The United Kingdom has accessed as one of the most business-friendly countries in the world as it has a consistent economy with a strong legal system. Additionally, the UK has quick online registration processes which allows for even more ease for potential business owners. Entrepreneurs, therefore, come to the UK for business opportunities from every corner of the globe.
If you are considering international business expansion to the UK, or even starting a new business, registering a UK Limited Company (LTD) is likely one of the most intelligent opportunities you will come across.
Before you start, however, you may ask yourself, “How much is it to set up a UK LTD company?”
This is a complete Bizstartz guide which outlines each and every single one of the costs from the registration fees, optional service costs, maintenance costs, and possible hidden costs you need to know.
1. Understanding the UK LTD Company Structure
Before explaining the costs, it is important to explain what a UK LTD company is, and why it is one of the more prominent business structures among entrepreneurs and foreign investors.
A Limited Company (LTD) is a legal entity which is registered with Companies House, the official UK company registrar. As soon as you get registered, your company can legally conduct business independently of its owners (shareholders) and directors. Forming a Limited Company is less risky than operating as a sole trader or freelancer.
This is because Limited Companies offer Limited Liability protection. This means if a Limited Company fails, your personal assets won’t be taken to cover business debts.
Key features of a UK LTD Company
- Limited Liability means you are not responsible for the debts of your business
- Separate legal identity of your business is recognized. It can own assets, sign contracts, and perform legally enforceable contracts.
- Tax Efficiency. The UK’s Corporation Tax is lower than most developed countries.
- Professional image and credibility is gained when you register your business in the UK.
- Filing systems and software allow you to manage your business and UK Company from anywhere in the world.
Who should form a UK LTD Company?
- Foreign business owners who are expanding legally to UK and EU market
- New businesses looking to establish EU credibility
- Service Providers/Consultants
- E-commerce Business Owners: Amazon, eBay, and Shopify
LTD Companies as flexible, prestigious, and simple business structures in the UK, do come with setup and ongoing maintenance costs.
2. The Basic Cost to Register a UK LTD Company
The good news is that forming a UK company is very affordable compared to most countries. The Companies House, which handles all company registrations, charges minimal fees for the actual incorporation process.
a. Companies House Registration Fee
| Filing Method | Cost | Processing Time | Notes |
| Online filing (via Companies House or agent) | £12 | Usually 24 hours | Cheapest and fastest method |
| Postal filing (Form IN01) | £40 | 8–10 days | Slower and less convenient |
| Same-day service | £100 | Same day (if filed by 3 PM) | Ideal for urgent registrations |
Most entrepreneurs prefer online filing due to its simplicity and quick turnaround.
When you use a formation agent like Bizstartz, this fee is already included in the package, saving you the trouble of paying separately.
3. Extra Costs When Setting Up Your UK LTD Company
Although the fees by Companies House are inexpensive, there are other required and non-required expenses founders need to keep in mind. These are the costs explaining your entire setup budget, particularly for non-UK residents.
a. Registered Office Address
All UK companies must have a registered office address in the UK.
This address will be public, and it will be the address for any correspondence with HMRC (UK tax authority) and Companies House.
If you are outside the UK, you will have to engage a professional and use their service to meet this requirement.
Types of Registered Office Services
Basic Address Service:
Used for receiving only the government correspondence and compliance mail.
This service is good for small online businesses and startups.
Price: £30-£80 a year.
Virtual Office Service:
This service is really good for business owners who want to appear to be operating from the UK.
It has mail forwarding and scanning features and it allows for business correspondence to use the address.
Price: £100-£250 a year.
Premium Business Address (Central London or Tier 1 location):
Targeted for businesses or companies that seek to have an address in a more exclusive area (e.g, London EC1, Canary Wharf, Manchester).
Price: £200-£400 a year.
Bizstartz provides professional UK registered offices that fulfill legal requirements, safeguards your privacy, and presents your firm as dependable and trustworthy to customers all over the globe.
b. Directors and Secretaries Service Address
In the UK, all registered directors and company secretary details must, by law, include a service address that is made publicly accessible.
For privacy and confidentiality issues, most business proprietors prefer not to use their domestic addresses.
Cost: £20–£60 annually per director
Aim: This allows domestic addresses to remain undisclosed and keeps legal requirements on address disclosure.
c. Company Formation Service Fee
Receiving “professional company formation service” requests is common, particularly by overseas founders. They prefer to have all the formation service details managed end to end.
This service includes, but is not limited to, the following:
- Company name availability check
- Preparation and submission of formation documents
- Digital Certificate of Incorporation
- Share certificate and memorandum of association
- Companies House registration
- Registered UK address (optional), VAT registration, and bank account setup (optional add-ons)
Typical Cost Breakdown
| Package Type | What’s Included | Price Range |
| Basic Formation | Company registration + digital documents | £50–£80 |
| Standard (Non-Resident Package) | Registration + UK address + mail forwarding | £150–£300 |
| Premium International Package | Includes address, tax registration, bank account, accounting setup | £400–£600 |
Bizstartz provides all-in-one UK company formation packages for non-UK residents, allowing you to manage everything remotely.
d. Opening a Business Bank Account
Once you’ve established your company, you will need a UK business bank account so you can receive payments and handle your business transactions.
Regarding options, if you are a non-UK resident, you can open an account remotely with digital banks including Wise Business, Revolut Business and Tide. These options are great for eCommerce businesses and online service providers.
