If you want to set up a limited company, you might worry about the overall cost of doing so. After all, you might have to pay for other expenditures which are associated with setting up a limited company. If you will be renting a warehouse which can be used for storing goods or purchasing vehicles for employees, any added expense has to be carefully considered. So, what is the actual cost of setting up a limited company?
The many ways to form a limited company
Setting up a company needn’t be as difficult as you might think it would be. Companies House are the only organisation which can register a limited company. A limited company can be set up online and administration fees have to be paid. To form a limited company online, you will have to pay £18. It can take a few days for Companies House to officially recognise a company and send the relevant documents which state that a limited company exists. If you want to form a limited company on the same day of when an application is made, £30 will have to be paid instead of £18.
A paper-based application can also be filed as well. The same documents (Form IN01, Memorandum of Association and Articles of Association) have to be provided for a paper-based application and the cost of doing so is £40. If you want Companies House to process a registration for a limited company on the same day, £100 is charged. Although an application that’s made by paper is the preferred choice of many directors who want to form a limited company, it is recommended that you register a limited company online. When a limited company is registered online, your documents will be sent confidentially and this is not guaranteed when sending the relevant registration forms via post.
Other costs which might have to be paid
If you haven’t registered a company before and you are not confident that you would be able to set up a company yourself, a Formation Agent can help. Contacting Companies House on your behalf, a Formation Agent will complete all of the relevant documentation for you. When you get help from a Formation Agent, you can instead concentrate on completing other tasks that are associated with your proposed limited company. In order to avoid having to pay any added expense, you shouldn’t rent premises until Companies House has given authorisation that your limited company actually exists.
Although the initial costs which have to be paid might be very expensive, they are a necessity because it enables your limited company to begin trading. As assistance from a Formation Agent can be chosen if you do not want to register a limited company yourself, your company will be up and running as soon as possible.