The Real Cost of Setting Up a Limited Company in the UK (2026)

The cost of setting up a limited company in the UK is often quoted as a single incorporation fee, which understates what a company actually needs to spend in its first year. This article sets out the full 2026 cost stack, official fee by official fee, plus the ongoing costs that follow incorporation.

Companies House incorporation fees

From 1 February 2026, Companies House charges the following to incorporate a new company:

• Digital incorporation: £100 - the standard, fastest route, filed online.
• Paper incorporation: £124 - filed by post, slower and more expensive.
• Same-day digital incorporation: £156 - for founders who need the company registered on the same working day.

For almost every founder, digital incorporation at £100 is the right choice. Paper filing costs more and takes longer, and same-day filing is only worth the premium if there is a genuine deadline (a contract, a bank requirement, a completion date) that depends on it.

Confirmation statements: the recurring cost

Incorporation is a one-off cost, but a confirmation statement is filed every year for the life of the company. From 1 February 2026:

• Digital confirmation statement: £50 per 12-month payment period. This fee covers unlimited confirmation statements within that 12-month period, so if the company's details change more than once during the year, there is no extra Companies House fee for filing again.
• Paper confirmation statement: £110 per filing.

Missing this filing within 14 days of the review period ending is a criminal offence for directors and can lead to the company being struck off, so this is not a cost worth cutting corners on.

Registered office costs

A UK limited company must have a registered office address, and since March 2024 that address has to meet an "appropriate address" test: a physical UK location that can receive and acknowledge documents, meaning a PO Box alone no longer qualifies. Options are:

• Use a director's home address (no direct cost, but exposes it on the public register - see our guide on keeping a director's address private).
• Use an accountant's address, if they offer this.
• Use a professional registered office service, which at Keystone costs £50 a month, including official post received and forwarded from 167-169 Great Portland Street, London W1W 5PF.

Accountancy and identity verification

Every trading company needs some level of accountancy support for annual accounts and Corporation Tax, which is charged at 25% on profits over £250,000, 19% on profits under £50,000, with marginal relief in between. Accountancy fees vary by provider and by how much bookkeeping the company needs, so we do not quote a fixed figure here, but it should be budgeted as an ongoing cost from year one.

Identity verification is now a mandatory cost of doing this properly too. Under the Economic Crime and Corporate Transparency Act 2023, new directors must verify their identity before incorporation from 18 November 2025, and existing directors and PSCs have a 12-month transition to do the same. Some formation providers, including Keystone, build the identity verification fee into their headline incorporation price rather than charging it separately later.

Optional: company secretarial support

Beyond the confirmation statement itself, many companies (particularly those run by overseas directors) choose ongoing company secretarial support: register maintenance, deadline tracking and filing of director or shareholder changes. At Keystone this is combined with the registered office for £70 a month rather than £50, an extra £20 a month for the compliance work most directors would otherwise have to do themselves.

DIY vs all-inclusive: comparing the real cost

Doing it yourself looks cheaper on paper. Filing directly with Companies House costs £100 to incorporate and £50 a year for the confirmation statement, a total of £150 in official fees. But that figure excludes a UK registered office if you do not have one, excludes the time spent understanding forms and deadlines correctly, and excludes the risk of a late or incorrect filing.

Keystone's UK Company Incorporation at £600 one-off is an all-inclusive alternative: it covers the Companies House incorporation fee, UK VAT, and identity verification fees, plus a structure review of how the company will be owned. It does not replace the registered office or ongoing secretarial costs below, but it removes the guesswork from getting the company formed correctly the first time. Full detail on how the pieces combine is on our pricing page.

First-year budget table

| Item | Cost |

|---|---|

| Digital incorporation | £100 (or £600 all-inclusive with Keystone) |

| Confirmation statement (year one) | £50 |

| Registered office (12 months) | £600 (£50/month) |

| Registered office + secretarial support (12 months, alternative) | £840 (£70/month) |

| Accountancy | Varies by provider |

| Identity verification | Included in Keystone's £600 incorporation fee; separate if filed directly |

A realistic first-year total for an overseas-owned company using a registered office and Keystone's all-inclusive incorporation, before accountancy, sits at roughly £1,250 (£600 incorporation, £50 confirmation statement, £600 registered office), or £1,490 if secretarial support is added in place of the standalone registered office.

Common questions

What is the cheapest way to set up a UK limited company?

Filing digitally direct with Companies House costs £100, but this excludes a registered office, identity verification support and any secretarial help, all of which most overseas directors still need separately.

Does the confirmation statement fee cover the whole year?

Yes. The £50 digital fee covers unlimited confirmation statements within that 12-month payment period.

Why does Keystone charge £600 rather than £100 for incorporation?

The £600 is all-inclusive: it covers the £100 Companies House fee, UK VAT and identity verification fees, plus a structure review, rather than charging these separately later.

Do I need a registered office if I use my home address?

You can use your home address as the registered office, but it becomes public on the Companies House register, and since March 2024 it must still meet the "appropriate address" delivery requirement.

Is identity verification an extra cost?

It is a mandatory requirement for directors and PSCs under the Economic Crime and Corporate Transparency Act 2023. Some providers charge for it separately; Keystone includes it in the £600 incorporation fee.

Get started

For a clear, fixed first-year cost with nothing hidden, start an enquiry on our contact page. A named UK-based specialist will reply within one working day with exactly what your company will cost to form and run.