A Private Limited Company is the most popular type of UK incorporation. However, few people know how much registration costs or how to go about setting up a limited company.
There are multiple means of setting up a limited company
There are various ways to register a private limited company depending on it’s nature. Before you register, there are a number of things you will need. These include a company name (paying attention to what is and isn’t allowed), an address, at least one director and shareholder. There are a number of agreements and documents that you may also need to complete. However, these will be highlighted during the relevant registration process. Although the technical; process of registering a company is fairly straightforward and cheap, finding the finance to get the ball rolling with a new company can be a different story
So, you’ve now got all your information together. But what are the various methods of registering/setting up a limited company and how much do they cost?
- If your company is limited by shares and uses standard articles of association (a document detailing how the company will operate), then you can register online. Registering online costs £15 and you can pay for by debit card, credit card or PayPal. It takes approximately 24 hours for the registration to go through. You can register your company by completing the IN01 form and sending it by post. This costs £40 and you can pay by cheque or postal order, and takes between eight to ten days to complete.
- You can also register by way of a company formation agent. Obviously, the costs of these agents can vary greatly, as can the services they provide. As with any service provider, you must use caution to ensure you are choosing the best agent for yourself. Although, what you may lose in payable fees you get back by having a better understanding of the registration process.
- Finally, there are a number of third party websites and software applications that will allow you to register electronically. Using software does have its benefits for you though. These include a greater visibility of the status of your registration and the receiving of your documentation. However, this is probably the more complicated method of registration. Before using any software, you’ll need to complete the online filing credit account application form. Once the approval for the software has come through, installation can begin. For smaller companies or those not familiar with the registration process, it may be better to go with one of the other three registration processes.
So ultimately the cost of registering your own private company varies greatly but at a minimum of £15 per registration. However, like all other business decisions, research and investigation is key to ensuring that the direction you choose is best for your new company.