How much does it cost to start a company in the UK?

The real cost of starting a company in the UK

Founders often underestimate the full cost of launching. Registration is only one line item. A realistic UK startup budget includes legal structure, banking, digital presence, insurance, and — for most tech ideas — an MVP you can put in front of customers. Below is a practical breakdown for 2026 based on what first-time founders actually spend.

One-off setup costs

Companies House incorporation: from £50 online (fees may change)
Formation agent or guided setup: £50–£500+ depending on support level
Domain name: typically £10–£20 per year
Professional email: often £5–£15 per user per month
Business bank account: many UK banks offer free business banking for startups
Basic insurance: varies by industry; budget from £200+ per year for common policies

MVP and product costs

If your idea needs a website or app to test demand, MVP costs dominate early spending. Enterprise agencies often quote £20,000+. Freelancers vary widely. Consult14 typically delivers focused MVPs for £1,000–£2,500 depending on scope. See our MVP development guide for a detailed breakdown.

Ongoing costs to plan for

Confirmation statement and Companies House filings
Annual accounts and Corporation Tax (accountant fees if you use one)
Hosting, software subscriptions, and domain renewals
Marketing and customer acquisition once you launch

Three budget tiers for UK founders

Lean validation (£0–£500): Test demand with landing pages, conversations, and minimal spend before registering
Proper launch (£500–£3,000): LTD setup, banking, domain, and a focused MVP — the range most first-time founders target
Growth phase (£3,000+): Expanded product, marketing, and professional services once demand is proven

Where to save without cutting corners

Fixed-fee packages beat open-ended consultancy for early-stage founders. Our £500 company setup covers the essentials with expert guidance. Compare full pricing or read the FAQ for common cost questions.