How much is it to set up a limited company?

How Much Is It to Set Up a Limited Company?

A record number of businesses were established during the Covid-19 pandemic, as many people turned their dreams of launching a business into a reality. With more time on their hands due to furloughs and lockdowns, individuals across the UK seized the opportunity to pursue their passions and embark on entrepreneurial journeys.

According to analysis conducted by the Centre for Entrepreneurs, over 500,000 companies were launched in 2020—a significant increase compared to the same period in 2019. This surge highlights how many used the pandemic as a chance to transform their lives and embrace new opportunities.

While the UK economy faced unprecedented challenges during this time, it wasn’t all doom and gloom. Many businesses not only survived but thrived, and new and innovative companies continue to emerge every day.

Among these newly established businesses, many opted to register as a limited company, benefiting from the protections and advantages that this structure offers.

What Are the Main Advantages of a Limited Company?

Setting up a limited company comes with a host of benefits that make it an appealing choice for entrepreneurs. These advantages include:

• Protection through limited liability: Your personal assets are protected in case the company faces financial difficulties.
• Improved reputation: A limited company structure often enhances your credibility with customers, suppliers, and investors.
• Tax efficiency: Limited companies typically pay less tax on profits compared to sole traders.
• National Insurance efficiency: Structuring income through dividends can reduce National Insurance contributions.
• Quick and easy to set up: Registering a limited company is a straightforward process.

These benefits make the limited company structure a popular choice for business owners who want to safeguard their personal finances while enjoying the professional credibility that comes with incorporation.

How Much Does It Cost to Set Up a Limited Company?

Setting up a limited company in the UK is surprisingly affordable. The cost to register your company is minimal, making it accessible to a wide range of entrepreneurs.

At React Accountancy, we can set up your limited company for just £55+VAT. This service ensures that your company is registered efficiently and correctly, giving you peace of mind as you begin your entrepreneurial journey.

Of course, while the registration fee is minimal, there are additional costs to consider when starting a business. These may include:

– Printing formal company documents, such as share certificates.
– Paying for business premises if required.
– Hiring accountancy services to ensure compliance with financial regulations.
– Purchasing stock and inventory.
– Renting or buying essential equipment.
– Creating and distributing marketing materials to promote your business.

As economic challenges continue and unemployment rises, it is expected that even more people will take the leap and set up their own companies, contributing to the UK’s growing entrepreneurial landscape.

Why Choose React Accountancy?

At React Accountancy, we provide trusted and reliable accountancy services tailored to businesses of all sizes and industries. Whether you’re a start-up, an established company, or a multinational organisation, we’re here to help you succeed.

From the moment you contact us, our friendly and professional team will work closely with you to provide the right advice, support, and solutions for your business needs.

Why Work With Us?

– **Experience You Can Trust:** Our team has years of expertise in supporting businesses through every stage of growth.
– **Tailored Solutions:** We understand that every business is unique, which is why we offer personalised services.
– **Hassle-Free Setup:** We make the process of setting up a limited company simple and stress-free.
– **Comprehensive Support:** From financial management to tax compliance, we’ve got you covered.

Contact Us Today

If you’re ready to set up your limited company or have any questions about our services, don’t hesitate to reach out.

– Call us on 0191 432 4110
– Email us at info@reactaccountancy.co.uk
– Visit our website at React Accountancy

Let’s work together to make your business aspirations a reality.