UK Company Formation Price Increase 2026: Updated Costs, History & What It Means for New Businesses

If you’re planning to register a company in the UK, it’s important to know one thing upfront: UK company formation prices have increased significantly in 2026—and this is not a temporary change. 

The UK government has officially raised Companies House fees, making company incorporation more expensive than ever before. This guide explains what has increased, how prices have evolved over time, and what entrepreneurs (including non-UK residents) should do next Has the UK Company Formation Price Increased? 

Yes. 

From February 2026, the official incorporation fees charged by Companies House increased sharply as part of wider regulatory reforms. 

Updated UK Company Formation Fees (2026) 

Service Previous Fee 

New Fee (2026) 

Online company incorporation £50 £100 

Same-day company formation £78 £156 

Paper incorporation £71 £124 

Confirmation statement (digital) £34 £50 

�� Key point: 

The standard online company formation fee has doubled, directly affecting startups, small businesses, and overseas founders. 

�� UK Company Formation Price History (2020–2026)

To understand why costs have risen so sharply, it helps to look at how UK company formation pricing has evolved over time. 

The table below shows official Companies House fees over the last six years, revealing a clear shift in policy and pricing. 

UK Company Formation Price History 

Year Incorporation (Digital) 

Incorporation (Paper) 

Same-Day 

Service 

Confirmation Statement (Digital) 

Voluntary Strike-Off (Digital) 

2020 £12 £40 £30 £13 £10 2021 £12 £40 £30 £13 £10 2022 £12 £40 £30 £13 £10 2023 £12 £40 £30 £13 £10 

2024 £50 (revision announced) 

£62 £80 £20 £10 

2026 

(Current) 

£100 £124 £156 £50 £13 

Source: Companies House – UK Government fee updates (2026)  Please watch the video given below to know in detail What This Price History Clearly Shows 

1️2020–2023: Artificially Low Fees 

For several years, digital company incorporation has been just £12, making the UK one of the cheapest jurisdictions globally. This led to high volumes of incorporations—but also abuse of the system. 

2️2024: The Turning Point 

In 2024, the UK government signaled major reforms, announcing fee increases alongside stronger enforcement and transparency requirements. 

3️2026: A Permanent Cost Reset 

By 2026: 

● Digital incorporation fees have increased by over 700% compared to 2020

● Same-day formation costs are now more than five times higher ● Ongoing compliance costs have risen sharply 

�� These increases are structural, not temporary, and reflect long-term regulatory policy. 


Why Have UK Company Formation Fees Increased?


The higher fees are designed to fund: 

● Mandatory identity verification for directors and PSCs 

● Increased scrutiny of company data 

● Stronger enforcement against shell and fraudulent companies 

● Improved monitoring and compliance systems 

In short, the UK is prioritising quality and transparency over volumeAlso read: London Office Address: Why It Matters and How Businesses Can Use One What Does This Mean for Non-UK Residents? 

Non-UK residents are affected more than UK residents because company formation often also requires: 

A UK registered office address 

Director service address 

● Compliance and verification support 

● Assistance with banking and ongoing filings 

With higher official fees, incorrect or incomplete formations now cost more to fix, making professional setup increasingly important. 

What Is the Real Cost to Form a UK Company in 2026?

While the government fee is £100, the true cost of a compliant setup usually includes: ● Companies House incorporation fee 

● Formation service provider fee 

● Registered office address 

● Digital statutory documents 

● Compliance and filing support 

�� Typical total cost in 2026: 

£120 – £300, depending on services included. 

Be cautious of “cheap” formation offers that exclude essential compliance—these often result in higher costs later.  Also read: Register Business Name UK: The Complete 2026 Guide (Fast, Legal)

Can You Still Form a UK Company Cost-Effectively in 2026? 

Yes—if it’s done correctly

Smart ways to control costs: 

Use digital incorporation only 

Bundle formation with registered office & compliance 

Avoid misleading “£0 formation” offers 

Ensure identity verification is handled properly 

Getting it right the first time is now cheaper than fixing mistakes later. 

Is UK Company Formation Still Worth It in 2026? Absolutely. 

Despite higher costs, the UK remains one of the most attractive jurisdictions for: ● International entrepreneurs 

● E-commerce and SaaS businesses

● Global banking access 

● Investor credibility 

● Legal and regulatory stability 

The key change in 2026 is simple: 

�� Cheap setups are risky. Proper setups win. 

Frequently Asked Questions (UK Company Formation 2026) 

Has the UK company registration fee doubled? 

Yes. Online incorporation increased from £50 to £100 in 2026. 

Does this apply to non-UK residents? 

Yes. The fee applies equally to UK and non-UK residents. 

Are any Companies House fees lower? 

Yes. The voluntary strike-off fee has been reduced. 

Will UK company formation costs increase again? 

Further increases are possible as compliance requirements expand. 

Final Thoughts 

The UK company formation price increase in 2026 is real, permanent, and policy-driven. Businesses that understand the new cost structure and focus on a compliant setup will continue to benefit from the UK’s strong business environment. 

If you’re planning to set up a UK limited company in 2026, the priority is no longer the cheapest option—but the correct one.


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