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If you’re wondering how much it costs to create a limited company and run it smoothly, you’re in the right place. 🎉
Setting up a limited company is surprisingly affordable, and the process itself is pretty straightforward. But beyond the setup fee, there are a few other costs to keep in mind.
In this guide, we’ll break down everything you need to know. From registering your company to accounting, staffing, insurance, and beyond, we’ll help you figure out what you actually need to spend (and what you can skip). ✅
Let’s start with the most common question: how much does it cost to create a limited company from scratch?
It’s just £12 to register your limited company online with Companies House. And the even better news? The process is quick and simple, and most companies are approved within 24 hours. 🙌
Prefer a helping hand? You can use a company formation agent to handle the process for you, which typically costs between £10 and £100.
And if you’re considering the DIY route, check out our guide on setting up a limited company.
While the Companies House fee is low, it’s not the whole picture. To really answer how much does it cost to create a limited company, we also need to look at startup expenses.
To help you calculate the true cost of creating a limited company, here are a few common startup expenses:
Whether you’re a freelance designer or starting a cleaning business, you’ll need the right tools to help you get going.
Here are a few things you might need:
What does it cost? Well, it really depends on the nature of your business and what you need. But you can expect to pay anywhere from £100 to £3,000.
You’ll also need to think about your online presence. That means:
What does it cost? Anywhere from £60 up to £4,000 if you’d like to hire a web designer.
If you’re just starting up, you’ll need to get your brand name out there. That might mean investing in marketing and branding. Think about:
What does it cost? Anywhere from £50 to £2,000.
Some businesses (like food vendors, trades, childminders, or financial services) may need specific licences to operate legally. 📑
What does it cost? The cost of this varies widely, so don’t forget to familiarise yourself with the requirements in your industry.
Business insurance isn’t always legally required, but it’s often recommended. You might need to consider:
What does it cost? Anywhere from £10 to £30 per month for basic cover (so around £120 to £360 per year).
Think about hiring staff? There’s more to costing than just paying their salary. Here’s what you’ll need to factor in:
What does it cost? It depends on their salary, but expect to add around 15% to 20% in employer costs.
While they might seem like big expenses, these costs are key to helping your company grow. Just make sure you’re ready for the responsibilities that come with it.
Once you register your company, Companies House will send you:
But depending on your setup, you might also need:
Solicitors aren’t essential, but can be helpful for more complex arrangements – something to keep in mind when calculating how much it costs to create a limited company properly. ⚖️
Once you’re set up, there are a few recurring costs to keep in mind:
Now, let’s talk about tax – our favourite subject. 😆
Running a limited company means you’ll need to:
And yes, getting this wrong can lead to penalties. So, what are your options?
This is great if you just want help once a year. You hand over your accounts, and a TaxScouts accountant files everything for you, whether you’re a sole trader or running a limited company. 🤝
Best for: freelancers, contractors, sole traders, or small business owners who just need help at year-end.
Plus, accountant fees are a tax-deductible business expense, so you can claim them back on your tax return.
Prefer to have an accountant on hand all year round? You’ll need to pay a little more, but you’ll also get access to:
Best for: growing businesses or anyone with employees
Here’s a rough breakdown:
| Things you’ll need | Estimated costs |
| Company registration (online) | £12 |
| Equipment/software | £100 – £3,000 per year |
| Website + domain | £60 – £4,000 per year |
| Marketing/branding | £50 – £2,000 per year |
| Insurance | £120 to £360 per year |
| Hiring employer costs | Varies |
| Tax filing/accounting | £169 with TaxScouts, upwards of £500 elsewhere |
Creating a limited company doesn’t have to break the bank. The initial setup fee is low, and while other costs can add up, they’re all part of getting your business off the ground.
Some expenses, like hiring or tax advice, are investments that pay off. They help your business run smoothly, stay compliant, and avoid surprises.
At TaxScouts, we offer both one-off tax returns and monthly support for limited companies. We’ll match you with an accredited accountant to handle the tricky stuff, so you can focus on running your business.
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