Registering a limited company costs £100 online. That’s the only fee the law requires on day one. The bigger costs come later, every year the company exists.
This guide lists both. First the one-off costs, then the yearly running costs. It uses the Companies House fees in force since 1 February 2026.
Quick Answer
It costs £100 to register a limited company online, or £124 by post. Identity checks and a bank account can be free. Each year you pay £50 for the confirmation statement. Your biggest yearly cost is usually your accountant. Corporation Tax comes on top, based on profit.
| Cost | When | Amount |
|---|---|---|
| Incorporation at Companies House | Once | £100 online, £124 by post |
| Director identity check | Once per director | Free through GOV.UK One Login |
| Formation agent | Once, optional | Agent’s own fee |
| Registered office service | Yearly, optional | Provider’s own fee |
| Confirmation statement | Every year | £50 online, £110 paper |
| Annual accounts | Every year | No filing fee |
| Accountant and software | Monthly or yearly | Depends on the firm |
General guidance only. Your own situation may need specific advice from a qualified accountant.
What Are the One-Off Costs to Set Up a Limited Company?
The only fee you must pay is £100 to Companies House online. A paper application costs £124 and takes longer. Director identity checks are free through GOV.UK One Login. A business bank account can be free. Formation agents and address services are optional extras, each with its own price.
You register your company on GOV.UK. Online, it usually takes about 24 hours. By post, on form IN01, it takes 8 to 10 days.
Every director must verify their identity before the company is registered. Doing it yourself through GOV.UK One Login is free. An accountant can do it for you as an authorised agent, often for a fee.
Some costs depend on your choices:
Registered office address. You need a UK address for official post. It goes on the public register. Many owners pay a service to keep their home address private.
Business bank account. Keep company money apart from your own. Some banks charge a monthly fee. Others are free.
Company name. There’s no fee to check or choose a name.
Your legal duties start on the day you finish limited company registration in the UK. So plan the yearly costs before you register.
Do You Need a Formation Agent?
No. You can register directly with Companies House for £100. A formation agent files the same form for you. Agents charge their own fee, often bundled with extras like an address service. Some accountants include company formation in a monthly package, so check that before paying twice.
Agents save time if your setup isn’t simple. Think several shareholders, different share classes or a name that needs care.
Compare packages on what’s included, not just the headline price. A cheap package often leaves out the registered office or the ID checks.
Online, you can finish the form in one sitting. Our guide to setting up a limited company in the UK walks through each step.
What Does a Limited Company Cost to Run Each Year?
Expect four regular costs. A £50 confirmation statement each year. An accountant to prepare your accounts and Company Tax Return. Accounting software for your records. Corporation Tax on your profit, at 19% to 25%. Payroll and VAT add more work once they apply.
Confirmation statement. £50 online or £110 on paper, every year. It confirms your company details are still right. Not filing it is an offence, and Companies House can close the company.
Annual accounts. There’s no fee to file them. Late accounts cost money though. Companies House charges late filing penalties from £150 to £1,500 for a private company. The penalty doubles if you’re late two years in a row.
Corporation Tax. Profits up to £50,000 pay 19%. Profits over £250,000 pay 25%. Between the two, marginal relief applies. You pay 9 months and 1 day after your year end.
Payroll. Paying a salary, even to yourself, means running payroll. That brings reports to HMRC and possibly a workplace pension.
VAT. Registration is free. It becomes compulsory once taxable turnover passes £90,000 in 12 months. Then you file VAT returns through software.
Your accountant. This is usually the biggest yearly cost. Fees depend on what’s included, from accounts only to full payroll and VAT. We set out accountant fees in the UK so you can compare quotes.
How Do Sole Trader and Partnership Costs Compare?
Becoming a sole trader is free. You register for Self Assessment with HMRC at no cost. An ordinary partnership is also free to register with HMRC. A limited liability partnership is different. It registers at Companies House like a company, and it files yearly accounts and a confirmation statement.
A sole trader has no Companies House fees at all. You file one Self Assessment return a year.
A company costs more to run. It can also save tax, but only at the right profit level.
Are Set Up and Running Costs Tax Deductible?
Running costs usually are. Accountancy, software, insurance, bank charges and the confirmation statement fee are normal business costs. The company deducts them before Corporation Tax. The £100 incorporation fee is different. HMRC treats costs of forming the company as capital, so it usually isn’t deductible.
The test is whether you paid it wholly and exclusively for the business. Most running costs pass.
Keep the receipt for every cost from day one. Costs you pay before trading starts can sometimes count too. Your accountant will check which ones qualify.
How Can You Keep Set Up Costs Low?
Register online yourself for £100 and verify your identity free through GOV.UK One Login. Choose a free business bank account. Pick an accountant with a fixed fee and a clear list of what it covers. Then file on time, because late penalties cost more than any service.
Three habits save the most money:
File early. A late confirmation statement or late accounts costs more than doing them on time.
Agree the scope. A fixed fee with a written list of filings stops surprise bills.
Start your books on day one. Catching up a year of records at year end costs far more.
Get Your Company Set Up Right
We register companies and handle what comes next. That covers Corporation Tax, payroll, VAT, the accounts and the confirmation statement.
Get a quote and we’ll send you our current pricing. DASA’s limited company formation service covers the full setup.
This article gives general information about limited company costs in the UK. Companies House and HMRC set these fees and rates, checked in October 2026. It’s not tax or legal advice. Speak to a qualified accountant about your own situation.
Last reviewed October 2026 by Raqeeb Marzook, ACCA.
Frequently Asked Questions
How much does it cost to set up a limited company?
£100 online at Companies House, or £124 by post. Identity checks through GOV.UK One Login are free.
How much is a confirmation statement?
£50 online or £110 on paper, every year, from 1 February 2026.
Do I need a formation agent?
No. You can register directly with Companies House. An agent charges its own fee.
Is the incorporation fee tax deductible?
Usually not. HMRC treats costs of forming the company as capital. Running costs like accountancy and software usually are deductible.
What does a limited company cost each year?
The £50 confirmation statement, your accountant, software and Corporation Tax on profit. Payroll and VAT add more once they apply.