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Posted: Mon 19th Feb 2024
The fee for setting up a limited company using the Companies House website will rise from £12 to £50 in May.
The increase to the charge, which hasn't changed since 2016, follows a review of how the government's new Economic Crime and Corporate Transparency (ECCT) Act will impact on the costs incurred by Companies House.
The regulations are designed to prevent organised criminals and fraud by giving Companies House enhanced powers to verify the identities of company directors, remove fraudulent organisations from the company register and share information with criminal investigation agencies.
The first changes in the Act are expected to come into force on 4 March.
As well as the increase in incorporating a limited company online, a newly published list of Companies House fees from 1 May 2024 shows other increases. For example, the cost to incorporate using paper will rise from £40 to £71, changing a company name online will increase from £8 to £20, and registering a Community Interest Company (CIC) online will go from £27 to £65.
In a blog post about its fees, Companies House said:
"Companies House fees are set on a cost recovery basis. This means our fees must cover the cost of the services we deliver. We do not make a profit on our fees.
"We review our fees every year to make sure they're set at the right level. This year, we've taken new future expenditure into account as well as making sure we recover costs from our existing expenditure.
"Companies House fees are much lower than the global average and have not changed since 2016. Many believe our fees are too low.
"During the debates while the ECCT Bill has moved through Parliament, there's been a focus on the low levels of our fees and on making sure we're adequately funded in the future."
