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Basil McCrea and John McCallister said their party will be "confident, progressive and pro-union".
BBC: Basil McCrea and John McCallister set up new unionist party
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Since taking over, Mr Nesbitt has also disciplined two other high profile UUP MLAs - John McCallister and Basil McCrea.
BBC: Fred Cobain leaves UUP and joins DUP
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Basil McCrea and John McCallister both resigned from the UUP last month, objected to their party's electoral pact with the DUP.
BBC: Sinn Fein's Francie Molloy wins Mid Ulster by-election
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On Thursday, Basil McCrea and John McCalliser quit the UUP over its decision to support a unionist unity candidate in the Mid-Ulster by-election.
BBC: Mike Nesbitt does not rule out more joint candidates
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As I headed through the swing doors, a new party - aka Basil McCrea and John McCallister - was coming in the opposite direction.
BBC: It's a love 'n hate thing for the new gang of two
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The idea for creating an opposition is also the central plank of a new party being formed by former Ulster Unionists Basil McCrea and John McCallister.
BBC: Foyle & West
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The decision by the UUP to support a single unity candidate led two senior members of the party, Basil McCrea and John McCallister, to announce their resignations.
BBC: Mike Nesbitt does not rule out more joint candidates
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Earlier, Alliance leader David Ford requested an immediate recall of the assembly, which was backed by the SDLP's Pat Ramsey and two Ulster Unionist assembly members, Basil McCrea and John McCallister.
BBC: Northern Ireland Assembly session over flag disturbances
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John, Sine Qua Non and McCrea, are struggling to prove its true worth.
FORBES: Grape Juice
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Basil McCrea, a keen supporter of John McCallister and a former leadership candidate in 2010, remains in place.
BBC: No shocks in Nesbitt reshuffle
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Lagan Valley MLA Basil McCrea has said it is likely that he and John McCallister will set up a new party to challenge the DUP and the UUP.
BBC: Basil McCrea