How Much Does it Cost to Set Up a Limited Company?

Registering a limited company costs £100 online with Companies House, or £124 by post. That's the only fee you're legally required to pay, though most founders end up budgeting for a few optional extras too, from legal templates to an accountant.

Key Takeaways

• Company registration costs £100 online or £124 by post, a one-off fee paid directly to Companies House.
• Formation agents typically start from around £105, often bundling in extras like a registered office address or Confirmation Statement filing.
• Ongoing compliance costs include your annual Confirmation Statement (£50 online, £110 by post) and Annual Accounts, whether filed yourself or through an accountant.
• Accountancy support for ongoing bookkeeping and tax filing typically runs from £20 a month for smaller businesses, up to £800–£1,500 a year for fuller services.
• Optional extras like insurance, a business bank account, or office space vary widely, and aren't all legally required.

What Are the Registration Fees for Setting Up a Limited Company?

Your Companies House registration fee is the first cost you'll hit, and for most people, the only mandatory one. Online registration costs £100 and is by far the more popular route, since applications are often processed within 24 hours, depending on volume at Companies House.

Postal applications cost £124 and take considerably longer, often up to 10 days, filed using the IN01 form alongside a cheque. Either way, this fee is one-off, paid once at registration.

What Legal and Administrative Costs Are Involved?

If you're forming a company directly rather than through a formation agent, you'll need to prepare your own Memorandum and Articles of Association, the documents setting out your company's structure and rules. Companies House provides a free template for postal applications, and most online formation services generate these automatically as part of registration.

If your company's structure is more complex, or you'd rather have a solicitor draft bespoke versions, legal fees for this typically run from £100 to £200, occasionally higher depending on complexity.

What Do Formation Agents Charge?

Formation agents handle the registration and paperwork on your behalf, and fees typically start from around £105. Packages usually scale up from a straightforward registration-only service to fuller bundles including a registered office address, Confirmation Statement filing, or support connecting with a business bank account.

For most founders, this is genuinely good value. You get your company formed properly the first time, without needing to learn the finer points of Companies House filing rules yourself, and the bundled extras often work out cheaper than buying each service separately later. Our company formation packages include the £100 Companies House fee as standard, so you're covered from the moment you register. And for those who have formed multiple companies, our online portal allows the account holder of these companies to manage them a lot easier.

Do I Need an Accountant, and What Does One Cost?

Not legally, but many founders find it worthwhile. Ongoing accountancy support, covering bookkeeping, tax filing, and annual accounts preparation, typically costs £800 to £1,500 a year for a fuller service, or from around £20 a month for smaller businesses needing more basic support.

Costs scale with your company's complexity: more employees, more transactions, or a highly regulated sector all tend to push the fee up. Beyond compliance, a good accountant can also help with tax efficiency and financial forecasting, which is worth weighing against the cost.

What Other Costs Might Come Up?

A few additional costs depend entirely on how your business actually operates:

• Business bank account: many are free, though some charge £5 to £10 a month for extra features like forecasting tools or a dedicated advisor.
• Insurance: not always a legal requirement, but often worth having regardless. Costs typically range from £100 to £500 a year, and some industries, hairdressing and other public-facing trades, for example, do require specific cover like public liability insurance.
• Office space: from around £50 a month for a virtual office to £1,000 or more for commercial premises, depending on location and size.

Always confirm current pricing directly with your chosen provider, since these figures vary and change over time.

What Ongoing Compliance Costs Should I Budget For?

A few filings are required every year to keep your company compliant, and missing them brings real consequences, including fines or, in serious cases, being struck off the register.

• Confirmation Statement: £50 for digital filing, £110 by post, due annually.
• Annual Accounts: cost depends on whether you prepare them yourself or use an accountant.
• Statutory records maintenance: keeping your register of shareholders and other company records up to date, sometimes handled by an accountant or administrator for a monthly fee.

Why Form Your Company With Companies MadeSimple?

Cutting corners on formation, skipping a template here, handling a filing yourself there, can save a small amount upfront, but it usually costs more in time, and sometimes in mistakes that delay your registration. A properly bundled package tends to work out better value in practice, not just in convenience.

Our packages include the £100 Companies House fee as standard, along with the documents and support you need to get registered correctly the first time. Many also bundle in genuinely useful extras, a registered office address, Confirmation Statement filing, or help setting up a business bank account, that would otherwise cost more to buy separately later. We've built our packages around what founders actually end up needing, not just the bare minimum to register.

FAQs

How much does it cost to register a limited company with Companies House?

£100 online, or £124 by post. Online registration is faster and the more common route.

What are the costs beyond registration?

Optional legal fees for drafting your Memorandum and Articles of Association, typically £100 to £200, though free templates are available if you'd rather not pay for this.

How much do formation agents charge?

Typically from around £105, often including extras like a registered office address or Confirmation Statement filing as part of the package.

Do I need an accountant when setting up a limited company?

Not legally, but many founders use one for ongoing bookkeeping and tax support. Costs range from around £20 a month for basic support up to £800–£1,500 a year for fuller services.

What ongoing costs should I expect after forming my company?

An annual Confirmation Statement (£50 online, £110 by post), Annual Accounts, and any accountancy or admin support you choose to use.

Can I reduce the cost of forming a company?

Handling everything yourself can save a small amount upfront, though a bundled package often works out better value once you factor in the extras included, and reduces the risk of a mistake delaying your registration.

This article is for general information only and does not constitute legal or financial advice. Fees and costs mentioned can change, so it's worth confirming current pricing directly with Companies House or your chosen provider.