How Much Does It Cost to Set Up a Limited Company in the UK?

It costs £100 to register a limited company online with Companies House.

For a straightforward company, that can be the only unavoidable cost of incorporation.

But depending on how you set up and run your company, you might also choose to pay for things like a registered office address, company formation service, accountant, business bank account or insurance.

Here's what you actually need to budget for.

Limited company setup costs at a glance

For most founders setting up a simple private company limited by shares, the £100 Companies House fee is the starting point.

Companies House registration: £100

Every limited company needs to be incorporated with Companies House.

As of September 2026, Companies House charges £100 for standard digital incorporation. Online applications are usually registered within 24 hours, although more complex applications or those requiring additional checks can take longer.

If you register using the paper IN01 form, the fee is £124. Companies House also offers a £156 same-day digital incorporation service.

For most new founders, standard digital incorporation is the relevant option.

How to Register a Limited Company in the UK

Do company formation services cost extra?

They can.

You can register a straightforward company yourself through Companies House, or use a company formation provider to help you through the process.

Formation providers charge in different ways. Some add their own formation fee. Others bundle incorporation with services such as a registered office, company secretarial support or business banking introductions.

FOUNDRS doesn't add a fee for forming your company. You pay the £100 Companies House incorporation fee.

The FOUNDRS incorporation agent guides you through decisions including your company name, registered address, directors, shareholders, share structure and SIC code before your application is filed with Companies House.

FOUNDRS is a Companies House Authorised Corporate Service Provider (ACSP) and is supervised by HMRC for anti-money laundering purposes.

Do I need to pay for a registered office?

Not necessarily.

Every limited company needs a registered office address, but that doesn't mean you have to pay for one.

You can use your home address if it meets Companies House requirements. However, your company's registered office is displayed on the public Companies House register.

If you don't want your home address to be publicly searchable, you can use an appropriate alternative, such as an accountant's address or a registered office service.

FOUNDRS offers a London registered office address, with company correspondence received and scanned digitally.

That is an additional service rather than part of the £100 Companies House incorporation fee.

Registered Office Address: What It Is and What Address You Can Use

Do I need to pay an accountant to set up a limited company?

No.

There's no general requirement to hire an accountant simply to register a straightforward limited company.

You might choose to use one if your circumstances are more complicated — for example, if you're setting up an unusual ownership structure, have specific tax considerations or want advice about how to pay yourself.

Once your company starts trading, you'll also need to maintain accounting records and deal with its tax and filing obligations. Whether you manage those yourself or use an accountant is a separate decision from incorporating the company.

Accounting Software vs Hiring an Accountant: Which Do You Need?

When Do Founders Need an Accountant?

Do I need to pay for a business bank account?

You'll want to keep your limited company's money separate from your personal finances.

Business bank accounts vary considerably. Some providers offer free accounts or introductory periods, while others charge monthly fees or transaction fees.

So don't automatically add a large banking cost to your company formation budget. Compare the account based on how you'll actually use it.

Do You Really Need a Business Bank Account?

What about business insurance?

Insurance isn't part of the cost of incorporating a company, but it can become an early business expense.

The cover you need depends on what your business does, whether you employ anybody, where you work and the risks involved.

Some types of insurance are legally required in particular circumstances, while others are optional protection against business risks.

Business insurance: what cover does your company need?

Are there any other costs when starting a limited company?

Potential costs can include:

• Domain name and website

• Accounting or bookkeeping software

• Professional advice

• Licences or permits

• Business insurance

• Registered office or mail handling

• Business banking

• Equipment

• Trademarks or other intellectual property protection

These aren't Companies House formation costs. They're costs that may arise from actually starting and operating your particular business.

You don't need to buy a giant “company formation package” containing services you don't need just because you've decided to incorporate.

Is there an annual fee for having a limited company?

There isn't a single annual Companies House membership fee just for keeping a company open.

There are, however, ongoing costs and filing obligations.

For example, companies generally need to submit a confirmation statement at least once every 12 months. As of September 2026, the digital Companies House confirmation statement fee is £50.

You'll also need to file annual accounts and deal with the company's tax obligations. Depending on how you manage those jobs, you may have costs for accounting software, an accountant or other services.

Is it cheaper to be a sole trader?

It's generally cheaper to get started as a sole trader because you don't pay a Companies House incorporation fee.

But setup cost shouldn't be the only reason you choose one structure over another.

A sole trader and a limited company are fundamentally different legal structures, with different implications for liability, tax, administration, ownership and how you take money from the business.

If you're deciding between them, compare the structures rather than just the initial £100 registration fee.

Sole Trader vs Limited Company: Which is Right for You?

So, how much should I budget to set up a limited company?

For a simple company, the answer can be very straightforward:

£100.

That's the current Companies House fee for standard digital incorporation.

You may then decide to spend more on services that make sense for your business - such as a registered office if you don't want your home address made public, accounting support, banking or insurance.

But those aren't all prerequisites for forming the company.

The useful distinction is between what you have to pay to incorporate and what you choose to spend to run the business properly afterwards.

Start your company with FOUNDRS

FOUNDRS guides you through the decisions involved in forming your company - including your company name, registered office, directors, shareholders, share structure and SIC code - before your application is filed with Companies House.

You pay the £100 Companies House incorporation fee. FOUNDRS doesn't add a company formation fee.

Once you're incorporated, FOUNDRS can also help you keep your company information and documents organised and stay on top of the admin that comes next.