How much does it cost to set up a limited company in the UK

Setting up a limited company in the UK can be a natural next step for sole traders or new entrepreneurs looking to establish a more professional presence. And while the process itself is pretty straightforward, the true costs involved aren’t always obvious at first glance.

From the one-off registration fee to ongoing obligations like annual filings and accounting support, this guide will help you break down the full cost of setting up a limited company. This will help you budget with confidence – and avoid those nasty surprises that tend to rear their ugly head once it’s too late.

Whether you're in the early stages of planning or actively comparing setup options, we’ll walk you through what you need to know. And we’ll show you how Zempler’s Formations service can save you time, money, and a load of stress along the way.

Note that all the costs we’ve included in this article are estimates subject to change and all data is correct on the date the article was written.

The basic cost of registering a limited company

Let’s start with the most straightforward expense: registering your company with Companies House.

Registration fee

Go directly through the official UK government website and the standard online registration fee is £50. This covers the formation of your private limited company (Ltd) using the default memorandum and articles of association. If you choose to register by post, it’ll cost you £40, but usually takes longer to process.

That’s the legal minimum you’ll need to pay. But for many businesses, that’s just the beginning.

If you want to register through a formation agent (and many do), packages can range anywhere from £15 to £100+, depending on what’s included. Some services offer extras like a digital certificate of incorporation, support choosing a company name or help setting up a business bank account.

Cost:

• Companies House (online): £50
• Companies House (by post): £40
• Through a formation agent: £15 to £100+
  

Register your business through Zempler Bank’s Formations service and get £100 if you open a bank account

Setting up a company doesn’t have to be complicated. With the Zempler Formations service, you can register your limited company and open a business bank account at the same time. Our service streamlines the entire process, giving you fast approval, support with questions, and the tools you need to manage your finances from day one. No hidden fees, no unnecessary hassle – just a smarter way to start your business.

Learn more about Formations

Additional startup costs to consider

Sadly, the formation fee is unlikely to be the only thing you’ll need to pay up front. In reality, there are several other startup costs you’ll end up having to cover.

1. A registered office address

Every UK limited company needs a registered office address, which is made publicly available on the Companies House website. If you’d prefer not to list your home address (a common concern), you can buy a virtual registered office address instead.

Cost: Typically £10 to £50 a month

Estimated costs of a registered office address:

2. A business bank account

While it’s not a legal requirement, a dedicated business bank account can help you better manage your business finances. It makes accounting simpler, keeps personal and company finances separate and is often required if you plan to apply for business credit in the future.

Some banks offer free business accounts for the first 12–24 months; many others charge a monthly fee after the introductory period.

Cost: From free or no account fee to around £10 a month (though some might be more)

Starting at £0 monthly: business bank accounts for the crafters, grafters and self starters

Zempler business bank accounts make managing money simpler. Every account comes with:

• Fast signup: Apply in minutes online
• In-app and online banking
• Instant payment notifications
• 24/7 fraud monitoring
• UK telephone support from real humans.

Learn more about our business bank accounts.

3. Insurance

Insurance probably isn’t the first thing on your mind when you’re setting up a limited company. But in some industries and sectors, having the right insurance is essential to working with and for companies and clients. While it’s not always mandatory, many limited companies insist on it to mitigate any potential future risk.

The right cover protects your business from unexpected risks or problems that might come up. This could be when you're working with clients, selling your services or products or even when hiring employees.

Here are some of the most common types of insurance new businesses consider:

• Public liability insurance: If you interact with clients, customers or the general public – at your premises or theirs – public liability insurance covers you in case someone is injured or their property is damaged because of your business activities. For example, if a client trips over a cable at your office, this insurance would cover legal fees and compensation costs.
• Professional indemnity insurance: If you provide advice, consultancy or any professional services, this protects you if a client claims that your work caused them financial loss or reputational damage. It's especially important for sectors like marketing, finance, IT and consulting.
• Employers' liability insurance: If you employ anyone, even just one person, it’s a legal requirement to have employers’ liability insurance in the UK. It protects you if an employee is injured or falls ill as a result of their work.
• Business contents insurance: This covers the equipment, stock and belongings inside your office or premises against theft, fire and damage.

Cost: Varies widely, but can start from as little as £5 a month for very small businesses.

