What does a limited company cost?
A private limited company is inexpensive to set up in the UK: there is no notary and no minimum capital. The real costs lie in running it – accounts, filings and tax returns. Here is a realistic overview.
One-off incorporation costs
Incorporating online with Companies House costs £100 (since 1 February 2026). Identity verification via GOV.UK One Login is free. Formation agents offer packages with extras such as a registered office service; a solicitor for a shareholders’ agreement or tailored articles costs extra and is optional for most founders.
Share capital: no hurdle
There is no minimum share capital – one share of £1 is enough. The money you put in belongs to the company and can be used for business purposes. What matters more is enough working capital to bridge the time until the first revenue comes in.
Running costs – and how planix helps
Every year you file a confirmation statement (£50 online since 1 February 2026), annual accounts with Companies House and a Corporation Tax return with HMRC. Most founders budget for an accountant and bookkeeping software, which you need for Making Tax Digital for VAT if you are VAT-registered. planix helps you plan these costs from the start.
Frequently asked questions
How much does it cost to set up a limited company in total?
The Companies House fee is £100 online. If you do it yourself, that is often all you pay to incorporate. With a formation agent, a registered office service or legal advice on a shareholders’ agreement, the costs rise accordingly.
Does a limited company have annual costs?
Yes: the confirmation statement fee of £50 a year, plus bookkeeping, annual accounts and the Corporation Tax return – usually prepared by an accountant. Business bank account fees and insurance come on top.
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