Setting up a company in the UK is often described as quick and simple, and the mechanics of it are. What catches people out is not the incorporation itself but the costs and obligations that follow it, especially for founders managing everything from another country. This article sets out a realistic timeline, the real first-year cost stack, and the mistakes that come up most often.
A realistic timeline
Digital incorporation with Companies House is normally processed within 24 to 48 hours, provided your application is complete and any required identity verification has been done in advance. That headline speed is accurate, but it assumes the groundwork - company name checks, director and PSC details, a compliant registered office, a SIC code - is already sorted before you file. Founders who leave these decisions until the point of filing often lose more time to back-and-forth corrections than they save by rushing the application itself.
If you choose paper incorporation, expect a much longer wait, generally measured in weeks rather than days, which is one reason digital filing is the practical default for almost everyone setting up a company in the UK today.
The real first-year cost stack
The Companies House incorporation fee gets most of the attention, but it is only one line in the first year's costs. As of 1 February 2026:
- Incorporation (digital): £100 (£124 paper, £156 same-day digital)
- Confirmation statement: £50 per 12-month period (digital), covering unlimited statements within that period; £110 for paper
- Registered office: from £50 a month if you use a professional address rather than your own premises
- Company secretarial support: from £70 a month if you want confirmation statements, register maintenance and compliance reminders handled for you
- Corporation Tax: 19% on profits under £50,000, 25% on profits over £250,000, with marginal relief in between
Add these up over a year and the incorporation fee itself is a small fraction of what setting up and running a UK company actually costs. Founders who budget only for the Companies House fee are usually surprised later.
Keystone Secretarial packages the formation side into a fixed £600 UK Company Formation fee, which includes the Companies House cost, UK VAT and identity verification fees, plus a structure review, so there is one number to plan around rather than several unpredictable ones.
Common mistakes overseas founders make
Choosing the wrong SIC code. It is tempting to pick the first plausible-sounding code and move on. An inaccurate SIC code can cause friction later with HMRC, banks and credit checks, so it is worth taking the time to match your actual trading activity.
Using a home address and exposing it publicly. A registered office address appears on the public Companies House register. Overseas founders sometimes use a family member's UK address without realising it will be visible to anyone who searches the company, and that it needs to reliably receive and pass on official post. A professional Registered Office London avoids both problems.
Missing PSC duties. Persons with Significant Control must be identified and, under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), verified. Since 18 November 2025 this applies to new directors before incorporation, with existing directors and PSCs given a 12-month transition. Treating this as optional paperwork rather than a legal requirement is a common and avoidable error.
Ignoring confirmation statement dates. A confirmation statement is due within 14 days after each 12-month review period ends. Late filing is a criminal offence for directors and can eventually lead to the company being struck off. Founders based overseas, juggling different calendars and time zones, are particularly prone to losing track of this date unless someone is actively monitoring it. Keystone's Confirmation Statements service exists specifically to prevent this.
Weighing DIY against professional support
Some founders will always prefer to handle every step themselves, and for a straightforward, UK-resident, single-director company that can work well. The calculation changes once you add a second time zone, an unfamiliar registration system, and a set of deadlines that carry criminal liability for directors if missed. In that situation, the value of fixed pricing and a single point of contact tends to outweigh the modest saving of doing it alone, particularly in the first year when most of the mistakes above tend to happen.
Common questions
How long does setting up a company in the UK actually take?
Digital incorporation is usually processed within 24 to 48 hours once your application and identity verification are complete.
What does it really cost to set up and run a UK company in the first year?
Beyond the £100 to £156 incorporation fee, budget for a £50 confirmation statement fee, a registered office from £50 a month, and Corporation Tax once you start trading.
What is the most common mistake overseas founders make?
Missing the confirmation statement deadline is one of the most frequent and most serious, since late filing is a criminal offence for directors and can lead to strike-off.
Do I need a UK address to set up a company here?
Yes, every UK company needs a compliant registered office address, and PO Boxes cannot be used on their own since the March 2024 "appropriate address" rule.
Is identity verification compulsory now?
Yes. Under ECCTA, identity verification is mandatory for directors and PSCs, with new directors required to verify before incorporation from 18 November 2025.
Get it right the first time
Keystone Secretarial Services handles UK company formation and ongoing compliance for overseas founders, with fixed pricing and a named UK qualified lawyer who replies within one UK working day. Start your enquiry to avoid the mistakes above from day one.
This article is general information about UK filing requirements, not legal or tax advice. Requirements change - we will confirm what applies to your company before anything is filed.
