What does UK company formation actually cost?
The cost of forming a UK limited company varies enormously depending on the route you take. Many people pay far more than they need to. Here is an honest breakdown of the market:
| Route | Typical Cost | Notes |
|---|---|---|
| Online formation provider | Provider fee + £50 CH fee | Guided application; check what is included |
| DIY — Companies House WebFiling | £50 | No assistance provided |
| Formation agent — basic | £29–£49 + CH fee | Basic processing only |
| Formation agent — premium | £79–£149 | May include registered office, extras |
| Accountant | £200–£500 | Includes some ongoing support |
| Solicitor | £500–£1,500+ | Full legal support |
There is no legal or quality difference between a company formed via a solicitor and one formed through our route. Companies House processes all electronic applications through the same WebFiling system and issues identical Certificates of Incorporation. The only difference is what you pay.
How low-cost formation works
Low-cost formation usually means completing a standard online application with a focused service scope. The Companies House filing fee is separate from any provider fee, so check the full total before you apply.
A basic route may help you complete the application, while a premium route may add a registered office address, mail handling, confirmation statement reminders, or more ongoing support. These extras can be useful, but they can also create recurring costs.
The legal outcome is the same when Companies House accepts the application: your company receives a registration number and incorporation documents. The main difference between routes is the help and services provided around the filing.
Before choosing a provider, check:
What's included in a standard formation?
A standard formation application collects the information Companies House needs to register your company. Optional services vary by provider and should be treated as separate from the statutory filing.
Electronic filing with Companies House
Your application is submitted via the WebFiling system. No additional filing charge is passed to you.
Certificate of Incorporation
The legal document confirming your company's existence, your Company Registration Number, and date of incorporation. Delivered by email as a PDF.
Memorandum of Association
The statutory document confirming the founding shareholders' agreement to form the company. Automatically generated and included in the filing.
Articles of Association
The rules governing how your company operates. Standard model articles are used unless you specify bespoke articles (which would require additional legal input).
Share Certificates
Documentation of each shareholder's ownership stake in the company, issued after incorporation.
Company Registration Number
Your unique 8-digit identifier on the Companies House register. Used on all official correspondence, invoices, and your website.
Ongoing costs to budget for
Forming your company is only the first cost to budget for. Every UK limited company has ongoing statutory obligations and may also need accounting, registered office, payroll, or professional support.
Filed annually with Companies House. Free if filed online and no changes to report for paid-for elements.
Free if you prepare and file them yourself (micro-entity simplified accounts). Accountant fees vary by complexity.
Required if you pay yourself a salary or employ staff. Administered via HMRC.
Required once turnover exceeds £90,000. Voluntary registration available at any level.
Due 9 months after your company's year-end. HMRC's free service available for straightforward accounts.
Minimum annual cost: £34/year (Confirmation Statement only, if you file all other returns yourself).
Can cheap company formation be legitimate?
Yes, provided you understand what the price includes and complete the application accurately.
Companies House does not operate a tiered service. There is no "premium" electronic formation that gets you a better company or faster processing in exchange for a higher fee. Every electronic application goes through the same WebFiling system, is reviewed by the same team, and results in the same Certificate of Incorporation. The £50 is simply the statutory filing fee — it does not buy anything beyond processing.
A low advertised price can reflect a narrow service: the provider may simply help prepare and submit a standard application. That is different from legal advice, bespoke articles, tax advice, or ongoing accounting support.
Your company appears on the Companies House public register once the application is accepted. Compare the total price, the renewal terms, and the support available rather than choosing on the headline formation fee alone.
Related guides
Frequently asked questions
What does cheap company formation mean?
Cheap company formation usually means using an online route with a clear, limited service fee rather than paying for bespoke legal advice. You still pay the Companies House filing fee and remain responsible for providing accurate company information.
Are there hidden fees?
The Companies House filing fee is separate from any provider fee. Before applying, check whether the advertised price includes the filing fee, registered office services, confirmation statement support, or any optional extras. Running a company also creates ongoing statutory and professional costs.
What ongoing costs are there?
Every UK limited company must budget for its annual Confirmation Statement fee, accounts and Corporation Tax administration, and any professional services it chooses to use. Accountant fees vary widely, so compare the total first-year and recurring cost rather than only the formation price.
Can non-UK residents form a UK company?
Non-UK residents can often form a UK company, subject to Companies House requirements and the need for an appropriate registered office address. Banking, identity checks, and provider eligibility can vary, so check the requirements before applying.
When is a formation agent worth using?
An online formation agent can be useful when you want a guided application, help checking the information you need, or optional services such as a registered office address. Compare the service included, the filing fee, and renewal costs before choosing a route.