Setting up a private limited company in the UK is a significant milestone for entrepreneurs looking to structure their business professionally. While the process is streamlined, understanding the associated costs can help you plan effectively. This blog will walk you through the costs of registering a limited company, the benefits, and some key aspects to consider when forming your company.
What is a Private Limited Company?
A Private Limited Company (Ltd) is a type of business structure where the company is legally separate from its owners, and the liability of its shareholders is limited to the value of their shares. It provides credibility, a clear structure, and potential tax benefits compared to being a sole trader. If you’re considering a business structure that offers protection and scalability, a Private Limited Company is an ideal choice. Similarly, if you’re exploring alternative structures like LLP company registration, it offers limited liability benefits for partnerships, making it a flexible choice for joint ventures.
What are the Requirements for a Private Limited Company?
Before registering your company, there are a few important requirements you need to be aware of:
1. Unique Company Name: Your company name must be unique and not already registered. You can use our Company Name Search tool on our website to check the availability of your desired name quickly.
2. At least One Director: A limited company must have at least one director who is responsible for running the company.
3. Registered Office Address: You’ll need a UK address for official correspondence. Our Registered Office Address service is available if you prefer to keep your personal address private.
4. Memorandum and Articles of Association: These are essential documents that outline how the company will be run and the responsibilities of its shareholders.
5. SIC Code: You’ll need to provide a Standard Industrial Classification (SIC) code that describes your company’s business activities. We assist with choosing the correct SIC code for your business.
Cost for Registering a Private Limited Company –
The cost of registering a private limited company can vary with added features, but the basic government registration fee is £50.00. However, when choosing FormationsHunt, you get far more than just registration—you receive bundled services that add real value and save you both time and money.
Why Choose Us Instead of Companies House?
While registering directly with Companies House may seem cheaper upfront, you only get the basic registration. If you need additional services like a registered office address, privacy protection, or legal documentation, you’ll have to source these separately—each adding to the cost and complexity of the process. With FormationsHunt, we combine these services into affordable packages, so you get everything you need from one trusted provider.
Why Choose Our Packages and How It Saves You Money?
Each of our packages is designed to save you from having to purchase individual services that would cost significantly more if bought separately. Here’s how:
1. Digital Package (£52.99): For just £2.99 more than the government fee, you get not only the company registration but also digital support that helps you streamline the process quickly.
2. Privacy Package (£69.99): Our Privacy Package includes privacy protection like a Registered Office Address, saving you from paying separately for this essential service, which alone could cost upwards of £39.99 + £29.99 annually.
3. Professional Package (£99.99): This package includes legal documents, compliance guidance, and business consultation, all of which would cost much more if sourced independently. Legal templates alone can range from £50 to £100 per document.
4. All-Inclusive Package (£159.99): For those wanting a complete solution, this package includes everything from registration to business setup essentials, including mail forwarding, VAT registration, and more. Individually, these services could easily total over £700, making this package a highly cost-effective option.
By choosing our packages, you save both money and time, avoid the hassle of dealing with multiple service providers, and ensure your business is set up for success from the start.
Applicable Fees for Important Registrations
Once your company is registered, you might also need to handle other registrations. Here are some key additional costs you might incur:
1. VAT Registration: £39.99 – If your turnover exceeds £85,000, registering for VAT is compulsory, and we can assist you with this.
2. PAYE Registration: £29.99 – Necessary if you plan to hire employees.
3. Data Protection Registration: £108 – This applies if your business handles personal data.
4. Confirmation Statement Filing: £49.99 – This is an annual requirement to update your company’s information with Companies House.
5. Registered Office Address Service: £39.99/year – It helps to keep your personal address private.
Additional Fees for Delays in Filing Forms
It’s important to file company documents on time, especially with Companies House, to avoid late fees. Missing deadlines can result in additional penalties, such as:
- Late filing of confirmation statements or annual accounts can incur fees ranging from £150 to £1,500, depending on the length of the delay.
- Failure to submit confirmation statements: You may face penalties or even the striking off of your company from the Companies House register.
When you are using our services, we can ensure you never miss a deadline with our Annual Compliance Monitoring service.
Additional Costs to Consider for a Private Limited Company-
While the initial registration fee is straightforward, there are several other hidden costs that business owners might not immediately anticipate:
- Accounting fees: Depending on your business’s complexity, accounting fees can vary significantly. Small businesses can expect to pay between £50 and £200 per month for bookkeeping and accounting services.
- Business insurance: This varies depending on your industry but can range from £100 to £1,000 annually.
- GDPR Compliance: If your business handles personal data, you may need to register with the Information Commissioner’s Office (ICO), which costs £40 or £60 depending on your size.
These ongoing costs are vital to running a compliant business and must be factored into your budget. We can assist you with some of these services, such as providing registered office addresses, filing reminders, and ensuring compliance with GDPR.
How to Save on Company Registration Costs with FormationsHunt
One of the biggest advantages of registering through FormationsHunt is the ability to bundle services and save on costs. Instead of dealing with multiple providers, we offer packages that include everything from company formation to annual compliance at a competitive rate.
- Digital Package: £52.99 includes online company registration, digital documents, and ongoing support.
- Professional Package: £99.99 includes everything in the Digital Package plus VAT registration, PAYE registration, and more.
- All-Inclusive Package: £159.99 includes every essential service, saving you time and money while giving your company the best start possible.
- Non-UK Resident Package: Tailored for international clients, for £169.99 this package covers company formation and essential services like a registered office address, director’s service address, and mail forwarding, ensuring a smooth setup for those based outside the UK.
Conclusion
In conclusion, while the cost of limited company registration can vary based on the services you require, it’s crucial to choose a reliable formation service like FormationsHunt to ensure compliance and efficiency. Whether it’s selecting a name, handling SIC codes, or ensuring timely document submission, we make the process seamless and affordable.
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