In this article, we’ll discuss the cost of starting a limited company in the UK in 2022 as well as some optional costs that might occur and any other costs you need to consider.
Starting a limited company in the UK in 2022
The actual cost to set up a limited company isn’t much at all, there is a £12 company filing fee you have to pay to Companies House if you go to them directly. However, if you chose to register a company with us, a Companies House approved formation agent, It will cost just £9.99 with our E-formation bundle! Not only will we form your limited company and digital versions of all your company documents, but you’ll also get a range of other services like a business bank account, a business phone number, as well as lifetime customer support from our expert in-house team for free!
Optional costs when starting a limited company
There are also other optional costs which you might incur when starting a limited company, such as printing formal company documents like share certificates and your Certificate of Incorporation. These are usually worth getting on official grade paper – they can help you get the most out of your formation and prepare you for opening a business bank account or meeting potential investors.
You might even decide to choose a Registered Address service. Services like this keep your personal address off the public register and protect your privacy.
Other costs you need to consider
There are other business setup costs that depend completely on the nature of your company and how you plan to run it. It’s worth noting that these would occur regardless of the business’s legal structure. Here are just a few to consider:
- Physical premises, like an office or workshop: Having business premises will naturally incur a cost in terms of rent. However, if you’re in the early stages of setting up the business you may want to save money by starting from your own home.
- Hiring staff: If and when you decide to start hiring, staffing will be your biggest cost as an ongoing business. This can also include an accountant or agency to help you run your business.
- Renting or buying equipment: Buying equipment can involve a high upfront cost whilst renting spreads the cost but will be more over time.
- Creating marketing materials: Every business will need a marketing strategy which should include PR outreach, brochures, flyers, a website and so on. For more advice on this, check out the marketing section of our help centre.
Why start a limited company in the first place?
It’s worth noting that regardless of the cost to set up a business, choosing a limited company as your business’s legal structure can save you money in itself. It can certainly be more tax-efficient, especially if you are starting to earn a considerable amount as a sole trader. Secondly, it limits your liability which can offer protection in case something goes wrong and costly legal services are needed.
The cost of starting a limited company in the UK is largely down to you and will depend on your particular needs, but starting a limited company, in the long run, can be more cost-efficient, especially when it comes to tax and limiting your liability. in case something goes wrong.
The actual expense and trouble involved with simply registering a company name are very low, and even lower when using a formation agent like us.
If you chose to use our formation service, you can ensure all the details are taken care of and that you have professional support at every stage of the process as well as access to all the additional products and services you might need in one place to get your company up and running, click here and take the first step by checking to see if your company name is available to register.