Company Set Up Solicitor: What Do They Actually Do?

Setting up a company can look simple at first. You can fill in a Companies House form online, pay the filing fee, and have a company number pretty quickly.

But if you're choosing between doing it yourself, asking your accountant, or speaking with a company set up solicitor, the real question is usually this: will the company be set up in a way that actually protects you and works for your business?

The good news is that this doesn't have to be complicated. A proper legal setup is about getting the practical foundations right from day one: the company, the shares, the decision-making rules, the founder protections, and the key records you need to keep.

What Does A Company Set Up Solicitor Actually Do?

A company set up solicitor helps you form your company in a way that fits your ownership, funding plans and risk profile, not just in a way that gets you a company number.

Companies House incorporation is only one part of the job. A legal setup usually looks at how the company will be owned, controlled and documented under the Companies Act 2006. That can make a big difference if you have co-founders, investors, family shareholders, different share classes or plans to issue shares later.

A company formation solicitor or business set up solicitor may help you with:

• Choosing the right structure: for example, a private company limited by shares, partnership, LLP or sole trader setup.
• Company incorporation: preparing and filing the Companies House application, including the company name, registered office, directors, shareholders and persons with significant control.
• Share structure: deciding how many shares to issue, who gets them, and whether you need different rights attached to different shares.
• Articles of association: tailoring the company's constitutional rules rather than relying only on the standard model articles.
• Shareholders agreement: setting private rules between the owners about exits, disputes, decision-making and founder departures.
• Statutory registers: helping you set up records for members, directors, PSCs and share allotments.
• Founder protections: putting confidentiality, intellectual property and non-compete or non-solicitation protections in the right documents where appropriate.

Think of incorporation as the shell, and the legal documents as the wiring. The company can exist without much wiring, but it may not work well once money, customers, staff or disagreements enter the picture.

Can I Just Register A Company Online Myself?

Yes, you can register a company online yourself, but that doesn't mean the default setup will be right for your business.

Companies House lets you incorporate a private company limited by shares online. The standard online incorporation fee is £100, although fees can change so it's worth checking Companies House before filing. You'll need details such as the company name, registered office address, director details, shareholder details, SIC code and persons with significant control.

For a simple one-person business, that may be enough to get started. But the standard process won't usually prompt you to think through the issues that matter later, such as:

• what happens if a co-founder stops working in the business after three months
• whether shares should vest over time rather than being owned outright from day one
• who can approve major spending or take on debt
• how a shareholder can sell or transfer shares
• whether the company owns the IP created before incorporation
• what happens if you raise investment and need clean company records

Here's a simple example. Maya and Tom start a software company and register it online with 100 ordinary shares split 50/50. They each pay £1 for their shares. Six months later, Tom leaves, but he still owns half the company. Without a shareholders agreement or vesting arrangement, Maya may struggle to raise investment or make big decisions without Tom's involvement.

The incorporation worked. The setup didn't.

If your business has co-founders, outside funding plans, valuable IP, or more than one person contributing money or effort, it's worth getting tailored advice before you press submit.

Should I Use An Accountant Or A Solicitor To Set Up My Company?

It depends on what you need: an accountant is usually focused on tax and accounting setup, while a solicitor or legal consultant is focused on ownership, control, legal risk and documents.

Many accountants are excellent at helping with HMRC registration, bookkeeping systems, payroll, VAT questions, corporation tax planning and ongoing accounts. Some also offer company formation as an add-on. That can work well if you're setting up a simple company and mainly need tax and accounting support.

A legal setup is different. It looks at how the company operates between the owners and with the outside world.

Where An Accountant Usually Helps

• choosing tax registration steps, such as corporation tax, PAYE or VAT
• setting up bookkeeping and accounting software
• advising on director pay, dividends and allowable expenses
• preparing accounts and tax returns
• helping you understand HMRC deadlines

Where A Company Set Up Solicitor Usually Helps

• choosing the right legal structure and ownership model
• drafting or tailoring articles of association
• preparing a shareholders agreement
• dealing with founder IP, confidentiality and restrictive covenants
• recording share issues, transfers and company approvals properly
• checking whether your customer contracts, website terms or supplier agreements are ready for trading

For many businesses, the best setup involves both. Your accountant helps you with tax and numbers, while your legal team helps you with ownership and protection.

If someone offers to register the company for you, ask exactly what's included. A cheap formation service may only file the Companies House form. That isn't the same as tailored articles, shareholder protections and proper corporate records.

What Should Be Included In A Proper Company Setup Package?

A proper company setup package should include the incorporation itself plus the documents and records that make your company work properly in real life.

Here is a practical checklist you can use when comparing options.

Company Formation Details

• Company name: check it's available and not too close to an existing name or trade mark.
• Registered office: choose an address in the correct UK jurisdiction, such as England and Wales if that's where you're incorporating.
• Directors: record who will manage the company and check they're eligible to act.
• Shareholders: record who owns the company and how many shares they hold.
• PSC information: identify persons with significant control and file the right details with Companies House.
• SIC code: select the code that best describes your business activity.

Internal Company Documents

• Articles of association: the public constitutional rules filed or adopted for the company.
• Shareholders agreement: the private contract between shareholders that deals with rights, exits and disputes.
• Board and shareholder approvals: records showing the company has approved key decisions.
• Statutory registers: records of members, directors, secretaries, PSCs and share movements.
• Share certificates: evidence of share ownership issued to shareholders.

