Incorporating a standard UK Ltd costs £100 if you register online or through formation software, or £124 by paper post. There's no minimum share capital: most companies incorporate with a nominal £1 or £100 in shares, which doesn't have to be paid in before registration.
After that, the main recurring official cost is the confirmation statement: £50 a year if filed online, £110 on paper. Everything else, accountants, payroll, a registered office service and legal advice, has no official price.
| Cost | Amount | Frequency |
|---|---|---|
| Incorporation (online or software) | £100 | One-off |
| Incorporation (paper) | £124 | One-off |
| Same-day incorporation (software) | £156 | One-off, optional |
| Confirmation statement (online) | £50 | Annual |
| Confirmation statement (paper) | £110 | Annual |
| Minimum share capital | None required by law; £1 or £100 nominal is typical | — |
Companies House can register a standard company in about a day online; paper applications take longer.
- Choose a company name and registered office address in the UK (England and Wales, Scotland, or Northern Ireland).
- Adopt articles of association. Most companies use the free model articles set out in law rather than drafting their own; you can also amend them or write bespoke ones.
- Appoint at least one director (a company can have just one) and decide on shareholders and their shares.
- Identify people with significant control (PSCs) — anyone who holds more than 25% of shares or voting rights, or otherwise controls the company — and report them to Companies House as part of incorporation.
- File the incorporation application with Companies House, online, by approved software, or by paper, and pay the fee.
- Register for Corporation Tax with HMRC before the company starts trading. No fee is published.
- Register as an employer for PAYE before your first payday, and no more than 2 months ahead of your first payment to an employee. No fee is published.
- Open a business bank account in the company's name, needed in practice to pay salaries and receive income.
These can be the larger part of the bill, and they depend on the provider. Get quotes:
- An accountant, for bookkeeping, payroll, annual accounts and the Corporation Tax return.
- A company formation agent, if you'd rather not deal with Companies House directly; agents typically bundle the £100 incorporation fee into a package price.
- A registered office address service, if you don't want to use your own business or home address, which becomes publicly visible on the Companies House register.
- Legal advice on articles of association, shareholder agreements and director service contracts, if you go beyond the model articles.
- Employers' liability insurance, required by law once you employ staff, covering at least £5 million.
The official one-off cost of a UK Ltd is low, about £100. The real commitment is the ongoing running cost (accountant, payroll, annual filings) and the time spent on UK employment and tax compliance, not the formation fee itself. See EOR vs local entity for when that running cost starts to beat an EOR's monthly fee, or compare your own headcount with the EOR vs entity calculator. For the day-to-day cost of employing someone in the UK either way, see the UK country guide.
How much does it cost to set up a UK limited company?
Is there a minimum share capital for a UK Ltd?
How much is the Companies House confirmation statement?
Do I need a solicitor to set up a UK Ltd?
Is there a fee to register for PAYE or Corporation Tax in the UK?
What are people with significant control (PSC), and do I need to report them?
- 1Companies House fees
GOV.UK
Incorporation: £100 online or by software, £124 by paper. Same-day incorporation: £156 by software. Confirmation statement: £50 online or by software, £110 by paper.
- 2Model articles for private companies limited by shares
GOV.UK, made under the Companies (Model Articles) Regulations 2008 (SI 2008/3229)
The default constitution a new company can adopt instead of drafting its own articles, in full or amended.
- 3Register of people with significant control (PSC)
GOV.UK / Companies Act 2006, Part 21A
Companies must identify and report their PSCs to Companies House; duty in force since 6 April 2016 (Part 21A, inserted by the Small Business, Enterprise and Employment Act 2015).
- 4Register as an employer
GOV.UK
Register for PAYE before the first payday; registration can't be made more than 2 months before the first payment to an employee. No fee is published.
- 5Set up your company for Corporation Tax
GOV.UK
A company must register for Corporation Tax before it starts trading. No fee is published.
- 6Companies Act 2006, ss. 382 and 477
legislation.gov.uk
Small company thresholds and audit exemption, also used on the UK country guide.
Related research
- Employer of Record in the United KingdomEmployer costs, rules and providers.
- EOR vs local entityWhen a local company starts to pay off.
- EOR vs entity calculatorCompare EOR fees with running your own company.
- Foreign subsidiary vs EORSetup, costs and a worked break-even example.
- GmbH setup costs in GermanyThe equivalent formation-cost breakdown for a German GmbH.
- Moving an employee from an EOR to your own UK LtdDoes TUPE apply? The test, the case law, and what happens either way.
- What is an Employer of Record?How an EOR works, what it costs and the risks, in 30 answers.
- Employer of Record pricing trackerEvery provider's published starting price, checked on its own pricing page.
- Compare EOR providersHead-to-head comparisons of published prices, products and fit.