Company formation in the UK: what it costs, what you need and what is due first

Company formation is the legal step of registering a new limited company at Companies House, which gives the business its own legal identity, separate from the people who own and run it. It is cheap to do and easy to do badly. This guide covers what GOV.UK currently asks for, the identity checks that now apply to directors, where your registered office can be, and the dates that follow.

How much does it cost to form a limited company?

The Companies House fee is £100 for an online application paid by card, or £124 for a paper form IN01 paid by cheque (Companies House fees). GOV.UK says online applications are usually registered within 24 hours and postal ones take 8 to 10 days (register your company). Once the company exists, the first confirmation statement costs £50 online, and the same fees page lists £110 on paper.

Those figures are the public fee only. Formation agents and accountants add their own charges for drafting articles, filing and tax set-up, and the amounts vary widely between firms. Ask for a written fixed quote that lists exactly what it covers, because we are not able to publish a typical price here.

What do you need before you apply?

GOV.UK lists the decisions to make first. A private limited company needs a name that passes the naming rules, at least one director, at least one shareholder (who can be the same person), a registered office address, a SIC code describing what the company does, and governing documents: the memorandum of association, articles of association and a statement of capital (set up a private limited company). A company secretary is optional.

The two decisions that cause trouble later are the share structure and the articles. Splitting shares between spouses, investors or co-founders changes who controls the company and who is a PSC. Model articles suit many small companies, but a shareholder agreement is the place for anything custom, such as what happens if a founder leaves.

Do directors have to verify their identity?

Yes. Under the Economic Crime and Corporate Transparency Act 2023, directors and people with significant control need to verify their identity with Companies House. GOV.UK says verification became a legal requirement on 18 November 2025 and that the date is not a deadline: it starts a 12-month transition period in which companies get everyone verified by their individual due dates (verify your identity).

There are two routes. You can verify online with GOV.UK One Login using a biometric passport, a UK photo driving licence or a UK biometric residence permit, residence card or Frontier Worker permit. Or an authorised corporate service provider, which can be an accountant or solicitor, can verify you on your behalf. People without photo ID may be offered other checks, such as bank details with a National Insurance number or a visit to a Post Office.

For a new company, GOV.UK says you will be asked for each director's Companies House personal code as part of the registration filing. For existing companies it is due with the next confirmation statement. A new PSC added after 18 November 2025 can verify when added to the register or within 14 days after (when you need to verify). The guidance does not set out the consequences of not verifying, so ask your adviser rather than assume a grace period.

What counts as a valid registered office address?

A registered office must be a physical address in the UK, in the same country where the company is registered, so a company registered in Scotland needs a Scottish address. A Royal Mail PO Box, or a similar service from another company, can no longer be used. The address must also be appropriate: someone must be aware of post delivered there, and senders must be able to get confirmation of delivery (registered office and email addresses).

The address is public on the register. If you do not want your home address shown, GOV.UK points to using a different address with the owner's permission or appointing an agent; an accountant's or solicitor's address works only if it meets the same tests. You also have to give a registered email address and read what arrives there. It is not published on the public register.

Who is a person with significant control?

A PSC is someone who owns or controls the company. GOV.UK describes the usual tests as holding more than 25% of the shares or voting rights, being able to appoint or remove a majority of the directors, or having the right to influence or control the company or a trust (PSC guidance). You confirm your PSCs when you register. If there is no PSC you still have to say so and file a statement explaining why.

Changes matter too. Tell Companies House about changes to PSC details within 14 days of confirming them. Someone who does not respond to a PSC notice within one calendar month, or who gives false information, commits a criminal offence under that guidance. Whenever shares move between owners, check whether a new PSC has appeared.

What are the first deadlines after incorporation?

Four sets of dates run from the day you register. Companies House expects your first accounts 21 months after the date you registered, and later accounts 9 months after each financial year ends. HMRC wants Corporation Tax paid 9 months and 1 day after the accounting period ends, and the Company Tax Return 12 months after it ends (accounts and tax returns). Because first accounts often cover more than 12 months, the first tax return can need two periods and two payment dates.

The 3-month tell-HMRC step is the one people forget. GOV.UK's Corporation Tax guidance says to tell HMRC within 3 months of the tax accounting period starting, and the formation guide adds that you add Corporation Tax services to your business tax account when you start to do business (Corporation Tax: trading and non-trading). If the company stays dormant at first, ask your adviser how that affects you rather than guessing.

What records and filings continue every year?

Besides accounts and the tax return, the company files a confirmation statement every year to confirm its details are correct. GOV.UK warns that HMRC can fine a company up to £3,000 for failing to keep accounting records, and records have to be kept for 6 years from the end of the last company financial year they relate to (company and accounting records). Start good bookkeeping from the first invoice, not from year end.

If you are still weighing whether a company suits you at all, read our comparison of sole trader or limited company first. Some start-ups also want to know whether their work could qualify for R&D tax relief, which is worth raising before the first accounts are drafted.

What should you ask an accountant before hiring one?

• Is the incorporation fee, your fee and any agent charge quoted in writing as one fixed figure?
• Will you file as an authorised corporate service provider and verify the directors, or do we do that ourselves?
• Whose address becomes the registered office, and does it meet the appropriate-address test?
• Will you set up Corporation Tax, PAYE and VAT registrations, and who diarises each deadline?
• Who holds the company's login codes and statutory registers after formation?
• What happens to the fee if the name is rejected or the filing is refused?

How do you check an accountant is registered?

1. Ask which professional body they belong to: ICAEW, ACCA, CIMA, AAT or ATT, among others.
2. Search for the firm or the individual on that body's own online register, which lists current members.
3. Check that the firm name and address match what the accountant gave you.
4. Ask whether the firm is registered as an authorised corporate service provider if you want it to verify identities.
5. Request professional indemnity insurance details and an engagement letter before any money moves.

You can browse register-checked firms through our city pages, and our guides explain the other services you may need once the company is running.