Companies House, the registrar of limited companies in the UK, has announced that it is to reduce its fees from October 2012, subject to Parliamentary approval.
The organisation is obliged by European Law and Treasury guidelines to ensure that the prices charged for incorporation and other services reflects the costs of delivery.
The price cuts are a result of both efficiency savings by Companies House, and the significant rise in the number of company-related transactions which are now being conducted online, rather than on paper.
New Companies House fees
The proposed new fees are as follows:
- Limited Company Formation (via the web) – £15 (it is currently £18).
- Limited Company or LLP Formation (via software) – £13 (currently £14).
- Annual Return (for limited companies and LLPs) – £13 (currently £14).
- In addition, a number of company search functions will become free from October 2012, while many searches currently cost £1.
Setting up a company
It has never been less expensive to incorporate a company. You can do so for a mere £18 via Companies House (see here for more details), by using a formations agent (for a higher fee), or many accountants will set up a company on your behalf.
The Companies Act 2006 has also simplified how companies deal with Companies House. Many forms can now be submitted electronically, a company can be formed with just a sole director (the company secretary is an optional appointment), and Model Articles of Association are now available upon incorporation. Company officers can also provide ‘service’ addresses if they wish to keep their residential address off the public record.
Before going ahead, read our article which outlines the information you will require in order to set up a company.