The short answer
Registering a limited company directly with Companies House costs £100 online, and the company is normally incorporated within 24 hours. Other costs to budget for include a registered office address, a business bank account, accountancy fees, software and any optional extras such as a company seal or share certificates.
Checked 26 October 2026. Rates for 2026/27.Key facts
| Fact | Detail |
|---|---|
| Companies House fee (online) | £100 |
| Typical time to incorporate | Within 24 hours |
| Registered office address service | £0 to £100 a year |
| Accountant (fixed fee) | From £45.83 + VAT a month |
| Confirmation statement fee | £50 online |
The official cost of incorporation
The government fee to incorporate a company online with Companies House is £100, and many applications are approved within a day. The paper application is more expensive and slower, so almost everyone applies online. The fee covers the registration itself and the certificate of incorporation, which you can download.
You do not need a formation agent, though many people use one. Agents charge a fee, often between £20 and £100, to complete the filing and bundle extras such as a registered office address, mail forwarding or a printed certificate. If you want to keep costs low, applying directly is straightforward, provided you have the information ready.
What you need to provide
To register a company, you need to decide the company name, check that it is available and complies with the naming rules, and choose a registered office address in the UK. You also need at least one director who is 16 or older, details of the shareholders, the number and value of shares, and an SIC code describing the company’s activity. Each director and person with significant control will need to verify their identity under the new Companies House rules.
You will also need to agree the company’s articles of association. Most people use the standard model articles. If you have several shareholders, consider a bespoke shareholders’ agreement, which carries legal fees but can prevent disputes later.
Registered office and address costs
Every company must have a registered office address in the UK, where official post can be delivered. Many directors use their home address, which is free but becomes public on the Companies House register unless certain protections apply. Others use a registered office service, which costs between £0 and £100 a year, and keeps their home address private.
If you need a physical business address for meetings or a virtual office with phone answering, expect to pay more. Choose the option that suits how you work, and remember you can change the registered office later by filing a form.
Business bank account and payment costs
Companies need a business bank account, which keeps company and personal money separate. Many high street and challenger banks offer free business accounts, usually for the first year, and then charge a monthly fee, typically between £5 and £20. Some charge per transaction. Compare fees, integration with accounting software and card payment charges.
Opening a bank account can take several days, because the bank must verify the directors and the company. Start the application as soon as you have your certificate of incorporation.
Accountant and software costs
You are legally required to file annual accounts, a Corporation Tax return and a confirmation statement, and your director’s personal tax return. An accountant who looks after these for a fixed monthly fee costs from £45.83 plus VAT a month with our Essential package, and more for bookkeeping, VAT and payroll. Software costs are extra if not included, typically between £10 and £40 a month.
The right package depends on the company’s turnover, the number of transactions and whether you are VAT registered or have employees. A fixed fee makes budgeting easier than paying by the hour.
Other costs you might not expect
Beyond the main costs, some others come up in the first year.
Business insurance, such as professional indemnity or public liability, is often required by clients.
Domain name, website and email costs.
Professional memberships and licences for regulated activities.
Data protection registration with the ICO if you handle personal data, which costs from £40 a year.
Trademark registration if your brand matters, from £170.
Payroll software if you employ staff or pay yourself a salary.
Add these to your budget so there are no surprises in the first year.
A realistic first-year budget
For a simple one-director service company, a realistic first-year budget might look like this. Incorporation is £100. A registered office service is around £50. Accountancy for the year is from about £550. Business bank charges are around £60 once the free period ends. Software, if not included, costs about £200. Insurance may be £150. The total is roughly £1,000 to £1,200, which is far lower than many people expect.
Larger companies, those with employees, stock or complex VAT needs, will spend more. The key point is that incorporating itself is cheap. The ongoing costs of compliance are the main ones, which is why a clear fixed fee is valuable.
The timeline from idea to trading
The process can be quick if you prepare. Choosing a name and gathering information takes a day or two. Incorporation takes up to 24 hours. Identity verification, if not already done, adds a short delay. Registering for Corporation Tax happens within three months of starting to trade. Opening a bank account takes around a week. VAT and PAYE registration can be done when needed.
In total, most people can go from deciding to start a company to trading within one to two weeks. Registering for Corporation Tax, choosing an accounting date and booking an accountant should be part of the early steps.
What you do not need to pay for
Several services that formation agents market are optional. You do not need to buy a printed certificate, a company seal or a minute book, as Companies House provides a digital certificate and the law no longer requires a seal. Share certificates can be created for free from templates. You also do not need to pay a third party to open the bank account, because banks open them directly.
Be cautious of packages that bundle many extras at a high price. Decide which services you actually need, and compare the cost of each against doing it yourself. A basic incorporation plus a good accountant is usually all a new one-director company needs.
Annual costs once the company is running
After the first year, regular costs continue. These include the Companies House confirmation statement fee of £50 a year online, accountancy fees for accounts and tax returns, bookkeeping software, bank charges, insurance and any registered office service. If you are VAT-registered or employ staff, payroll and VAT costs may add to the total.
Make sure your budget includes a reserve for Corporation Tax, which is due nine months and one day after the year end. Planning for the tax bill is as important as paying the incorporation fee, because it is the largest cost for a profitable company.
The bottom line
Registering a limited company directly with Companies House costs £100 online, and the company is normally incorporated within 24 hours. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.
Frequently asked questions
How much does it cost to register a limited company?
The Companies House fee is £100 online. Formation agents and registered office services cost extra, but they are optional.
How long does it take to set up a limited company?
Online incorporation is usually completed within 24 hours, though it can take longer if Companies House needs to check the application.
Do I need an accountant to set up a limited company?
No, but an accountant can help you choose the right structure, set up payroll, register for tax and VAT, and manage your deadlines from the start.
Do I need a business bank account?
Yes in practice. A limited company is a separate legal entity, so you should keep its money separate from your own, and a business account makes bookkeeping and tax simpler.
Can I use my home address for the registered office?
Yes, though it will appear on the public register unless you use a registered office service or apply for suppression in limited cases.
Is it cheaper to form a limited company myself?
Yes, applying directly to Companies House costs £100, while agents charge extra. However, an agent or accountant can save you time and avoid mistakes, which may be worth the fee.
Do I need a solicitor to set up a limited company?
No, but a solicitor can draft a shareholders’ agreement or bespoke articles if there are several shareholders. For a single director, the standard model articles usually suffice.
This article is general information, not personal tax or financial advice. Rules and rates change, so check GOV.UK or speak to an accountant about your circumstances. Rates shown are for 2026/27, last checked November 2026.