starting out.
Running a limited company comes with ongoing legal and financial responsibilities. Staying on top of these is critical.
Corporation tax is the tax your company pays on its profits, not total income.
Profit = income – allowable expenses
Most small courier businesses will fall into the lower or marginal range, depending on how much profit they generate.
You’ll need to file a corporation tax return with HMRC within 9 months and 1 day after your accounting period ends.
You must submit annual accounts to Companies House.
These show your income, expenses, profit or loss.
Deadlines depend on your accounting period, but missing them can result in penalties.
This is a yearly filing that confirms your company details are correct, and includes details of your directors, shareholders and registered address, and costs £50 to submit. Even if nothing’s changed, you’ll need to file it.
As a director, you are legally responsible for:
Missing deadlines can lead to fines and, in serious cases, your company being struck off.
If you pay yourself a salary, you’ll need to:
Most directors use a mix of salary and dividends to manage tax efficiently.
Getting your accounting right early will save you time, stress and money.
Always use your business account for:
Mixing finances is one of the most common mistakes and creates unnecessary admin later.
As a courier, your key expenses will include:
Keeping accurate records ensures:
Using courier accounting software makes managing your business far easier.
Popular options include:
Why it matters in practice:
Without software, this often turns into spreadsheets and guesswork — which is where mistakes happen.
Many couriers see an accountant as an extra cost — but in reality, they often save you time, stress and money.
For most limited companies, especially as you grow, having an accountant quickly becomes essential.
Understanding the costs upfront helps you plan properly.
👉 In most cases, running a limited company costs around £1,000–£2,000 per year, depending on how much support you use.
Many new company owners run into the same issues early on.
Avoiding these will save you time, money and unnecessary stress.
Be your own boss. Set your own hours. Make your own money.
You register online through Companies House by choosing a company name, adding your director and shareholder details, selecting your SIC code and paying the registration fee.
Corporation tax is charged on your company’s profits, not turnover. The rate depends on profit level, with small profits taxed at a lower rate and the main rate applying to larger profits.
A confirmation statement is an annual Companies House filing that confirms your company details are correct, including your registered office, directors and shareholders.
