When setting up a business, there are many factors to consider and start-up costs to budget for. However, business registration is relatively simple and affordable. Depending on your type of business, method of application, and any add-ons, the price can vary. Read on to find out what registration costs you can expect for your business.
Cost of business registration
If you are a sole trader, you do not need to register your company, meaning no fees. However, you do need to register for self-assessment with HMRC and keep records of your income and expenses.
If you are registering as a limited company, you can either apply through Companies House service, use a third-party agent, or hire an accountant to register on your behalf. Registering through Companies House is the most affordable option, and costs £50 for online registration or £71 for postal registration. If you want same-day registration the postal cost is £100. The costs of third parties and agents will depend on who you register with, but will normally include the standard registration fee with an additional service cost.
How to register your business
To register you will need to complete an IN01 form with details about your business.
Here is the information you need to register:
- The company name (this cannot be the offensive or the same as another registered company, and will typically include ‘limited’ in the title)
- The company address
- A business phone number
- A list of the company directors and shareholders
- Share certificates showing proof of share ownership
- A memorandum, which is a legal statement signed by all initial shareholders or guarantors
- Articles of association detailing the rights and powers of directors and shareholders
You can register online with Companies House if you are registering a private limited company which will be limited by shares and use standard articles of association. Otherwise, you will have to register by post.
If you have applied online, after paying the registration fee you’ll receive an electronic copy of your registration documents within 24 hours. You should also receive a physical copy within 3-5 working days. For postal registration it should take between 8-10 days unless you pay for same-day registration.
Additional fees and information to consider
As well as the initial registration fee, you will need to register for Corporation Tax within 3 months of registration. Luckily, if you have registered online, you are automatically registered for this.
Furthermore, if you choose to register your office address or would like additional business certificates this will require an additional fee. Also, setting up a business bank account can have charges.
You will also need to pay Corporation Tax on your profits, and file annual accounts with Companies House about your earnings.
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