Breaking Down the Expenses: The True Cost of Registering a Company in the UK
The United Kingdom (UK) is one of the world’s most stable and fastest-growing economies. Recent statistics by the International Monetary Fund (IMF) rank it the 6th richest country on the planet, with a gross domestic product (GDP) of about 2.6 trillion pounds sterling. So, it’s understandable why the UK remains a prime investment destination for many entrepreneurs.
Now, registering is one of the key steps in setting up a UK business. And as you might expect, there are cost implications to contend with.
Below is a breakdown of the total expenses of registering a company in the United Kingdom.
Cost of Registering a Company in the UK
One of the frequently asked questions by aspiring investors in the United Kingdom pertains to the associated set-up fees. Part of these fees include business registration. But just how much does it cost to register a company in UK?
The cost of registering a new company in the UK ranges from £12 to £100. The eventual figure will depend primarily on the type of company structure in place.
For instance, companies limited by guarantee attract around £50.00 in registration fees. The same rates apply to charity organizations as well as property management firms.
On the other hand, registering a company limited by shares costs around £30.00 for UK residents and up to £120.00 for non-UK residents. Limited liability partnerships attract a registration fee of around £50.00, £10.00 higher than that of public limited companies.
The Benefits of Getting Your Company Registered In the UK
Operating a duly-registered company offers unhindered access to growth resources provided by both the government and major financial institutions. These include but are not limited to capital financing, incentives, and tech hubs.
Registering your company in the UK also gives it higher credibility. Most business stakeholders – including customers, suppliers, and even managers – would be wary of dealing with an unregistered entity.
Last but not least, registering your business is a statutory requirement necessary to get up and running. Even if you plan to operate a sole proprietorship or partnership, in which case you’re not required to register with Companies House, you’ll still need to register the business with Her Majesty’s Revenue and Customs (HMRC). This ensures you’re operating a legal entity in addition to being able to remit your taxes.
Things to Remember Before Registering Your Company in the UK
Before you begin filling out the necessary company registration forms, it’s important to check if your business requires special licenses and permits. Next, determine the need for insurance.
Also, note that there may be additional rules depending on the nature of your business. Companies commonly subjected to special regulations include;
- E-commerce stores
- At-home businesses
- Businesses dealing in imports and/or exports
- Businesses that collect and/or store personal information
Requirements for Registering a Company in the UK
You’ll need to supply the below information to get your company registered in the UK;
- Your mother’s maiden name
- Your father’s first name
- Birthplace
- Passport number
- National Insurance (NI)
- Company name
- Company address
- At least one director (can be a UK or non-UK resident)
- At least one shareholder (can be an individual shareholder or another company)
Procedure for Registering a Company in the UK
The most popular way to register your company in the United Kingdom is to go through Companies House, the country’s official companies’ registrar. Companies House provides both online-based and postal registration services.
Online Registration
Online company registration in the UK is faster and more affordable.
All you need to do is visit the Companies House website and fill out the application form IN01. Next, submit the application via the Internet Incorporation Service.
The entire procedure costs roughly £12.00, which you can pay with your credit or debit card or via your PayPal account. You may need to wait up to 48 hours for the registrar to approve your requests.
Another noteworthy benefit of online company registration in the UK is that you can use the same service to register for corporate tax and pay-as-you-earn (PAYE) tax. There are also fewer risks of error compared to applying for registration via post.
However, note that you can only apply online when seeking to register a private company limited by shares with model articles. Besides, your company must be share-limited and utilize ordinary articles of association.
Postal Registration
Registering a different type of company will make you better off going the postal route.
Start by obtaining and filling out a manual IN01 application form. Then, post back the filled form after paying around £40.00.
Allow up to 10 days for Companies House to process your application. There’s also the option of paying £100 to process your company registration request on the day you submit it.
For same-day services, your application must reach Companies House before 3:00 pm. You must also indicate ‘same day service’ in the top-left corner of the envelope.
Registering your company by post in the UK is ideal if you cannot access a computer and/or internet connection. It also guarantees more privacy. However, the process is costlier despite being much slower.
Wrap Up
Registering a company in the United Kingdom lets you access financial incentives and gives your business a professional touch. And as you might have realized, the registration process is much easier than you could imagine.