People hear the UK has one of the fastest and cheapest company registration processes in the world and they assume the whole thing costs next to nothing. That used to be closer to true. As of February 2026 the fees doubled and a few other costs changed too.
Still very affordable compared to most countries. But if you are budgeting for forming a company in the UK and working off numbers you read six months ago, some of those figures are now out of date.
Here is what it actually costs now, broken down properly.
The Core Companies House Fees
These are the mandatory statutory fees. Every company pays them. There is no way around them.
Incorporation fee:
- Digital online registration: £100 as of 1 February 2026, up from £50
- Same-day digital service: £156, up from £78
- Paper incorporation: £124, up from £71
Online is almost always the right choice. Faster, cheaper, and Companies House is pushing hard toward fully digital filing anyway. Paper costs more and takes significantly longer.
Annual confirmation statement:
- Digital filing: £50 per year, up from £34
- Paper filing: £110, up from £62
Every active company must file a confirmation statement at least once every 12 months. There is no exception to this. Miss it and you face penalties, and repeated failures can lead to the company being struck off the register.
Voluntary strike-off (if you ever close the company):
- Digital: £13, down from £33
- Paper: £18, down from £44
One fee that actually got cheaper. Dissolving a dormant or unused company is now more affordable than it was.
What Changed and Why
Companies House fees doubled for incorporation because of the Economic Crime and Corporate Transparency Act 2023. The reforms gave Companies House significantly more powers to query filings, remove false information, verify identities, and take enforcement action against fraudulent companies.
All of that costs money to run. The fee increases fund it.
From November 2025, mandatory identity verification for all directors also became part of the process. If you are using an Authorised Corporate Service Provider (ACSP) to complete that verification, registration with Companies House as an ACSP now costs £63, up from £55.
Registering the UK branch of an overseas company also increased to £124, up from £71.
What Else Costs Money
The Companies House fees are just the starting point. Here is everything else that affects the real cost of getting set up.
Registered office address
Every UK company needs a registered office address. It must be a physical UK address where official correspondence can be received during business hours. If you have no physical UK presence, you need a registered office service.
These typically cost £39 to £100 per year depending on the provider. Some formation agents bundle it into their packages. Some charge it separately. Worth confirming exactly what is included before you sign up.
Service address for directors
Director residential addresses are kept private on the Companies House register, but a publicly visible service address is required. If you do not want your home address public, you need a separate service address.
Around £26 to £50 per year from most providers.
Formation agent fees
You can register directly with Companies House for £100. Or you can use a formation agent who handles the process for you. Formation agents typically charge £100 to £200 for their service, which usually includes the Companies House fee plus some combination of registered office, service address, and basic compliance support.
For a first-time founder unfamiliar with the process, a formation agent often makes the experience significantly smoother. For someone who has done it before, direct registration saves money.
VAT registration
Free to register. But once your UK taxable turnover exceeds £90,000, it becomes mandatory. VAT registration adds an administrative layer involving quarterly or annual VAT returns and careful record-keeping. Some businesses hire an accountant specifically for this.
Accountant and legal fees
Not mandatory for a simple single-director company. But worth considering if you have co-founders with different share arrangements, investors, or a custom Articles of Association. A solicitor to draft custom articles typically costs £300 to £1,000 depending on complexity.
Most straightforward setups use the standard model articles from Companies House, which cost nothing.
Business bank account
Not a Companies House fee but a real cost of operating. UK business bank accounts typically have monthly fees ranging from £0 to £25 depending on the bank and account type. Some challenger banks offer free business accounts. Traditional banks usually charge monthly fees.
For overseas founders, opening a UK business bank account takes longer and some banks charge additional fees for non-resident applications.
Corporation Tax registration
Free. Must be done with HMRC within three months of starting to trade. The actual tax you pay on profits is separate from the registration cost.
What the Total Actually Looks Like
For a straightforward single-director company with no complexity:
- Companies House digital incorporation: £100
- Registered office address (year one): £39 to £100
- Service address for director: £26 to £50
- Annual confirmation statement: £50
First year total: roughly £215 to £300 for a basic setup, not including accountant fees or formation agent charges if you use one.
That is still remarkably low by international standards. Setting up a comparable limited company in Germany costs between £4,000 and £5,000 before you factor in required share capital. In many European countries, notarial involvement is mandatory and adds significant cost to incorporation. The UK remains one of the most accessible places in the world to formally incorporate, even after the fee increases.
Ongoing Annual Costs to Budget For
Formation is a one-time cost. Running the company has recurring expenses.
- Confirmation statement: £50 per year
- Registered office renewal: £39 to £100 per year
- Annual accounts filing with Companies House: Free to file, but most companies use an accountant
- Corporation Tax return: File for free, but again, most companies use an accountant
- Accountant fees for annual compliance: typically £500 to £2,000 per year for a small company depending on complexity and transaction volume
The ongoing costs tend to add up to more than the one-off formation cost. Budget for them from the start rather than treating compliance as something to figure out later.
One Thing Worth Knowing Before You Register
As of November 2025, every director must complete identity verification before or at the time of incorporation. If you are based overseas, you cannot use the free GOV.UK One Login route. You will need to go through an Authorised Corporate Service Provider, which charges around £35 plus VAT.
Factor that in if you or any of your directors are outside the UK.
Forming a Company in the UK in 2026
The fees went up. The process is still fast, still digital, still manageable, and still significantly cheaper than almost anywhere comparable. A well-prepared founder can have a registered UK company within 24 hours of starting the process.
At Aadmi, we help businesses and international founders with forming a company in the UK from start to finish. Registration, compliance setup, registered office services, and ongoing support.
It also helps to explore UK company registration requirements, Companies House filing obligations, registered office services UK, corporation tax registration, and private limited company formation before you start.
FAQs
1. Did Companies House fees increase in 2026?
Yes. From 1 February 2026, digital incorporation doubled from £50 to £100. The annual confirmation statement rose from £34 to £50. Voluntary strike-off fees actually decreased.
2. Can I register a UK company directly without using a formation agent?
Yes. You can register directly through Companies House online for £100. Formation agents charge additional fees but handle the process for you and often include registered office and compliance services.
3. Do I need to pay for a registered office address?
Only if you do not have a physical UK address to use. If you have no UK presence, a registered office service typically costs £39 to £100 per year.
4. What is the cheapest way to form a company in the UK?
Register directly online with Companies House for £100. Use your own UK address as the registered office. Use the standard model articles. That is the minimum cost route.
5. Are there ongoing costs after incorporation?
Yes. At minimum, the annual confirmation statement costs £50 per year. Companies also need to file annual accounts, register for Corporation Tax, and maintain a registered office address. Most small companies use an accountant for ongoing compliance.
