This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to company formation costs and statutory fees in the UK. Learn about Companies House incorporation charges, annual compliance fees, optional services such as registered office addresses, professional support costs, budgeting tips and regulatory fee changes effective from February 2026.
Starting a company in England and Wales involves a range of costs and statutory fees payable to Companies House and, where relevant, to third‑party service providers. Understanding these costs upfront helps founders, directors and advisers plan effectively and avoid surprises. This article explains the mandatory statutory charges associated with company formation, optional professional and compliance expenses that often arise at the outset, recent regulatory changes affecting fees, common budget items new companies should expect, and practical guidance on how to optimise costs while remaining compliant. Information is based on current official fee schedules and authoritative sources.
Statutory Fees for Company Incorporation
The principal statutory cost in forming a company is the Companies House incorporation fee. These charges are payable whether a company is limited by shares, limited by guarantee, or a limited liability partnership (LLP). The fee structure varies depending on the method of filing and service level chosen.
Incorporation and Registration
As of 1 February 2026:
- Standard online incorporation: £100 for digital filings via the Companies House service.
- Same‑day incorporation (software filing): £156 for expedited processing using approved commercial software.
- Paper filing: £124 for postal applications.
A successful incorporation fee covers the official registration, allocation of a company number and issue of a certificate of incorporation. It does not include any additional services such as registered office provision or compliance support.
These changes reflect a significant increase in the standard online fee (from earlier levels) as part of a broader shift in the registrar's role, including enhanced verification processes under the Economic Crime and Corporate Transparency Act 2023.
Other Statutory Fees
In addition to the incorporation fee, companies should anticipate other statutory charges associated with company administration and compliance:
- Confirmation statement fee: £50 (online) or £110 (paper) each year - a legal requirement to confirm the accuracy of public register data.
- Change of name: £20 (online) or £30 (paper); £85 for same‑day digital service.
- Registration of a charge: £14 (digital) or £24 (paper).
- Voluntary strike‑off: £13 (digital) or £18 (paper) to close the company.
These fees are charged per transaction and must be factored into ongoing costs.
Optional Costs and Professional Services
While statutory fees are fixed by law, many new companies incur additional costs at the formation stage. These optional expenses support compliance, governance, branding and operational readiness.
Formation Agents and Professional Support
Many founders use a company formation agent to complete and submit incorporation documents on their behalf. Agents typically charge:
- Formation service fee: £15–£100 or more depending on services (agents often include Companies House fees in their package).
- Professional support costs: Accountant, solicitor or company secretary fees for bespoke advice and tailored documentation can range from £100 to several hundred pounds, depending on complexity and expertise required.
Using an agent can reduce administrative burden and help avoid errors in complex structures, though total costs depend on the provider and services selected.
Registered Office and Service Addresses
Every UK company must maintain a registered office address for statutory correspondence. Directors also must supply a service address. If you do not use your own address, providers can offer virtual office or registered office services:
- Annual address service: Typically £20–£60 per year, depending on provider and level of service. These arrangements can protect personal privacy and ensure reliable delivery of statutory mail.
Additional Setup Costs
Other common expenses at the outset include:
- Business bank account setup: Often free but may have ongoing fees or minimum balance requirements; essential for proper corporate finance management.
- Company seal, share certificates and minute books: While not mandatory, many companies incur nominal printing and stationery costs for formal documentation.
- Domain name and branding: Costs vary significantly depending on provider and scope of branding.
These costs are not statutory but contribute to overall startup expenditure.
Budgeting for Ongoing Compliance
Forming a company is just the beginning. Budgeting for ongoing statutory compliance costs is critical:
- Confirmation statements are annual and incur a statutory fee each year.
- Registered office services and professional support may be renewed annually.
- Companies House filings in response to changes in directors, registered office or share structure will attract additional fees.
Careful planning helps ensure that statutory deadlines are met and compliance obligations are not overlooked.
Time Limits and Fee Triggers
Statutory fees are generally triggered by specific filings or transactions. For example:
- The confirmation statement fee is due at least once every 12 months on the anniversary of incorporation or anniversary of the previous statement.
- Linked filings such as change of registered office or appointment of directors attract fees at the time the relevant Form is delivered.
Late or incorrect filings do not exempt the company from fees and may lead to enforcement attention or compliance enquiries. Budgeting for timely payments is therefore essential.
Risks and Considerations
Non‑Compliance
Failure to pay statutory fees or file required documents on time can have legal consequences, including:
- Late filing penalties from Companies House.
- Potential compliance notices or enforcement action if the company record becomes inaccurate.
Keeping accurate records, monitoring due dates and ensuring funding is available to cover statutory costs helps avoid these risks.
Unexpected Costs
Company formation may involve unexpected charges if:
- Special documentation or amendments are required after incorporation.
- Complex structures require bespoke legal advice.
- Identity verification or additional compliance (e.g., beneficial ownership) results in extra administrative steps.
Allocating a contingency budget can mitigate financial surprises.
Practical Steps to Manage Costs
- Understand the statutory fee schedule: Familiarise yourself with current Companies House fees and recent changes effective from February 2026.
- Plan for recurring obligations: Build ongoing compliance costs such as confirmation statements into your business plan.
- Compare service providers: Evaluate formation agents, registered office providers and professional advisers to find cost‑effective options that suit your needs.
- Use online services where possible: Digital filings are typically cheaper and faster than paper alternatives.
- Monitor statutory deadlines: Avoid late filings and additional costs by tracking important dates and setting reminders.
Common Questions from our Readers
Is VAT charged on statutory formation fees?
Statutory fees payable to Companies House are not subject to VAT, but professional services from agents or accountants may be.
Do I have to use a formation agent?
No. You may register directly with Companies House. Using an agent is optional and reflects the level of administrative support you want.
Can fees change suddenly?
Yes. Companies House periodically reviews and updates its fee schedule; changes effective from 1 February 2026 increased many core fees. It is important to check the current official fee list before filing.
Key Takeaways
Company formation costs and statutory fees in the UK consist of mandatory charges set by Companies House for incorporation and other filings, plus optional expenses for professional support, registered office services and ongoing compliance. As of February 2026, the standard online incorporation fee is £100, same‑day filing is £156, and paper filing is £124. Annual confirmation statements and other filings also attract statutory fees. Planning for both one‑off and recurring costs, choosing efficient filing methods and considering value‑for‑money service providers can help founders manage expenses while ensuring legal compliance and operational readiness.
