How Much Does It Cost To Register a Business in the UK?

Registering a company in the UK incurs various initial costs, including the Companies House registration fee, which starts at £50 for online applications. Additional expenses may arise from compliance and operational services, depending on your company structure – sole traders generally face lower costs than limited companies. Overall, understanding these registration fees and selecting the right service for your needs is vital for effective budgeting.

Companies House registration fee

The Companies House registration fee is a necessary expense when incorporating a company in the UK. For those opting for online incorporation through the Companies House Web Incorporation Service, the fee is £50.

For those who choose to register their new company or an association via paper submission, the fee increases to £71. It’s important to note that a comprehensive list of Companies House fees can be found on the GOV.UK website, which provides detailed information on all applicable charges. Knowing these Companies House fees, including additional costs for SIC code classifications, helps in budgeting and ensuring a smooth company incorporation process.

Additional service fees

Beyond the Companies House registration fee, there are additional service fees that businesses must consider to ensure compliance with UK regulations. For instance, same day registration incurs a fee of £78, which is essential for businesses that expect to launch quickly or secure their official status urgently.

New businesses should budget for these additional government fees to avoid compliance issues and ensure smooth operations. Though seemingly minor, these expenses significantly impact the overall cost of registration. One common service is a registered office address, which allows businesses to keep their home address unavailable on the public record for added privacy. This service often incurs an annual fee, adding to the initial setup costs but providing added security and professionalism. Additionally, businesses should remember that any fee will be included on the public register, ensuring transparency and accessibility for legal records.

Choosing the right registration plan is crucial. Osome provides different plans catering to varying needs based on the company owner’s residency status and required service level. The Basic and All-in-One plans for residents include services such as company registration and filing the confirmation statement. The Foreigners' Plan meets non-UK residents’ needs, assisting with compliance and setting up a UK establishment for business.

Each plan has unique features and a fee, so choose one that aligns with your company goals and compliance requirements, including the filing of an annual confirmation statement.

Basic plan for residents

The Basic plan for residents is designed for those who need any essential service and documentation for company registration, including the setup of a community interest company. Priced at £50+ VAT, this plan includes the setup of a limited company and all the necessary legal paperwork required for incorporation.

All-in-one plan for residents

For comprehensive compliance services, the All-in-one plan for residents is ideal. It includes extensive services to ensure all legal requirements are met, from document preparation to submission.

The All-in-one plan includes necessary documentation and ongoing compliance support, making it suitable for businesses seeking ease of access and legal assurance. It streamlines registration, allowing entrepreneurs to focus on growth. The price is £289+ VAT.

Registration plan for foreigners

Non-UK residents looking to register an overseas company in the UK can opt for the registration plan for foreigners, which is priced at £299+ VAT. This plan offers tailored services to help overseas companies and other overseas entities navigate UK regulations and ensure compliance, similar to the All-in-one plan for residents.

Many agents provide online management tools that allow clients to oversee their overseas company details and filings conveniently. This formation service often includes additional company services and third-party software, making it a comprehensive solution for overseas entities and overseas companies incorporating international entrepreneurs.

The cost of company registration in the UK is influenced by the type of business, registration method, and additional services. Knowing these factors is crucial for budgeting and ensuring a smooth process.

Each factor plays a critical role in determining overall expenses, especially for setting up an overseas company.

Business type

The type of business significantly impacts registration costs, as does choosing an alternative name for branding purposes or other unique identifiers. A sole trader doesn’t need to register with Companies House, thus avoiding associated fees but must report business income, pay income tax, and contribute to National Insurance.

On the other hand, limited companies must file specific company incorporation documents with their corporate name, leading to higher registration fees. Setting up a limited company involves choosing a company name and appointing directors and shareholders, all of which contribute to the overall expenses.

Method of registration

The registration method affects what you'll pay and processing time. Online registration is generally cheaper and faster, with a fee of £50, while postal registration incurs higher company registration fees.

Same-day registration is available for a higher fee for expedited processing. Choosing the right method can streamline the process and reduce fee payments.

Additional services

Businesses can opt for additional services to enhance their operations and compliance. For example, using a formation agent can increase company registration fees but provide valuable assistance during the process. Optional services like virtual office addresses or digital copies of essential documents can enhance a business’s professional image and provide additional administrative support.

Knowing what you'll pay for optional services and the role of formation agents is crucial for effective budgeting. Companies House fees are based on cost recovery principles, covering only service delivery fees.

After initial registration, businesses must budget for ongoing costs to ensure compliance and smooth operations. Recurring expenses include the Confirmation Statement, registered business address, the requirement to file annual accounts independently or through accounting services, as well as fees for keeping your UK establishment and accounts in good standing.

Annual Confirmation Statement

Submitting a Confirmation Statement to Companies House is mandatory for all companies. This statement must be filed annually at a fee of £34 online and £62 by post.

The confirmation statement ensures that Companies House has up-to-date company information on the public register and allows businesses to correct any changes to the corporate name, alternative name, or other essential details, ensuring accuracy.

Registered office address

Maintaining a registered office address is a legal requirement for all UK companies. The annual cost is typically £100/y if a company lacks its own suitable location. This company address must be a physical UK location for official correspondence, which makes a personal address unavailable for registration use.

Registered office address services often include extra features, which can benefit businesses looking to streamline their administrative processes.

Accounting and tax services

Accounting and tax services provided by Osome are essential for managing accounts in compliance with UK regulations, ensuring that businesses accurately file annual accounts and meet all reporting standards. Starting at £71/m per month, these services help keep accurate financial records, prepare annual accounts, and file corporation tax returns, ensuring that your company remains compliant with all necessary legal requirements.

The current corporation tax rate for limited companies in the UK is between 19% and 25%, making effective financial management and tax compliance crucial.

Registering a company online is convenient and cost-effective. The standard procedure involves submitting company details, such as the company name and registered office address, through the Companies House website.

To ensure a smooth registration process, gather all required company information beforehand, complete the online application accurately, and promptly receive your company documents.

Gathering required information

Gathering necessary information is a critical first step. Required details include the business structure, address, and identification of directors and shareholders. Having this information ready streamlines registration and helps avoid delays.

Having correct and complete information before starting the registration process saves time and reduces errors, ensuring successful and efficient company registration.

Completing the online application

Completing the online application involves filling out detailed forms about your company. Double-check all details before submitting to avoid mistakes that could delay the process. You need at least one shareholder or guarantor, who can also serve as a company director.

Formation agents provide expert guidance, ensuring forms are completed accurately and minimising rejection risk. Their expertise is invaluable, especially for first-time business owners.

Receiving your company documents

After registration, Companies House issues your company documents. These can be received electronically through email, including a PDF of the incorporation certificate. Electronic delivery is generally faster and more convenient than postal delivery.

Receiving your company documents in a timely and secure manner is crucial for legal compliance and business operations. Keep these documents safe, as they are essential for opening a business bank account and other administrative tasks.