How Much Does It Cost To Set Up A Business In The UK?

Starting a business in the UK can be relatively inexpensive, but there are certain costs that should be taken into account.

The first cost to consider is the fee for registering with Companies House. Companies House is the arm of the British Government that maintains the register of companies. The fee for registration varies depending on the type of business structure you choose and whether you choose to register online or via paper forms. For example, in 2023, registering a limited company online costs £13, while registering a paper form costs £40.

Another cost to consider is the cost of obtaining business licenses and permits. This can include health and safety and food hygiene certificates for food businesses for example, as well as any other licenses required by your local council or regulatory body. The cost of these licenses and permits will vary depending on the type of business you are running and the location of your business.

Setting up a business bank account can also have hidden costs. Many banks charge a fee for setting up a business account, and ongoing account maintenance fees may also apply. Given that this will be an ongoing cost for your business, it is important to shop around and compare fees from different banks to find the best deal.
 

 
In addition to these costs, you may also need to hire professionals such as solicitors, accountants or business advisors to ensure the company is being set up correctly. Their fees will vary depending on their level of expertise, the services they provide and the size of your business. However, their expertise and guidance can be invaluable in helping you navigate the legal and financial aspects of setting up a business.

Finally, it is also important to budget for ongoing expenses such as rent, utilities, and marketing. These costs will vary depending on the type of business you are running, and can have a significant impact on the bottom line. High rent in major cities for example, may need to be balanced by an increase in product cost. Budgeting for these costs will allow you to set up your business and develop a plan with these in mind.

Overall, while the costs associated with registering a business in the UK can vary, it is important to budget for the fees associated with registering with Companies House, obtaining licenses and permits, setting up a business bank account, and any professional fees you may incur. It is also important to budget for ongoing expenses such as rent, utilities, and marketing. With proper planning and budgeting, you can ensure that your business is set up for success from the start.