So how much does it cost to simply set up a limited company in the UK? We’ll discuss the initial costs here in this article.
What Is A Limited Company?
A limited company is a legal entity that has been established by individuals and is separate from those individuals’ personal assets and income. It’s also known as a private limited company.
Why Do I Need One?
If you are starting a business, then you may well start as a sole trader and choose to stay a sole trader. However, there are some advantages to registering as a limited company. Firstly, you’ll be able to take advantage of any tax relief available to companies.
Secondly, you only pay corporation tax on your profits. Thirdly, you’ll have limited liability which means your personal assets and finances are protected. Finally, your company name will be legally protected once registered.
How Much Does Setting Up A Limited Company Cost?
There are two main ways to set up a limited company – by registering with Companies House or using a formation agent, like us, The Formations Company.
All companies, even the ones registered through a formation agent, are registered with Companies House. However, with a formation agent, like us, you will get a wealth of advantages that you wouldn’t get with Companies House, here are the three main ones.
Firstly, our company formation bundles are cheaper than Companies House and nearly all other formation agents as they start at just £9.99. Companies House charges £12 for a limited company formation and most other formation companies charge the same for their cheapest formation bundle, if not more!
Secondly, if you need any other services, such as a registered office address, a business bank account, an accountant, or anything else you could need, we’ve scoured the marketplace and picked the best services for you to choose from at preferential rates and even included in one of our bundles.
Finally, you’ll get lifetime support from our experts, they’ll be on hand to answer any questions you might have to get your company set up quickly, efficiently, and professionally.
So there you have it, the cost of setting up a limited company is not much and you can even save more money on anything else you need to help build and grow your company.
Check out this article for more information on other costs that you should consider when starting a limited company in 2022
How To set up A Limited Company?
To set up a limited company is simple, well, with us anyway. Our process has been trusted and refined for over 12 years and you can set up your limited company in a matter of 5 simple steps :
- Choose a company name – Use our free company name checker to see if the name you want for your limited company is available to register.
- Select a formation bundle – Choose from one of our formation bundles that suits your needs.
- Decide if you need any extras – Pick any extras you might need to go with your formation bundle
- Checkout – Purchase your formation bundle
- Complete your application – Once you’ve purchased your bundle, all you need to do is completed the straightforward application.
And that’s it! Your application will be sent off to Companies House and your company could be formed by the same time the very next day!
In conclusion, setting up a limited company is cheap and it could save you money in the long run
If you decide to form your limited company with us, not only will you get the benefits of actually having a limited company, like tax savings etc, but you will also save money when you set up your company and on any other services you might need.
Click below to take the first step in setting up your limited company with us today!