WhatsappHow Much Does It Cost to Set Up a Limited Company? (2025 Guide)
Setting up a UK limited company in 2025 costs a minimum of £50 (Companies House fee), but real startup costs usually range from £120 to £650+ depending on compliance, address services, accounting, and support needs.
A Market Shift Every Founder Should Pay Attention To
As of March 2025, the UK has 5.43 million registered companies, but new incorporations dropped by 10% between April 2024 and March 2025 — falling to 801,864. This decline aligns with a major regulatory shift: Companies House raising the incorporation fee from £12 to £50 on 1 May 2024.
For first-time founders, SMEs, and non-resident entrepreneurs, this shift signals an important reality: The cost of starting a business is no longer a small expense — it’s becoming a strategic decision.
The Story Behind the Numbers
Meet Anna — a non-resident tech founder from Berlin who planned to launch a UK holding company.
Shocked by the new £50 incorporation cost and additional address and compliance fees, she realised the outdated £12 guides online no longer apply.
Her experience reflects a wider reality: rising regulations, inflation, and compliance demands are reshaping UK company formation. Many founders now turn to trusted providers such as Leadforce’s Company Formation Solutions to navigate the process efficiently.
What’s the Real Cost of Incorporating a Limited Company?
📌 Core Companies House Fees (May 2024 — Present)
| Online incorporation | £50 |
| Same-day incorporation | £78 |
| Paper filing (IN01) | £71 |
| Confirmation statement (annual) | £34 |
📌 Optional but Common Costs
- Registered office address: £15–£100/year
- Service address for directors: £10–£60/year
- Mail forwarding / virtual office: varies widely
📌 Professional Assistance
- Formation agents: £50–£90 (incl. filing fee)
- Accountants / solicitors: £350–£500+ for incorporation + advisory
Beyond Incorporation: Hidden Costs Founders Often Overlook
Compliance Costs
- • Confirmation statements: £34/year
- • Annual accounts & corporation tax filing (even dormant)
- • Accounting software: around £100/year from 2026
Identity Verification
From autumn 2025, all UK directors and PSCs must verify their identity (ECCTA Requirements).
Non-resident founders may face additional steps or small verification fees.
Expert Note: Despite rising fees, UK remains one of the easiest countries to form a company — according to a House of Commons Library briefing.
A Real Founder’s Journey: The Hidden Cost Revealed
Anna eventually chose a formation provider offering a UK registered office, compliance support, and nominee services. She spent more upfront — but saved weeks of back-and-forth and secured banking smoothly.
How to Form a UK Limited Company: A Practical & Strategic Approach
1. Budget Smartly
- Incorporation: £50+
- Confirmation statements: £34/year
- Registered office & service address: variable
- Accountant/software costs: recurring
2. Choose Your Formation Route
- DIY (Companies House)
- Formation agent (best for non-residents & first-time founders)
- Accountant/lawyer (for share structuring + long-term planning)
3. Address Compliance Risks Early
- Identity verification (mandatory from Autumn 2025)
- Keep PSC records updated
- Use a proper registered office
4. For Non-Residents
Use combined services such as formation + registered office + nominee services for smoother banking and compliance.
Your Ready-to-Launch Checklist
- Incorporation cost sheet
- Compliance calendar for deadlines
- Service comparison table (DIY vs agent vs accountant)
- Leadforce onboarding pack (documents list + ID guide + banking setup roadmap)
Regulatory Updates Every Founder Must Know (2025–2026)
Incorporation fee increased to £50
Mandatory ID verification begins
Digital incorporation rises to £100; confirmation statements to £50
The Final Word: Start Smart, Scale Confidently
Yes — forming a UK limited company is more expensive than before. But with smart budgeting, strong compliance, and the right support, it remains a powerful and globally respected way to build your business.
Whether you’re a first-time founder, non-resident entrepreneur, or SME scaling internationally, understanding these costs is the first step to forming a company that grows sustainably.