How Much Does It Cost To Register a Business in the UK?
- Published: 13 November 2024
- 11 min read
- Starting a Company
Heather Cameron
Business Writer
Heather believes in the power of great storytelling and is here to craft compelling copy that informs and inspires readers. With an extensive background in digital marketing, she has experience writing for various industries, from finance to travel. As Osome’s copywriter, Heather creates content that empowers entrepreneurs and small business owners to boost their business with expert guidance, helpful accounting tips and insights into the latest fintech trends.
Registering a business with Companies House in the UK involves several fee options depending on the incorporation method. As of May 2024, the standard fee for online registration is £50. If you require same-day registration, the fee increases to £78. Alternatively, if you prefer to submit your application by paper, you'll need to pay £71. Fees vary for any Limited Liability Partnership (LLP), overseas entities, and specialised registrations like a community interest company. Any other potential fee depends on the services you require, such as an application to make an address unavailable for public inspection.
Key Takeaways
- The initial filing fee of registering a business in the UK varies based on the services selected, starting as low as £50 for online registration directly with Companies House and other fees like filing a confirmation statement.
- Different business structures, such as a sole trader, limited company or limited liability partnership, do affect registration costs and requirements, influencing budget allocation.
- Choosing the appropriate registration plan is essential; options vary for residents and non-residents, with different pricing and business activities tailored to specific business needs.
Understanding the Cost of Business Registration in the UK
The cost of registering a business in the UK ranges from £50 to £71, depending on the registration method. Online registration is faster and cheaper at £50, while postal applications require you to pay a fee of £71 and take longer. You may also choose third-party software or accountants, which can add to the filing fee but often provide additional services. Thorough planning for any fee and other requirements, such as corporation tax registration and maintaining annual accounts, helps ensure a smooth setup process.
Various registration plans cater to both residents and non-residents, each with distinct services and costs. Choosing a plan that aligns with your specific needs and business goals is crucial. For a seamless experience, consider Osome's tailored registration services, catering to both residents and non-residents with distinct plans.
Different company structures, such as sole traders, limited companies and LLPs, also influence the total fee of registration. Registering as a sole trader involves fewer fees, while a limited company or limited partnership requires more documentation and due diligence for compliance with Companies House regulations. Understanding these nuances and filing fees helps you allocate resources effectively during the registration process.
Initial Costs for Registering 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
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.
Visit our pricing page to explore how we can support your journey and ensure a smooth setup. With competitive pricing and various plans to suit your needs, you can choose the right option for your business structure.
Factors Affecting the Business Registration Costs
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.
Ongoing Costs After Registration
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.
Step-by-Step Guide to Registering a Company Online
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.
Setting Up a Business Bank Account
Setting up a business bank account is vital for managing your company’s finances. You can open an account online or in person at a traditional bank, each with its own advantages and disadvantages.
Choosing the right bank
Selecting the right bank involves considering factors like fees, features, and convenience. Digital banks like Airwallex and Wise are popular for their user-friendly features and lower fee payments.
These digital options offer a seamless banking experience, making them attractive for modern businesses seeking efficiency and savings.
Required documentation
To open a business bank account, the Certificate of Incorporation, which proves your company is registered and recognised by Companies House, is essential. Most documents are sent electronically after registration, but you can request physical copies if needed.
Having all the required documentation ready facilitates a smoother and quicker account setup process.
Online vs. in-person account setup
Online banking often provides quicker account setup compared to traditional methods. FinTech solutions can approve business account applications in as little as two hours, while traditional banks may take from four weeks to three months.
While online setups offer convenience and speed, in-person setups may provide more personalised service. Weigh the pros and cons of each method to choose the best option for your company's needs.
Using a Company Formation Service
Using a company formation service can streamline the registration process. These services provide extensive compliance support, ensuring all legal obligations are met, and allowing entrepreneurs to focus on growing their company.
The following subsections explore the advantages of company formation agents and compare different prices and packages available.
Advantages of formation agents
Formation agents can expedite the registration process, often completing it within 24 hours, and ensure that structures like limited liability companies protect personal assets from business liabilities. They reduce rejection chances by ensuring all information is accurate through a pre-submission review. Additionally, they provide a more comprehensive set of incorporation documents than what is received when you register directly with Companies House.
Formation agents handle various company structures, including a private limited company, limited liability partnership (LLP), and overseas company, offering flexibility and expertise to suit different needs.
Comparing prices and packages
Comparing formation service packages helps business owners choose the most suitable option based on their needs and budget. The Basic plan for residents costs £50+ VAT and includes essential services like company registration and necessary documentation.
The All-in-one plan for residents offers comprehensive compliance services beyond basic registration, ensuring all legal requirements are met. For non-UK residents, the registration plan costs £289+ VAT and includes tailored services suited to international business needs. Contact us to find the right package for your business.
Summary
Understanding the costs associated with business registration in the UK is crucial for successful company incorporation. From registration fees, filing of the confirmation statement, and ongoing expenses to choosing the right registration plan, each step requires careful consideration and planning. By following this comprehensive guide, you can navigate the financial aspects of starting an overseas company with confidence and focus on growing your enterprise. Get started today and take the first step towards realising your professional dreams.
FAQ
What is the cost to register a limited company for residents using the Basic Osome plan?
The fee to register a limited company by Osome using the Basic plan is £50 plus VAT.
What is the cost of the Confirmation Statement?
The fee paid for the Confirmation Statement is £100, which is included in the Basic Osome plan as an additional expense.
What is the annual cost for a registered London office address?
The annual fee for a registered London office address is £100/y, which is included in the Basic Osome plan as an additional expense. This provides a professional company presence without the need for physical office space.
How much does it cost for foreigners to register a limited company?
Foreigners can register a limited company for £299 plus VAT. This fee typically covers the necessary registration services.
What is the fee for VAT registration?
The fee for registering VAT is £50.
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