6 Steps to SPV Company Formation
A Step-by-Step Guide
SPV company formation is one of the most popular ways UK investors hold Buy-to-Let property. Done properly, an SPV is mortgage-ready from day one, structured for tax efficiency, and clean in the eyes of lenders. Done carelessly, it can cost you time, mortgage options, and money to fix later.
Here’s how to do it right in simple steps:
1. Choose Your Company Name
Start by checking whether your desired company name is available. It can’t be identical or too similar to an existing registered company, and it can’t contain “sensitive” words without permission from the relevant authority.
A few practical tips:
- Keep it simple and professional
- Avoid tying the name too tightly to one property or postcode, as your portfolio may grow beyond it
- Check that a matching domain name is available if you plan to build any online presence
2. Get the SIC Code Right
This is the step generic formation sites skip, and it’s the one that matters most for property. Getting this right early is one of the most overlooked parts of SPV company formation.
An SPV is a limited company set up for the single purpose of holding and letting property. Buy-to-Let lenders strongly prefer, and often require, a “clean” SPV with no trading history and the correct property-specific SIC code.
The relevant codes are:
- 68209 – Other letting and operating of own or leased real estate. This is the primary code most lenders want to see for a Buy-to-Let SPV holding property for rental income.
- 68100 – Buying and selling of own real estate. Used for property trading or flipping. Many Buy-to-Let lenders treat a company with only this code as a higher-risk trading company, and some will decline the mortgage on that basis.
- 68320 – Management of real estate on a fee or contract basis. For managing property on behalf of others.
For a standard Buy-to-Let SPV, 68209 as your primary code is the safest choice. Companies House lets you register up to four SIC codes, so you can add others if you genuinely carry out those activities but keep 68209 as the primary. Using the wrong code is one of the most common reasons an SPV gets rejected for a Buy-to-Let mortgage, so it’s worth getting right at formation.
3. Choose the Right Package
Pick a formation package that matches where you are in your journey rather than defaulting to the cheapest option. We offer 4 standard packages and look at our comparison table to help you choose. Prices start from £12.99 to set up and register your Buy-to-Let SPV limited company online. As a rough guide:
- New investors setting up their first SPV usually need core formation plus the right SIC codes and a certificate of incorporation
- Growing landlords often want a registered office and director service address to keep their home address off the public record, plus tax advice
- Serious portfolio builders may need bespoke articles of association and multiple share classes for planning and family ownership
4. Sort Your Structure & Shares
Before you file, decide how ownership is split. Even a straightforward SPV formation benefits from a bit of forethought here:
- Shareholders & Share Split – Who owns what percentage.
- Share Classes – Alphabet shares (A, B, C, etc.) allow different dividend and voting rights, useful for spouses or family members.
- Directors & People with Significant Control (PSCs) – Anyone owning or controlling more than 25% must be recorded.
If you’re unsure, this is worth a conversation before incorporating, because changing it afterward is more involved than getting it right the first time.
5. Verify Your Identity (Now a Legal Requirement)
Identity verification with Companies House has been a legal requirement for company directors and PSCs since 18 November 2025. For a brand-new company, the first directors and PSCs must verify their identity before the company can be incorporated, so this is a step to sort early, not later.
You verify once, through GOV.UK One Login (you’ll need a passport or UK driving licence) or via an Authorised Corporate Service Provider. You then receive a personal code that links your verified identity to the company. Have your ID ready before you start. Some formation packages include an identity verification service to handle this for you.
6. Provide Your Details, Pay & Submit
Finally, complete the incorporation details. Registered office address (must be a UK address), director and shareholder details, occupation, date of birth, nationality, and the number and value of shares issued. Then proceed to checkout and pay. This is also where you can add extras like a registered office address, VAT registration, or a business bank account referral.
Once submitted, Companies House usually processes new incorporations quickly, and you’ll receive digital copies of your certificate of incorporation and supporting documents by email. You’re then free to trade.
What Happens After You Complete SPV Company Formation?
Forming the company is the start, not the finish. To stay compliant, you’ll need to file confirmation statements, keep company records up to date, and file annual accounts and a corporation tax return, even if the company is dormant in its first year. Many investors pair their SPV with a property accountant and property management software from day one so the admin never piles up.