As for costs, there is usually no charge or you will pay around £5- £15 each month.
With traditional banks like Barclays, HSBC and Lloyds, you usually will need to pay a visit or have a presence in the UK which is best for businesses with local operations.
They will charge set up fees between £100- £300 and monthly between £10 to £25.
Bizstartz has partnerships with top UK digital banks and can assist foreign entrepreneurs open business accounts without needing to come to the UK.
e. Accountant or Bookkeeping Services
Once your company is registered, you’re legally required to keep financial records, file annual accounts, and submit corporation tax returns.
You can either manage this yourself (if experienced) or hire an accountant — which is highly recommended.
| Type of Accounting Service | Description | Average Annual Cost |
| Basic bookkeeping | Record maintenance, invoices, and expenses | £200–£400 |
| Annual accounts & tax filing | Preparation and submission to HMRC | £400–£800 |
| Full-service accounting | Bookkeeping, VAT, payroll, and compliance | £800–£1,200 |
At Bizstartz, we provide cost-effective bookkeeping and annual filing packages designed specifically for non-resident business owners.
f. VAT Registration (Optional but Recommended)
If your annual turnover exceeds £90,000, VAT registration becomes mandatory.
However, even if you’re below the threshold, many companies voluntarily register to look more professional or to trade on platforms like Amazon UK and eBay.
- VAT Registration Fee: £50–£150
- Processing Time: 2–4 weeks
- VAT Filing Service: £200–£400 per year (if outsourced)
Bizstartz can help your company register for VAT and manage quarterly submissions with ease.
g. Business Insurance
While not mandatory for every business, certain types of insurance are strongly recommended — especially if you work with clients, customers, or staff.
| Insurance Type | Purpose | Annual Cost |
| Public Liability | Covers injury or damage claims | £100–£300 |
| Professional Indemnity | Protects against client negligence claims | £150–£400 |
| Employer’s Liability | Mandatory if you have employees | £100–£250 |
Having insurance enhances your company’s credibility and may be required by clients or platforms (like Amazon).
4. Full Breakdown: Total UK LTD Company Setup Cost in 2025
To give you a realistic overview, here’s a detailed cost summary of forming a UK company.
| Expense | Description | Estimated Cost |
| Companies House registration | Mandatory incorporation fee | £12 |
| Registered office address | Legal UK address for your company | £50–£200 |
| Service address (director privacy) | Keeps home address confidential | £30–£60 |
| Formation service | Professional registration assistance | £100–£400 |
| Business bank account | For managing business funds | £0–£200 |
| Accounting/bookkeeping | Annual compliance and record keeping | £400–£1,200 |
| VAT registration | Optional for eCommerce sellers | £50–£150 |
| Business insurance | Optional but recommended | £100–£400 |
Total Estimated Cost
- For UK Residents: £150 – £300
- For Non-Residents (Full Setup): £400 – £1,000
This makes the UK one of the most affordable jurisdictions in Europe to start and maintain a company.
5. Ongoing Annual Costs and Renewals
Once your company is formed, there are yearly renewal and compliance costs to maintain your good standing with Companies House and HMRC.
| Requirement | Description | Frequency | Cost |
| Confirmation Statement | Annual filing with Companies House | Once per year | £13 |
| Annual Accounts Filing | Financial statement submission | Once per year | £200–£500 |
| Registered Address Renewal | Keep your UK address active | Annually | £50–£200 |
| Accounting/Bookkeeping | Ongoing financial management | Monthly or annually | £400–£1,200 |
| Tax Return Filing | Corporation tax submission | Annually | £200–£400 |
Bizstartz offers annual management and compliance plans that cover all filings, renewals, and bookkeeping, ensuring your company stays fully compliant year-round.
6. Why You Should Form Your UK LTD Company With Bizstartz
As a non-resident, the complexities involved with forming a UK company are the legal requirements, documentation and taxation. Bizstartz steps in and makes all of this much easier for you.
End-to-end UK company formation services that we provide includes:
✅ Company registration with Companies House
✅ UK Registered Office and Service Address
✅ Mail forwarding and document handling
✅ Business bank account setup
✅ Bookkeeping and accounting service
✅ VAT and tax registration
✅ Trademark registration
✅ Ongoing compliance and annual filing support
Our overseas clients value the ability to establish a UK company without needing to visit the UK and having complete professional assistance from our staff.
Whether you are an Amazon seller, eCommerce entrepreneur, freelancer, or investor, Bizstartz seamlessly integrates and services the setup, operation, and ongoing maintenance of your UK LTD company.
7. Final Thoughts
Among the available options in Europe, establishing a UK LTD company is one of the most inexpensive and efficient ways to set up your business.
The initial setup is most competitive, starting from £150, and even the most complete non-resident setup rarely exceeds £1,000.
For low costs you also receive:
- Access to the UK and EU Market
- Globally Respected Business Identity
- Limited Liability on Personal Assets
- Flexible Tax Plans
- Full Online Business Management
If you are ready to get your UK business started today, Bizstartz will assist you during the entire journey, starting with company formation and continuing with ongoing compliance.
🚀 Get Your UK LTD Company with Bizstartz
For fast and simple compliant company registration visit Bizstartz.
Focus on business growth while our experts take care of your company setup, tax filings, and bank account setup.
👉 Get started today at Bizstartz.com.
