If it has always been a dream of yours to start and run your own business, the very first step that you will need to take is to register a limited company with HMRC. While the running of your business may involve a lot of work and long hours, actually registering your business is something that’s extremely easy and affordable to do. In this article, we look at the costs of a limited company registration and the various options you have available to do this. Keep reading to find out more!
How to register a company and how much it costs
Although there are several different types of company formations, such as Ltd., in this article we will explore the ways in which you can set up a private limited company. These two options include either going through the process online or do so via post. Here are some of the specifics of each of these options:
- Online: because most of the business services offered by Companies House and HMRC are going online to increase efficiency and decrease paperwork, you can now incorporate your business online for the cost of a flat fee of only £12. This is done through the Companies House website. The payment can be made via a debit or credit card or via PayPal. In most cases, your company registration request will be processed within 24 hours. Just make sure that your company will be limited by shares (in other words, that it’s a private limited company) and that you use standard articles of association.
- Via post: should you wish to keep your company registration process offline, you still have that option. However, bear in mind that this process requires greater effort and a greater length of time, and as such, the costs for this service are higher. In fact, the cost of registering a company via standard post is £40. The process takes anywhere from eight to 10 days. In addition, you will be required to send a completed IN01 form, along with a cheque made payable to “Companies House”. Of course, this process can be sped up and you can have your registration application processed on the day it arrives. However, this will cost you £100. Furthermore, you will need to write “same day service” at the top-left corner of the envelope. Lastly, your application must arrive before 15:00 in order for it to be processed that day.
In conclusion
While there are no further costs involved in registering your company, you should be aware that you will need to register for corporation tax within the first three months of trading. If you need help with this, or any assistance with the process of registering your limited company, it might be a better idea to speak to a specialist who knows the ins and outs of everything from starting a business to managing your accounts and tax. That’s what we at Tax Navigator are here for and we are more than happy to be of service. All you need to do is get in touch with us.
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