Cheapest Way to Register a Company in the UK (2026)

You’d think registering a company would be expensive and complicated. It’s neither — the cheapest way to register a company in the UK costs £50 and takes about 24 hours. But the formation industry is full of upsells, and knowing what you actually need versus what’s padding saves you real money. Here’s the honest breakdown.

The cheapest way to register a company: Companies House direct (£50)

Go to gov.uk and register directly with Companies House. The fee is £50 for online incorporation (standard, usually within 24 hours) or £71 by post (8–10 days — don’t). You’ll need:

• A company name (check it’s available and doesn’t infringe trademarks — search Companies House and the Intellectual Property Office)
• A registered office address in the UK (this goes on the public record)
• At least one director (you) and one shareholder (can also be you)
• Details of shares (100 £1 ordinary shares is the standard simple setup)
• A SIC code describing your business activity
• Articles of association (use the model articles — don’t overthink this)

That’s it. Fill in the form, pay £50, and you’re a limited company. The whole thing takes 20–30 minutes if you have the details ready. There is genuinely no cheaper legitimate way — anyone offering “free” incorporation makes money elsewhere (usually by selling you a registered address service or accounting upsells).

Formation agents: when they’re worth it (and when they’re not)

Companies like 1st Formations, Crunch, and Quality Company Formations offer packages from around £13 to £100+. How can they be cheaper than Companies House direct? They can’t — the £50 fee still applies; their headline prices either exclude it (read the small print) or bundle it with extras.

Formation agents are worth considering for one reason: the registered office address. Your registered address appears on the public Companies House record — visible to anyone. If you work from home and don’t want your home address public, agents offer a London registered address service (£30–£100/year typically). That’s a legitimate privacy purchase. Beyond that, their “extras” — printed certificates, company seals, “free” domain names — are mostly tat.

My advice: incorporate direct via gov.uk for £50. If you need address privacy, buy just the registered office service separately. Don’t buy bundles.

The hidden costs nobody mentions upfront

The £50 incorporation is the cheap part. Budget for the real costs of running a limited company:

• Confirmation statement: £34/year to Companies House (confirms your company details annually — mandatory).
• Accounting: £50–£150/month for an accountant, or £10–£30/month for software if you DIY (FreeAgent, Xero). Limited company accounts are more complex than sole trader — most owners use an accountant, and it’s usually worth it.
• Corporation tax: 19–25% on profits (19% up to £50k profit, marginal relief to £250k, 25% above). Plus personal tax on what you extract.
• Business bank account: Many are free initially; budget £0–£10/month.
• Registered address service: £30–£100/year if you use one.

First-year realistic total: £50 incorporation + £34 confirmation + accounting (£600–£1,800) = roughly £700–£2,000 to run properly. The company itself is cheap; running it correctly isn’t free. Factor this into the sole trader vs limited company decision — below ~£30k profit, sole trader is often simpler and cheaper overall.

What about “dormant” companies?

If you’re registering a company “just in case” for the future, you can keep it dormant — no trading, minimal filings (annual confirmation statement + dormant accounts). Costs about £34/year plus your time. It’s cheap, but don’t register companies speculatively without reason — an unused company still needs its filings, and forgotten filings mean fines and eventually strike-off.

Name and trademark: the £200 mistake

The Companies House name check only confirms no identical company name exists. It doesn’t check trademarks. If you build a brand on a name someone else trademarked, you can be forced to rebrand — new name, new domain, new everything. Before committing, search the IPO trademark database (free). If the name matters to you, trademarking it costs £170–£200 and is worth serious consideration once the business has legs.

After incorporation: the first-week checklist

1. Open a business bank account (never mix personal and company money — it’s a legal requirement in spirit and a practical one always).
2. Register for Corporation Tax with HMRC (happens semi-automatically, but confirm).
3. Set up accounting software or hire an accountant.
4. If you’ll have employees (including yourself on payroll), register as an employer with HMRC.
5. Consider VAT registration if you’ll exceed £90,000 turnover — see our VAT guide.
6. Get business insurance sorted.

The bottom line

Same-day vs standard incorporation

Companies House offers a same-day incorporation service (£78) if you file before 3pm — useful if a contract or client deadline demands it today. For everyone else, the standard £50 online service (usually processed within 24 hours, often much faster) is the sensible choice. The postal £71 option exists for edge cases; there’s no reason to use it in 2026. One timing tip: think about your accounting year-end before incorporating. Your company’s year-end defaults to 12 months after incorporation — choosing a month-end near incorporation keeps the first accounting period tidy. It’s a small detail your future accountant will thank you for, and it’s free to get right on day one.

Do you actually need a limited company yet?

The cheapest incorporation is the one you don’t do prematurely. Ask: are profits likely to exceed £30,000 soon? Do clients require limited-company status? Are you taking on meaningful liability (leases, stock, employees)? If the answers are no, a sole trader setup — free, ten minutes with HMRC — does everything you need. Many successful businesses trade as sole traders for years before incorporating when the tax maths favours it. Incorporating early “to look professional” costs you £700–£2,000 a year in running costs for prestige you could get from a good website at a tenth of the price. Incorporate when the numbers say so, not when the ego does.

The cheapest way to register a company in the UK is direct via gov.uk for £50 — 24 hours, no middleman. Formation agents only earn their fee if you need a privacy address service. Budget beyond the £50 for the real running costs (accounting, confirmation statement, tax), check trademarks before falling in love with a name, and don’t incorporate until the business justifies it — there’s no prize for having a limited company and no revenue.