How Much Does Incorporation Of A Company Cost In The UK?

How Much Does Incorporation Of A Company Cost In The UK?

February 02, 2024

Starting a business in the UK is an exciting move that also needs careful consideration. As you enjoy your new venture, you should understand the costs you will incur for better planning since 82% of startups fail because of cash flow issues. Keep reading to learn more about the business incorporation costs in the UK. 

Calculating Business Startup Expenses 

It’s almost impossible that you will incur some expenses to start your business. That’s why you should have a solid business plan highlighting your projections as you find your funding options. Even if someone funds the startup, a good plan provides proper financial highlights, enabling you to cater to everything.  

 Calculating your business costs lets you know if you can afford the launch, making exploring the available funding options easier. Here is a brief overview of the main business costs in the United Kingdom. 

Business Registration Fees 

Registering a business is a mandatory legal requirement that allows you to get the certifications you need to prove your business is legit. But how much does it cost to register a company in the UK? The cost greatly varies according to the type of business.  

 You will incur the least money if you are starting a sole proprietorship. Similarly, you may spend between £10 and £100 when registering a limited company, partnership, or public company. 

Business Consultation and Research 

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Sometimes, you may incur costs in doing business calculations and research before you start your business. Your research may include finding the right business ideas that work in your location and more details about the industry. You may even hire a professional consulting agency to get the basics of what you are getting into. This research and consultation phase may cost you some money, although it's less if you solely use online platforms. 

Business Premises and Equipment 

 Assuming you have registered your business, you must find the ideal location and working equipment. Unless you work from home, you can build your space, rent, or lease one. In addition to the space, you will need decent working supplies like a computer, office desk, telephone, and stationery.  

 You can find a decent desk for less than £200 and a good computer for £400. Find the supplies you need in your office and calculate the costs effectively. You can consult an interior designer to help you get and plan your office well. 

Staff Hiring 

 Depending on the size and nature of your business, you may incur some costs in hiring new employees. These costs may include the fee for publishing your job advert, conducting interviews, and training your new workers.  

 Getting your employees through a hiring agency is a great option, but you should weigh the cost of the recruitment agency and individual hiring to find what works well for your budget. 



 Marketing is another vital aspect of starting a business in the UK that you should keep in mind. After establishing your stirrup, you will need people to learn about your business and offerings, and that’s why marketing is vital. Traditional and digital marketing options are great; you can weigh both options to choose what best works for you.  


Marketing doesn’t have to be costly, provided you offer excellent services. According to the Experian, 38% of businesses spend less than £1,000 on marketing yearly. Create your marketing budget to build your brand and increase the credibility of your business. 



 In the UK, employee liability insurance is mandatory for all businesses. If you have hired staff, you should take this type of insurance to cover employees’ medical costs in case they get injured in the line of duty. You should also take commercial auto insurance if you have business vehicles and building insurance for financial protection in case of fire or theft.  

 Most small businesses incur an average of £118 a year on insurance, but it can be higher for businesses operating in the risk sectors. Partner with a reliable insurance company to determine your options and choose the best. 

How to Calculate Your Business Incorporation Costs 

 You can calculate your business startup costs in a spreadsheet or use a book and a pen. Before calculations, you should write down all the fixed and variable costs you will incur in establishing the company. Fixed costs include buying new office equipment and supplies and setting up the business premises. 

 After that, you should also write down the business running costs you will incur daily, like electricity, parking fees, food and beverages, cleaning costs, and salaries and wages. Add everything to know the minimum amount you need to establish your firm.  

Where to Find Funds for Your New Business 

 Finding money to start your business can be challenging, mainly if you don’t have enough savings. However, there are many reliable options that you can consider to establish your business successfully. For instance, you can get a bank loan with an excellent credit score. You may find an angel investor or join a crowdfunding program.  

 Government-backed loans are also available for the military and other candidates who qualify. Once you calculate the startup costs, include them in a business plan and start your funding applications. 


The exact cost of starting a business in the UK depends on the size and type of business. Before you start, create a budget to know what you can afford. Do simple research to understand how much people in your industry spend to establish their firms, and then start looking for funds. A good budget and financial planning can help you establish your business smoothly. 




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