How Much Does It Cost to Incorporate in the UK?
Incorporation is the process through which a business enterprise undergoes registration to obtain the status of a limited company. It is a very critical issue in the United Kingdom due to the rampant expansion of small business and aggressive investors who wish to get their businesses recognized as limited companies.
However, it is advisable to seek the support of an accountant in the best way possible to run a business; to register it as a limited company or run it as it is.
Who’s eligible to incorporate?
According to the United Kingdom’s legal provisions governing company incorporation, one or multiple persons, companies or any other body, are eligible of forming and registering a limited company having submitted their names to a memorandum of association, upon which they must confirm their consent to form the company. Such parties must be 16 years and above; otherwise, rejection is all they’ll meet at the end.
Types of companies incorporated
The four types of companies accepted are as follows;
- Private companies with shares limitations
- Private companies with guarantee limitations
- Unlimited private companies
- Limited public companies
Methods of company incorporation and fees chargeable
There are three principal methods of incorporating a company, in the United Kingdom, after setting up a limited company for contracting. Each of the methods has their distinct charges for company incorporation. They are as follows;
Filing through electronic software
It is a method that employs the use of a suitably configured software to submit details of the company under question. However, this system has limits as on the spectrum of coverage. They, therefore inform their clients where they can offer their services at specific fees.
£10 is the standard chargeable fee for incorporating a company through an electronic software. Alternatively, one can pay £30 for instant incorporation that is usually complete by 3.00pm, Monday to Friday. However, a straightforward application must not take more than 24 hours!
Incorporating a company via web services
Web incorporation is very secure and the most reliable way to incorporate to incorporate a company online. It saves time big time through its quick and effortless processes at a standard fee of £12.
However, there’s no completion of incorporation within 24 hours, as the case in filing through electronic software. Another limitation of this method is that individuals applying for a private company with shares limitations are eligible to exploit this procedure. Typically, such applicants entirely adopt model articles accompanied with a non-incentive naming proposal.
Compared to the electronic method of application, this method takes a little bit longer due to the logistical factors that take time transporting documents to and from the appropriate offices. Under this method, two distinct charges are applicable under the influence of two different perspectives;
- Concerning the first option, £40 is the standard incorporation fee charged for regular incorporation. An alternative to this is £100 for integration within one day, usually completed by 3.00 pm as from Monday to Friday.
- The second option required applicants to pay £20 as the standard incorporation fee or an alternative of £100 for “same day incorporation” under the following circumstances;
- if the applicant intends to incorporate his company as a Community Interest Company.
In such a case, the total of incorporation will be £35 having the CIC regulation fee included. However, there’s no “same day” incorporation!
- If the company in question has its headquarters offices in Wales (“Welsh Company”) and the applicant happens to file the incorporation documents in the Welsh language.
In such events, applicants are free to consider web incorporation strictly for private limited companies. Adoption of the models if articles is a guarantee!
- When the company is an unlimited company
In case an applicant wishes to pay through a cheque, he is only allowed to drop it at the Companies House.