✏️ Updated March 2026
Setting Up a Limited Company
for Rent to Rent: Step-by-Step Guide
How to set up a limited company for your rent to rent business in the UK — costs, the right company name, bank accounts, insurance and the operational steps to be ready for your first deal. For more detail, see how to land your first rent-to-rent deal.
What This Guide Covers
Why Use a Limited Company for Rent to Rent?
Most experienced rent to rent operators use a limited company rather than operating as a sole trader. There are five key reasons:
- HMO licence holder. You apply for HMO licences in your company’s name — giving your business a formal licensed identity that carries across multiple properties
- Landlord credibility. A company presenting a Company Let Agreement with a registered business name and company number is far more credible to landlords than an individual with no formal business structure
- Limited liability. Your personal assets are protected if the business faces legal claims or financial difficulties
- Tax efficiency. Corporation tax (19–25%) is typically lower than higher-rate income tax (40%). You can also choose when to extract profits as salary and dividends, managing your personal tax position
- Business asset. A limited company is a standalone asset that can be sold, transferred or brought into partnership. It is a more scalable structure for a growing portfolio
Setting Up Your Company — Step by Step
Choose Your Company Name
Check availability on the Companies House name search (gov.uk). Choose something professional that works for landlord-facing marketing. Register your preferred domain name at the same time.
Register at Companies House
Go to gov.uk/limited-company-formation. Cost: £12 online (usually done in 24 hours). You will need: company name, registered address (can be your home or accountant’s address), at least one director (you), and a share structure (typically 100 ordinary shares at £1 each). For more detail, see finding the right accountant.
Get Your Certificate of Incorporation
Companies House issues this digitally — keep it safe. It contains your company registration number (CRN) which you will use on all contracts, correspondence and licence applications.
Choose Your SIC Code
When registering, you will be asked for a Standard Industrial Classification (SIC) code. For rent to rent, SIC code 68209 (Other letting and operating of own or leased real estate) is commonly used, though your accountant may advise a different code depending on your specific model.
Register for Corporation Tax
HMRC must be notified of your new company within 3 months of starting to trade. Register via HMRC’s online service using your company registration number. You will receive a Unique Taxpayer Reference (UTR) for the company. For more detail, see how rent-to-rent tax works in the UK.
Open a Business Bank Account
Separate business banking is non-negotiable — never mix personal and business finances. See the next section for recommended banks. You will need your Companies House certificate, ID documents, and a business address.
Appoint an Accountant
Find an accountant who specialises in property businesses before your first deal — not after your first tax year. They will set up your bookkeeping system, advise on salary/dividend structure, and prepare your annual accounts and Corporation Tax return. For more detail, see how to handle HMRC for rent to rent.
Choosing the Right Company Name
Your company name is your brand — landlords will Google it, tenants will see it on their tenancy agreements, and councils will assess it on HMO licence applications. Choose something professional. For more detail, see our guide to rent-to-rent tenancy agreements.
✅ Good Name Formats
• [Your Name] Property Solutions Ltd
• [Your Area] Property Management Ltd
• [Your Name] Lettings Ltd
• [Name] Residential Ltd
Professional, easy to remember, clearly property-related
❌ Avoid
• Anything with “rent to rent” in the name — signals your strategy to landlords
• Generic names that are hard to remember
• Names that are too similar to existing companies
• Overly clever names that don’t communicate property
Total Setup Costs
💰 Limited Company Setup Costs
Ongoing Compliance Requirements
- Annual accounts — must be filed with Companies House every year (prepared by your accountant)
- Corporation Tax return — filed with HMRC annually (your accountant handles this)
- Confirmation statement — annual statement to Companies House confirming company details (£34 online)
- VAT returns — only if VAT-registered (most R2R operators are not)
- PAYE — if you pay yourself a salary through the company
- Director’s personal Self Assessment — if you receive salary, dividends or have other income
Frequently Asked Questions
Do I need a limited company to do rent to rent?
No — you can operate rent to rent as a sole trader without a limited company. However, a limited company provides liability protection, is more credible to landlords, allows you to hold HMO licences in the company name, and is typically more tax-efficient once your income becomes significant. Most operators who are serious about building a portfolio set up a limited company from the start rather than transitioning later. For more detail, see HMO licensing requirements.
How long does it take to set up a limited company?
Registering a limited company online at Companies House takes approximately 24 hours and costs £12. Opening a business bank account typically takes 1–5 working days depending on the bank. Total setup time from start to trading-ready is typically 1–2 weeks. This is one of the fastest and cheapest things you can do to professionalise your rent to rent business — do it before you approach your first landlord.
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