Company formation in the United Kingdom

Updated 7 October 2026

What it costs to set up a private limited company in the UK in 2026, what Companies House requires, and which taxes and filings follow.

The standard business form in the UK is the private company limited by shares. It is registered by Companies House, usually online and within a day. Directors and shareholders need not be UK residents, but since 18 November 2025 every director and every person with significant control must verify their identity with Companies House. Without it a company cannot be incorporated, and an existing company cannot file its annual confirmation statement.

A UK company works well for trade with Europe and the US, marketplaces and payment providers, and raising investment. But corporation tax reaches 25%, and banks and payment providers check for real activity, so the structure is planned before incorporation.

How much does it cost to register a company in the UK: government fees

Companies House fees rose on 1 February 2026. Dollar amounts use the European Central Bank rate of 5 October 2026, about $1.32 per pound.

Identity verification itself is free when done directly through the government service with a passport.

Company requirements

• Director. At least one, and at least one director must be a natural person aged 16 or over. Nationality and residence do not matter.
• Shareholder. At least one, an individual or a company. Share capital can be nominal.
• Registered office in the part of the UK where the company is registered. Since 4 March 2024 it must be an appropriate address, where post arrives and documents are received. A PO box does not qualify.
• Registered email address for Companies House, mandatory since 2024 and not made public.
• Register of people with significant control: anyone holding more than 25% of shares or votes or otherwise controlling the company.

How incorporation works

1. Name. We check that the name is available and has no words that need separate consent.
2. Identity verification. Directors and owners complete it in advance and receive a personal code; no code, no filing.
3. Articles and details. We prepare the articles and details of directors, shareholders, shares and controllers.
4. Filing. Online incorporation usually takes up to 24 hours, then the certificate and company number arrive.
5. Tax registration. Within three months of starting business, the company registers for corporation tax.
6. Bank. We prepare the account-opening file: business description, clients, payment countries.

Taxes and reporting

• Corporation tax: 19% on profits up to £50,000, about $66,200, and 25% above £250,000, about $330,700. Marginal relief applies in between, so the effective rate rises gradually.
• VAT: 20%. Registration is mandatory once 12-month turnover exceeds £90,000, about $119,100.
• Annual accounts to Companies House within 9 months of the financial year end, the first within 21 months of incorporation. Late-filing penalties grow by the month.
• Corporation tax return within 12 months of the period end; smaller companies pay the tax 9 months and 1 day after it.
• Confirmation statement at least once every 12 months, with identity codes for all directors.

Why problems arise

• A director has not verified identity: the filing is rejected, and an existing company's confirmation statement is blocked.
• An inappropriate registered office: Companies House may replace it with its default address, and the company stops receiving official post.
• The bank refuses an account where there is no clear business, clients or UK connection.
• Missed reporting deadlines: penalties and eventually striking off.
• The company becomes tax resident elsewhere if it is actually managed from another country. We check this before incorporation.

What we do

Murblz specialists design the structure for your goal, take directors and owners through identity verification, provide the registered office, prepare the articles and file with Companies House. Then we register the company for tax, prepare the bank file and remind you of reporting deadlines. Company formation with an operating office is from £5,170, about $6,900; audit of accounts £1,200, about $1,600; liquidation from £1,350, about $1,800.

Fees

See also

Business account · Personal account · Investment property · Country taxes

FAQ