Small Business Guides / starting a business in the UK

How Much Does It Cost to Set Up a Limited Company?

The incorporation fee is one cost. Your launch budget also needs to cover the practical work required to run the company and deliver its first sale.

Separate filing fees from your business budget

Companies House’s standard digital incorporation fee is £100 at the date checked. Different filing methods and services can cost more. Check the current fee schedule before paying.

A company-formation package may include an address service or other extras. Compare the actual filing fee, optional services, renewal charges and cancellation terms. A cheap first year can become an expensive recurring commitment.

Allow for the costs that fit your business

• Accounting and tax support.
• Address and mail handling where needed.
• Insurance, licences and professional requirements.
• Equipment, stock, software and premises.
• Website, domain, business email and launch marketing.
• Cash to cover bills before customer payments arrive.

Worked planning example

A fictional home-based consultancy budgets £100 for digital incorporation, £600 for initial professional support, £700 for equipment, £350 for insurance and £450 for its website and identity. That totals £2,200. Adding a £1,800 operating reserve gives an illustrative launch cash requirement of £4,000.

Those are planning assumptions, not supplier quotes or typical market prices. Replace each with your actual quotation and check VAT treatment. Share capital and money lent by a director need recording correctly; they are not interchangeable with an expense.

Remember ongoing obligations

The company will have continuing filing and record-keeping work, including a separate confirmation-statement fee where applicable. Budget for that administration even if trading starts slowly.

Use the startup cost calculator, read registered office rules and follow the registration guide.

Explore Polar’s business tools or the connected business software for the next practical step.