If you’re planning to start a business in the United Kingdom, one of the most common questions you’ll ask is:
“How much does it cost to set up a Ltd company in the UK?”
The good news is that forming a Limited (Ltd) company in the UK is affordable, straightforward, and highly efficient.
Unlike many countries, the UK offers a business-friendly registration system, minimal paperwork, and a transparent cost structure that appeals to both residents and international entrepreneurs.
Let’s break down the complete cost of setting up an Ltd company, including registration, documentation, and ongoing expenses.
What Is an Ltd Company?
A Limited (Ltd) company is a legal business structure in the UK that separates your personal finances from your business.
It’s similar to an LLC in the United States, offering limited liability protection to the owners (shareholders).
This means if your company faces debts or legal issues, your personal assets remain protected — making it the most trusted and professional business structure in the UK.
💡 Related Reading:
👉 How to Register a Ltd Company in the UK as a Non-Resident
1. Company Formation Cost
The actual registration cost of forming an Ltd company in the UK depends on how you register and what services you use:
| Registration Method | Cost (Approx.) | Timeframe |
|---|---|---|
| Direct via Companies House (Online) | £12 | 24 hours |
| By Post (Paper Application) | £40 | 8–10 days |
| Through an Agent or Formation Service | £30–£100 | 24 hours (includes support & documents) |
✅ Tip: Most entrepreneurs use formation agents because they handle everything — from your company name check to official documentation — at a small extra cost.
2. Essential Documents & Setup Costs
When forming your Ltd company, you’ll need a few key documents and services that may add to your total setup cost:
| Item | Description | Approx. Cost |
|---|---|---|
| Registered Office Address (UK) | Required for all companies; can use a virtual address if you’re not UK-based | £100–£150/year |
| Unique Business Address(Optional) | For privacy protection, it keeps your home address off public records | £30–£60/year |
| Articles of Association | Usually included in the registration package | Included |
| Certificate of Incorporation | Proof of legal registration (provided by Companies House) | Included |
| Share Certificates | Confirms company ownership | Included |
If you’re registering from outside the UK, you can manage everything online — no need to be physically present.
3. Bank Account and Tax Registration
Once your company is registered, you’ll need:
- Business Bank Account:
Most UK banks require directors to be residents, but several fintech banks (like Wise, Revolut Business, or Tide) allow non-residents to open accounts.
Cost: Free or £5–£15/month - HMRC Tax Registration:
You’ll need to register for Corporation Tax within three months of starting business activity.
Cost: Free
4. Optional but Recommended Costs
To ensure your business runs smoothly and meets UK compliance standards, you may want to consider:
| Service | Description | Cost Range |
|---|---|---|
| Accountant or Bookkeeping Software | Helps manage taxes, VAT, payroll | £200–£500/year |
| Website & Domain | Essential for brand presence | £150–£300/year |
| Business Insurance | Protects your company legally | £100–£300/year |
5. Total Estimated Cost of Setting Up an Ltd Company
Let’s summarize the total cost:
| Category | Estimated Cost |
|---|---|
| Company Registration | £50–£100 |
| UK Address Service | £100–£150/year |
| Unique Business Address (optional) | £30–£60/year |
| Bank Account Setup | Free–£100/month |
| Optional Extras (Website, Accountant, Insurance) | £300–£700/year |
✅ Average Initial Setup Cost:
£100–£250 (Basic) or £400–£800 (with all services)
That means you can legally own a UK Ltd company for less than the cost of a smartphone — making it one of the most affordable company structures in Europe.
6. Can Non-Residents Form a UK Ltd Company?
Yes!
The UK allows 100% foreign ownership — you don’t need to be a UK resident or citizen to register a Ltd company.
You’ll just need:
- A valid passport
- A UK registered office address (can be virtual)
- Basic company details (name, director, shareholder info)
Formation services like Corpulate.com help non-UK residents set up their Ltd companies easily, with all compliance handled online.
Final Thoughts
Setting up a Ltd company in the UK is affordable, fast, and globally accessible.
With a small budget of around £100–£250, you can create a professional business entity with strong credibility and limited liability protection.
Whether you’re based in Pakistan, the U.S., or Europe, forming a UK Ltd company gives you access to international clients, banking, and trade opportunities.
If you’re ready to begin, Corpulate.com can help you register your UK Ltd, provide a business address, and handle all legal paperwork — without any hidden costs.
Contact Us:
It costs as little as £12 online via Companies House or around £50–£100 through a formation agent.
Yes, non-UK residents can fully own and manage an Ltd company without visiting the UK.
Yes, all UK companies must have a registered office address — you can use a virtual office service.
Yes, annual filing fees and address renewals typically cost £50–£100 per year.