One of the most common questions we get asked is: "How much does it cost to set up a limited company in the UK?" The honest answer is — it depends on how you do it and what services you need. The Companies House online incorporation fee is £100 from 1 February 2026, but statutory fees can change and there are other costs to consider, both at the point of formation and on an ongoing annual basis.
This guide breaks down every cost in detail, so you can plan accordingly and understand which charges can change.
One-Time Formation Costs
These are the costs you'll encounter when registering your company. Most are optional or avoidable — but it's important to understand what each one covers.
| Cost Item | Typical Cost | Notes |
|---|---|---|
| Companies House fee (online) | £100 | Current official fee from 1 February 2026. |
| Companies House fee (paper) | £124 | Current official fee from 1 February 2026; check processing guidance before applying. |
| Formation agent fee | £0–£150 | Varies by provider. Some charge nothing; others charge up to £150 for premium packages. |
| Solicitor (bespoke incorporation) | £300–£1,500+ | Only needed for complex share structures, joint ventures, or investor-grade articles. |
| Bespoke Articles of Association | £200–£800 | Standard Model Articles are free. Bespoke versions are only needed for specific requirements. |
| Registered office address (first year) | £0–£120/yr | Required. Can be your home (free) or a professional service address. |
| Total via partner route | Check current fees | Any Tide offer is subject to current provider terms and eligibility. |
Tide partner offer explained: Sterling Formations is an official Tide partner. The £14.99 reimbursement and £25 reward are available only through Sterling’s Tide route. Adding £100 to the Tide account within 30 days may qualify an eligible applicant for the £25 reward, subject to Tide’s current fee, account, eligibility, and offer terms.
Annual Ongoing Costs
Formation is a one-time cost, but running a limited company involves recurring annual expenses. Understanding these helps you budget properly.
| Cost Item | Typical Annual Cost | Notes |
|---|---|---|
| Confirmation Statement | £50/yr | Filed with Companies House annually. Paper filing is £110. |
| Annual accounts filing | £0–£300+ | Micro-entity or dormant accounts can be filed for free using free software. Accountants may charge £150–£300+ for preparation. |
| Corporation Tax return (CT600) | £0–£1,000+ | Depends on complexity. Many small companies include this in an accountant package. Can be filed yourself using HMRC's free tools. |
| Accountant (full service) | £500–£2,000+/yr | A good accountant covers CT600, annual accounts, payroll, VAT, and director self-assessment. Costs vary by turnover and complexity. |
| Registered office address | £50–£150/yr | If using a professional service address rather than your home. |
| Business address (mail forwarding) | £50–£200/yr | Optional. Separate from registered office. Keeps your trading address professional. |
| PAYE administration | £100–£400/yr | If using a payroll bureau or accountant to run your monthly payroll. Free if you do it yourself via HMRC Basic PAYE Tools. |
| VAT returns (if registered) | £200–£600/yr | Often included in an accountant package. Free to file yourself via HMRC's VAT online portal. |
| Business bank account | £0–£15/mo | Some providers offer basic accounts without a monthly fee, but pricing, features, and eligibility vary. Check current terms. |
What's Included vs What Costs Extra
Included in basic formation
- Certificate of Incorporation
- Memorandum & Articles of Association
- Company Registration Number (CRN)
- Companies House WebFiling access
- First Confirmation Statement period
- Public register listing
Costs extra / purchased separately
- Registered office address service
- Business address (trading address)
- Accountancy & bookkeeping
- Payroll administration
- VAT registration & return filing
- Director self-assessment tax returns
- Business insurance
What Does It Really Cost to Run a Limited Company?
For a straightforward owner-managed limited company with modest turnover, the realistic annual running cost is:
A limited company can have different tax and administration costs from a sole-trader structure, but the outcome depends on profit, salary, dividends, expenses, pension planning, tax year, and personal circumstances. Use current HMRC guidance and qualified advice rather than assuming incorporation will pay for itself.
Related Resources
Statutory fee amounts shown here are sourced from the Companies House fee table, effective 1 February 2026. Check the official fee table.
Ready to form your company?
Register your UK limited company with a clear view of the filing fee, provider charges, and any current partner terms. Eligibility and approval requirements apply to third-party offers.
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