Cheap to form, not free to run
Company Formation Fees & Costs in the United Kingdom
UK incorporation costs very little. The meaningful numbers are the annual compliance costs nobody quotes you at the start.
GCC business setup specialists
The formation fee is not the cost
Incorporating a UK company is among the cheapest in the world, which is why comparing formation fees tells you nothing useful. The real annual cost is accounts preparation, Corporation Tax filing, payroll if you employ, VAT if you register, and a registered office if you have no UK premises.
- First-year running cost quoted, not just formation
- Government fees and our fees always separated
- No surprise charges at filing season
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
Companies successfully established.
What moves the number
Six things that decide your UK cost
Formation is trivial; these are what actually vary.
| Driver | Why it changes the cost |
|---|---|
| Accounts and Corporation Tax | The main annual cost, driven by transaction volume and complexity. |
| Registered office | Needed if you have no UK premises, and the rules on it have tightened. |
| VAT | Registration brings quarterly filing and digital record-keeping obligations. |
| Payroll | PAYE must be operated from the first employee, with real-time reporting. |
| Audit | Required above certain size thresholds, and a material step up in cost. |
| Sector permissions | Regulated activities carry their own application and ongoing costs. |
Companies House and HMRC fees, VAT thresholds and audit thresholds are set by the authorities and change. We quote the current position in writing before anything is filed.
How we quote
From enquiry to a written quote
We quote the year, not the incorporation.
Understand the business
Activity, people, expected turnover and whether you will employ or register for VAT. That determines the compliance load.
Price the year
Incorporation, registrations, and the annual accounts, tax and payroll work set out separately from government fees.
Quote, then file
You get it in writing and nothing is filed until you accept.
Before you compare quotes
Questions worth asking anyone quoting UK formation
A cheap formation quote usually means the real costs come later.
- Does the price include annual accounts preparation?
- Is the Corporation Tax return included?
- Is a registered office included, and for how long?
- What happens when the registered office term ends?
- Is VAT registration and filing included?
- Is payroll included, and per employee?
- What triggers an audit, and what would it cost?
- Is the confirmation statement filing included?
- Are HMRC registrations included?
- What are the penalties for late filing?
- Is there a charge for making company changes?
- What is the total expected first-year cost?
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Written quote separating government and service fees
- Company name availability check
- Incorporation at Companies House
- Articles, model or bespoke
- PSC register completed correctly
- Corporation Tax registration
- VAT and PAYE registration where they apply
- Filing calendar for the first year
Not included, quoted separately
- Companies House and HMRC fees, paid at cost
- Registered office address service, quoted separately
- Annual accounts preparation, quoted separately
- Corporation Tax return preparation, quoted separately
- Payroll processing, quoted separately
- Statutory audit where required
- Sector authorisation applications
- Late filing penalties
Verify independently
Official UK authorities
We file directly with these bodies on your behalf.
Questions
UK company costs — FAQs
How much does it cost to form a UK company?
The Companies House fee is small, which is why formation price comparisons are misleading. We quote the first year including the compliance work, because that is the number that matters.
What are the unavoidable annual costs?
Annual accounts to Companies House, a Corporation Tax return to HMRC, and a confirmation statement. Add VAT filing if registered and payroll if you employ.
Do I need a registered office service?
If you have no UK premises, yes. The rules now require an address capable of receiving official post, so an unmonitored address is not sufficient.
When does an audit become required?
Above certain size thresholds based on turnover, balance sheet and employees. We tell you where you sit before it becomes a surprise.
What are late filing penalties like?
Companies House penalties escalate with delay and HMRC applies its own. They are entirely avoidable with a filing calendar, which is why we set one at incorporation.
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