Guide · Company formation
How much does it cost to start a limited company in the UK?
The only mandatory cost is £100— the Companies House digital incorporation fee. Every other cost is a choice. Here's what each optional part really costs in 2026, and where the “cheap formation” offers hide their margin.
The mandatory cost: £100
Companies House charges £100 for standard digital incorporation. That fee is the same whoever files it — you, an accountant, or a formation agent. Since 18 November 2025 incorporation also requires every director and PSC to complete identity verification, which is free via GOV.UK One Login but cannot be skipped.
The optional costs, itemised
| Item | Typical cost | Notes |
|---|---|---|
| Business account | From £0/mo | Providers vary; ProSolve sets up an ANNA account as part of every formation. ANNA is an e-money provider, not a bank — balances are safeguarded, not FSCS-protected. |
| Registered office / address service | £20–£100/yr | Only needed if you don’t want your home address on the public register. |
| Domain name | £10–£15/yr | Buy the .co.uk and .com together if both are free. |
| Professional email & workspace | £0–£10/user/mo | A secure workspace on your own domain signals legitimacy to banks and customers. |
| Basic website | £0–£999 | DIY builders are cheap but cost your time; a done-for-you 5-page build is £999 fixed at ProSolve. |
| Logo & brand | £0–£349 | Optional at launch; easy to add later. |
| Accountant (ongoing) | £300–£1,500+/yr | Not needed to incorporate; valuable once trading. |
The ongoing costs nobody mentions
- Confirmation statement — £50/year filed digitally (£110 on paper) since the fees rose on 1 February 2026. Miss it and the company can be struck off.
- Annual accounts — free to file, but most trading companies pay an accountant to prepare them.
- Corporation tax registration — free, within 3 months of starting to trade.
Skip the spreadsheet. Launch fixed-price.
Formation + ANNA business account setup is £299. The full Foundation package — formation, ID verification, secure workspace, domain and consultancy — is £849. The price you see is the total amount payable and includes any applicable taxes — nothing is added at checkout.
See fixed prices →Frequently asked questions
Can I start a UK limited company for free?+
No. The Companies House digital incorporation fee is £100 and there is no free route. Some formation agents advertise "free" formation but recover the fee elsewhere — check what the total at checkout actually is.
What does a limited company cost per year after setup?+
The recurring statutory cost is the confirmation statement fee — £50 per year filed digitally, or £110 on paper. (It was £34 until Companies House raised its fees on 1 February 2026.) Beyond that, typical running costs are optional: accountancy (commonly £300–£1,500+/year), registered office services, domain renewal, and any software subscriptions.
Do I need an accountant to form a company?+
No — incorporation itself is a form-filling exercise you can do directly or through a formation partner. An accountant becomes valuable for ongoing corporation tax, payroll and VAT compliance once you are trading.
Is a business bank account a legal requirement?+
A limited company is a separate legal person, so it needs its own account in practice — mixing company and personal money creates accounting and legal problems. ProSolve formations include setting up an ANNA business account at no extra cost from us. ANNA is an e-money provider rather than a bank, so balances are safeguarded rather than FSCS-protected, and the account is subject to ANNA’s own approval checks.
What about the identity verification requirement?+
Since 18 November 2025 every director and PSC must verify their identity with Companies House before incorporation completes. Verification itself is free via GOV.UK One Login — see our dedicated guide for the step-by-step process.
This guide is general information, not financial or legal advice, and reflects fees as we understand them in 2026. Companies House fees and filing requirements change — always check current guidance on GOV.UK before acting.