Founder And Trading Protections

• IP assignment: makes sure the company owns business assets created before or around incorporation.
• Confidentiality terms: protects sensitive business information and trade secrets.
• Customer terms: sets payment, scope, liability and cancellation rules for customers.
• Supplier agreements: sets expectations with key suppliers, contractors or manufacturers.
• Privacy documents: helps you meet UK GDPR and Data Protection Act 2018 requirements if you collect personal data.

Documents work best when they're tailored to how your business actually runs. Templates can be a useful starting point, but they often miss the details that cause problems later.

Do I Need A Shareholders Agreement When I Set Up A Company?

If your company has more than one shareholder, you should seriously consider a shareholders agreement before the business becomes valuable or complicated.

Articles of association are public and mainly deal with the company's constitutional rules. A shareholders agreement is private and can go further. It can cover commercial points that you probably don't want on the public Companies House register.

For example, a shareholders agreement can explain:

• who makes day-to-day decisions
• which decisions need unanimous approval or a special majority
• what happens if someone wants to leave
• whether shares must be offered to existing shareholders before an outside buyer
• how to value shares if someone exits
• what happens if a founder dies, becomes seriously ill or stops contributing
• whether founders are restricted from competing with the company
• how disputes will be handled before they damage the business

Here is a simple fill-in outline of the sections you might expect to discuss with a lawyer. This isn't a finished legal document, and it should be tailored before you use it.

1. Parties And Company Details: name the company and each shareholder clearly.
2. Shareholdings: set out who owns what, including any different share classes.
3. Roles And Contributions: record what each founder is expected to contribute, such as cash, time, contacts or IP.
4. Decision-Making: list ordinary decisions and reserved matters that need higher approval.
5. Share Transfers: explain when shares can be sold, transferred or bought back.
6. Leaver Rules: set out what happens if a founder leaves early, resigns or is removed.
7. Confidentiality And IP: protect company information and confirm ownership of business assets.
8. Disputes And Deadlock: create a process for resolving serious disagreements.
9. Exit And Sale: deal with tag-along, drag-along and sale approval rules if relevant.

Getting this agreed early is usually much easier than trying to negotiate it after something has gone wrong.

Does It Matter If My Company Set Up Solicitor Is Local?

Usually, no. If you search for a company set up solicitor in Sheffield, Manchester, London or anywhere else, the most important thing is whether they understand your business model and can give practical company law support.

Company incorporation, Companies House filings, articles, shareholders agreements and founder documents can usually be handled online or over the phone. For most startups and SMEs, you don't need to sit in a local office to get the company set up properly.

There are times when local knowledge may help, especially if your setup is tied to a specific location. For example:

• you're taking a commercial lease for premises in Sheffield, Leeds or another local area
• your licence or trading approval depends on a local authority process
• you're buying an existing local business and need to understand its premises, staff and contracts
• you want in-person meetings because the ownership structure is sensitive or complex

For standard company setup work, though, location is usually less important than scope. You want to know what you're getting.

When you compare a free template, an online fixed-fee legal service and a traditional hourly billing firm, look at:

• what documents are included: incorporation only, or articles, shareholders agreement, registers and founder documents too
• whether advice is tailored: especially around shares, voting, IP and exits
• how pricing works: a fixed fee gives you more certainty, while hourly billing can move with the time spent
• who will answer your questions: make sure you can speak with someone who understands your setup
• what happens after incorporation: you may need trading terms, contractor agreements, employment contracts or privacy documents soon after

What Changes At Companies House Should I Know About?

You should know that Companies House rules are becoming stricter, especially around identity, company information and lawful use of companies.

The Economic Crime and Corporate Transparency Act 2023 is changing parts of the UK company setup and filing system. Some changes are already in force, while others are being phased in. These reforms are designed to improve the accuracy of the register and reduce misuse of UK companies.

For new companies, this can affect the information you need to provide and the checks you need to pass. For example, companies now need to provide a registered email address and confirm that they're being formed for a lawful purpose. Companies House also has stronger powers to query or reject information that appears inconsistent or incorrect.

Since 18 November 2025, identity verification has been mandatory for new directors and PSCs as part of incorporation and new appointments. Existing directors generally provide their Companies House personal code with the next confirmation statement during the transition period, while PSCs have role-specific 14-day deadlines.

This is one reason proper records matter. After incorporation, you'll still need to file a confirmation statement at least once every 12 months and keep your company registers accurate. The confirmation statement fee is £50 online and £110 by post.

If you're setting up now, it's worth building good habits from day one. Keep copies of board minutes, shareholder approvals, share certificates, registers, PSC details and Companies House filings in one place. If you later raise investment, sell the business or bring in a co-founder, clean records can save a lot of time.

Key Takeaways

• A company set up solicitor does more than register your company. They help shape the legal foundations around ownership, control and protection.
• Online incorporation can work for simple setups, but it may not deal with co-founder exits, IP ownership, share rights or investor readiness.
• An accountant and a legal team often do different jobs. Your accountant helps with tax and accounts, while your legal team helps with company structure and documents.
• A proper setup should cover incorporation, share structure, articles, statutory registers, approvals and founder protections.
• If you have more than one shareholder, a tailored shareholders agreement can prevent difficult disputes later.
• Companies House rules are changing, so accurate filings, identity checks and good records are becoming even more important.

If you'd like help with setting up your company, choosing the right share structure, preparing founder documents or getting your shareholders agreement in place, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.