Zempler Bank have partnered with Superscript to offer a wide range of cover for small businesses including everything listed above and more. Want to find out more about the offer?

4. Domain name and email setup

While you don’t have to have a website or business email when you set up a limited company, it’s a smart move to secure a domain name as early as possible in pretty much every industry. It helps establish your brand identity, adds professionalism and means you’ll be ready to grow your online presence whenever you’re ready.

Nowadays, people default to searching online for whatever they need, so having a professional functioning website (no matter how basic) is a useful resource for finding new customers and building trust with your target market.

Cost: £10 to £50 a year (for the domain) + optional email hosting

Ongoing costs and compliance fees

Once your limited company is up and running and your setup costs are paid, there are recurring costs you’ll also need to plan for. These aren’t always obvious at the outset but they’re essential to remain compliant with HMRC and Companies House.

1. Annual confirmation statement

Every UK limited company must file a confirmation statement each year to ensure their records are up to date. This is separate from your tax return.

Cost: £34 (online filing) or £62 (paper filing)

2. Accountancy fees

Unless you’re confident with accounts and tax filings, you’ll likely need to hire an accountant. At a minimum, you’ll need to submit annual accounts and a corporation tax return. If you’re VAT registered or running payroll, there’s more work involved.

Cost: From £300 to £1,200+ a year depending on complexity

3. Bookkeeping software

Cloud-based tools like Xero, QuickBooks and FreeAgent help with invoicing, expenses and VAT. Some banks and accountants offer free trials or discounts as part of a business account bundle.

Cost: £10 to £30 a month

If you’re looking for a business account that can help you submit your VAT returns, Zempler Bank business accounts come with a free Making Tax Digital (MTD) tool that’s compliant and helps you keep everything organised digitally.

4. Payroll (if you’re hiring staff)

Employing even just one person comes with payroll responsibilities. Most businesses will need software and possibly a payroll service to make sure they handle PAYE and National Insurance. This may be covered in your accountancy fees, so check before you budget extra for it.

Cost: £10 to £50 a month depending on provider

Common hidden costs and how to avoid them

Sometimes the cost of setting up a company isn’t just financial. It’s time, mistakes and admin as well. Here are a few common pitfalls you might come up against.

• Incorrect registration details: Choosing the wrong SIC code, misspelling a name, or missing out a shareholder can all require corrections later.
• Lack of support: With no one to guide you through compliance, deadlines can be missed and filings incorrect. This can result in penalties.
• DIY overwhelm: Trying to juggle set up, finances, compliance and marketing will likely burn through your time faster than you’d expect.

The solution? Good advice from an experienced expert. If you get overwhelmed by the financial complexity that comes with running a limited company, it’s always a good idea to get some independent professional advice. It can save you a lot of time and stress.

Zempler Formations: An easier, smarter way to set up your company

We created our Formations service for people who don’t want to spend their first few weeks as a business owner navigating red tape.

It combines registering your company with applying for and opening a business bank account, so you can do both at once. No need to bounce between websites or chase down missing documents. No confusing paperwork. Just a seamless, all-in-one setup built for sole traders, micro businesses and SMEs.

What’s included:

• UK limited company registration with Companies House
• Dedicated business bank account
• Access to digital tools to manage your finances
• Transparent, competitive pricing
• Ongoing account support from the Zempler team

If you're looking for a cost-effective and time-saving way to get started, bundling these actions together is often the smarter option. With Zempler, you’re not just registering your company – you’re setting yourself up for success.

Final thoughts

So how much does it cost to set up a limited company in the UK?

The answer, of course, depends. On whether you register directly or use an agent. On whether you want support with accounting. On whether you're happy to use your home address or want to keep things private.

But as a ballpark? Adding up the costs we’ve laid out in this article, you can expect to spend anywhere between £100 to £500 to get fully set up – with additional costs coming into play as you grow. Remember, this is only a guideline and your setup figure may be different.

The key is to plan ahead. Know what’s required, choose only what you need and consider where you can simplify without cutting corners.

And if you'd rather let someone else handle the complexity, the Zempler Formations service offers exactly that: a complete, compliant set-up without the faff.

Ready to get started?

Register your limited company and open your business account in one go with Zempler.