The government fee to register a new company in the UK is £100. That is only the first line of a realistic budget. The cost of running a limited company in 2027 has four parts. There is the one-off registration fee and an address that meets Companies House rules. Then come the yearly filings and Corporation Tax. Finally there are the penalties that follow missed deadlines. This article sets out each part using GOV.UK figures, so founders planning UK company formation can budget properly before they set up a limited company.
What it costs to register
Limited company formation online with Companies House costs £100. That fee has applied since 1 February 2026, up from £50. Companies House reviews its fees every year, so it is sensible to leave some margin in a 2027 budget.
Identity verification is now part of the process. New directors must verify before they can incorporate or be appointed. This costs nothing through GOV.UK One Login. If an Authorised Corporate Service Provider, such as an accountant or solicitor, verifies you instead, they may charge a fee.
What the registered address costs
Every company needs an appropriate registered office address in the UK. It must be a place where documents sent to the company would be expected to come to the attention of someone acting for it. A PO box does not qualify. The company must also provide a registered email address. This is not shown on the public register.
Using your home address as the registered office costs nothing, but the address appears on the public register. Using a separate address means paying for a service, and prices depend on what is included. When comparing options, check that post will actually be received and handled, because the “appropriate address” test is about that. If Companies House finds an address inappropriate, it can replace it with a default address. The company then has 28 days to provide a proper one with evidence, or the registrar may start the process of striking it off.
The yearly costs you cannot avoid
Confirmation statement. Every company must file one at least once a year, and the online fee is £50. Dormant companies must file it too.
Annual accounts. Accounts are due at Companies House nine months after the financial year end. The first accounts are due 21 months after incorporation. Companies House does not set a fee for the accounts themselves. The cost is in preparing them, as covered below.
Corporation Tax. Corporation Tax is due nine months and one day after the end of the accounting period. The Company Tax Return is due 12 months after it. GOV.UK lists a 19% small profits rate for profits up to £50,000 and a 25% main rate above £250,000. Marginal relief applies between the two, so the effective rate rises gradually from 19% to 25%. Check GOV.UK before each year ends in case rates change.
The cost of getting it wrong
Late filing is the cost most founders can avoid. For a private company, Companies House penalties for late accounts are:
- up to one month late: £150
- one to three months late: £375
- three to six months late: £750
- more than six months late: £1,500
These penalties are doubled if the accounts are late in two successive financial years. HMRC has its own penalties for late tax returns and late payment. Persistent failure to file can lead to the company being struck off the register. Even a company with no trading activity has to keep up with its filings.
Costs that depend on you
Some of the biggest expenses have no fixed government price. A company can pay for an accountant, bookkeeping or accounting software. Depending on the business, it may also need insurance, a business bank account or a payroll service. These vary widely, so get quotes against your actual needs.
Software choice also matters for the future. GOV.UK says all accounts filings from 1 April 2028 must use commercial software in iXBRL format, and the web and paper routes for accounts will close. The planned requirement for small companies to file profit and loss accounts has been paused. Choosing compatible accounting software now avoids switching later.
If you ever close the company, voluntary strike-off costs £13 online.
Building a realistic 2027 budget
A simple first-year budget starts with the fixed items: the £100 registration fee, the £50 confirmation statement and any address service. Then add professional help for accounts and tax, and set aside money for Corporation Tax once profits are known. Whether you register a new company yourself on GOV.UK or use a business such as BusinAssist to handle the paperwork, the legal duties stay with you as director. Put every deadline in a calendar when the company is formed. Penalties cost far more than the fees they relate to.
Frequently asked questions
How much does it cost to register a new company in the UK?
The Companies House fee for online incorporation is £100. Identity verification through GOV.UK One Login is free. Other costs, such as a registered address service or professional help, are separate.
What does a limited company have to pay every year?
At a minimum, the £50 online confirmation statement fee, plus Corporation Tax if the company has taxable profits. Accounting help, software and address services add to that, depending on your choices.
Can I use my home address to set up a limited company?
Yes, provided it is an appropriate address. It will appear on the public register, which is why some founders choose a separate address.
Does a dormant company still cost money?
Yes. A dormant company must still file a confirmation statement and accounts, so it still carries the £50 confirmation statement fee.
