How Much Does It Cost to Form a Limited Company

Starting a limited company in the UK is one of the most affordable ways to structure a business. But while the process is simple, the actual cost depends on how you choose to register, what extras you need, and whether you handle the setup yourself or use a third party.

This article breaks down the real cost of forming a limited company in 2025, including the official Companies House fees, optional services and extra costs to keep in mind as you get started.

What is the official cost to register a limited company?

As of May 2024, the UK government increased the cost of company registration through Companies House. The current fees are:

• £50 for an online application submitted through GOV.UK

• £71 for a postal application using Form IN01

This is a one-time fee paid at the point of incorporation. It covers the creation of your company, the issue of your certificate of incorporation, and entry onto the public register of companies.

Same-day registration

Same-day incorporation is still available through formation agents or software providers. The fee for this service is typically £100, and your application must be submitted before 3pm on a working day.

What about using a formation agent?

Company formation agents are third-party services that handle the registration process on your behalf. They often offer bundled packages with additional features, such as:

• A registered office address

• A director’s service address

• Printed or digital incorporation documents

• Filing reminders and compliance support

• VAT or PAYE registration assistance

• Business bank account introductions

Prices for these packages usually range from £30 to £150, depending on the provider and services included. While more expensive than registering directly through GOV.UK, they are convenient if you want extra help or do not want to use your personal address publicly.

Are there any ongoing costs?

Yes, although the initial registration is a one-off cost, there are ongoing requirements that come with running a limited company. These include:

• Confirmation Statement: Filed annually with Companies House. The filing fee is £34 if done online or £62 by post.

• Corporation Tax filing: Free to submit, but you may incur accounting costs.

• Accountant fees: Optional but common. Expect to pay £500 to £1,500 per year depending on complexity.

• Registered office service (if not using your own address): Usually £30 to £150 per year.

• Business bank account: Most banks offer free business banking for 12 to 24 months, after which monthly fees apply.

• Software and compliance tools: Cloud accounting software may cost £10 to £30 per month.

What is included in the GOV.UK fee?

The £50 Companies House fee includes:

• Company registration using the Model Articles of Association

• Certificate of incorporation

• Allocation of a company number

• Listing on the public register

It does not include registration for Corporation Tax or any tax advice. After your company is formed, you must register separately with HMRC within three months of starting business activity.

Can I claim the setup cost as a business expense?

Yes. The cost of forming your limited company is a legitimate pre-trading expense. You can claim it as a deduction when calculating your corporation tax, provided the cost was incurred wholly and exclusively for the business.

Real-world example

Emma sets up a marketing consultancy through GOV.UK. She pays the £50 fee online and receives her certificate of incorporation within 24 hours. She later pays £34 to file her annual confirmation statement and £150 for a registered office address so her personal home address is not listed on the public register. She chooses to manage her own bookkeeping and accounting during the first year to keep costs low.

Final thoughts

Forming a limited company in the UK is a cost-effective and accessible process. The official registration fee is currently £50 when applying online through GOV.UK, but the total cost can increase if you use additional services such as a registered office, accountant or formation agent.

While it is possible to keep things simple and low-cost, it is important to factor in ongoing compliance responsibilities and decide whether you want professional support. Understanding the full picture from day one will help you start your company with confidence and clarity.