Do you want to know how much it costs to set up a limited company? This is a question which first comes to your mind when you think of starting a business or a limited company. A limited company is liable to settle its debts, up to the limit of its owned assets and can’t be sued for more.
There are 3 main ways by which you can set up your own limited company. In this article you will learn how much cost is required to set up a limited company.The cost may vary according to the way of formation that you choose.
3 Main Ways to Form A Limited Company
1. Companies House (Incorporating Directly)
Companies house handles the incorporation and dissolution of limited companies. You can register your company information with them and make it public. To register a company, you will need the approval of Companies house. The standard registration fee to set up a company or an organisation is £13 for the Companies House web incorporation service. It takes up to 24 hours for the process to complete. You can pay via credit card, debit card or PayPal.
2. Using a Formation Agent
Your companies can also be registered through formation agents. The main aim of the formation agent is to provide a seamless company formation process that is quick and easy. There are many formation services that are available online, providing multiple services! Most of the formation agents make their money by offering additional add-ons like setting up business bank accounts which result in more cost for the formation of your company.
All you need to do is simply search if your desired name for the company is available. Pay the fee of the formation agent (which depends on them, how much they ask for). Everything else will be taken care of by your agent. There are many formation agents in the market who can help you start your own company.
3. Hiring an Accountant
The people who are new to starting a company prefer this option the most. A large number of contractors also prefer to set up a company via accountants because this is the most feasible process. For many people,the idea of running a company on their own can be scary.By hiring a specialist accountant,you can make this process a lot easier. The cost of the accountant depends on how qualified your accountant is and the range of services you require from them.
Ongoing Costs of Running a Company
The ongoing costs of a company depend on several factors and the scale of your operations. The ongoing statutory cost is £13 for running your company, which is the fee for submitting the annual return. Annual returns are collected every year on the same day your company was formed.
The main costs to set up a limited companyhave been explained above in detail. If you are a beginner, you can get professional help in every step of formation of your company. We hope that this article will prove useful for your understanding on the topic.