How much does it cost to set up a limited company?
Starting your own business is very exciting. It’s the first step towards being your own boss and hopefully making a major impact on your industry – as well as making a lot of money if your new venture is successful.
But, before you can make money with your business, you need to understand the costs involved. When starting out, most business owners will need to spend some money to get things off the ground, whether you’re buying tools, setting up your website or promoting your new products or services.
There are also costs involved specifically when you set up a limited company, which increased in 2024 in an effort to protect the integrity of the data held by Companies House. But how much does it cost to set up a limited company and are there ways to save money so you can focus your spending elsewhere?
In this article, we’re going to explain the cost to set up a limited company when you register with Companies House, and how SUAZ can save you from those fees so you can concentrate on other aspects of starting your business.
How much does it cost to set up a limited company yourself?
If you register your limited company on Companies House yourself, it will cost you between £50 and £71. This is more than a 300% increase, as the fee rose from £12 in May 2024.
And in the early stages of starting your business, every penny counts – so to spend this much might be a major hit on your budget. But, it’s important to note that Companies House didn’t raise this fee to make more money. SUAZ’s Start-Up Advisor, Joe, says, ‘The increase is justified as an effort to protect the integrity of the public register. If these changes lead to more accurate information on Companies House, there will be a decrease in fraud and the overall benefit to the reputation of UK companies.’
If you’re looking to set up your company with same-day incorporation, it can cost even more, at £78. And if you rush things and later decide to change your name, this will cost an additional £83.
It’s also important to note that it takes some time to set up a limited company this way. Again, this is time that could be spent elsewhere, including making money.
How much would an accountant cost to set up my limited company?
Employing an accountant can be a valuable investment for your business, particularly if you’re not confident with overseeing your business’ finances. But, if you ask an accountant to set up your limited company on your behalf, not only will you be responsible for the incorporation fee which is a minimum of £50, but you’ll also need to pay the accountant for their time. This could be anything from £100 for an inexperienced accountant, or £300+ for a senior or experienced accountant.
This is, of course, a rather eye-watering expense in the early days of starting your company.
If you’re really not confident about taking this on yourself and you have a large budget, you may want to ask an accountant to take on this responsibility. However, there are ways to ensure an expert takes care of this for you while also making sure you don’t spend unnecessary money.
How to save money setting up a limited company
Did you know that when you’re setting up your business, by using a company formation service like SUAZ you make significant savings? In fact, using SUAZ means you don’t have to pay Companies House a penny and the cost to set up a limited company is zero.
So, if you want to save yourself the time it takes to submit the relevant forms to Companies House and the £50+ fee, we’re here to help. There are no hidden costs and you’re not tied into buying something down the line.
Saving money when you’re setting up your limited company is vital, so having a team of experts take this time-consuming and pricey task from you can go a long way towards helping your business get off the ground.
The costs of registering a business
As we highlighted right at the beginning of this article, starting a business is expensive. There are so many costs associated with it that it can sometimes be a little daunting.
One of those costs is the fees you pay to Companies House when registering a limited company. If you do this directly, you have to pay those fees, which are now a minimum of £50.
However, if you use a company formation package, like the one offered by us here at SUAZ, you don’t have to pay a thing. This means you have extra budget to play with and put yourself in a better position for success.
If you’re thinking of setting up a limited company, Start Up A-Z is here to help. With us, you can form your company for free - we’re here to support you at every stage. Find out more about our invaluable company formation service.