Setting up a limited company in 2026 isn’t quite like it was a year ago. Companies House has made significant changes—higher fees, mandatory ID verification, and new compliance requirements. Here’s everything you need to know before you incorporate.
The New £100 Incorporation Fee
The most immediate change: Companies House has increased the standard incorporation fee from £12 to £100. This applies to all new company formations from 2024 onwards.
Why the increase? Companies House is funding a major transformation programme to improve company data accuracy and reduce fraud. The fee increase helps pay for enhanced verification systems and staff.
📌 Important: When comparing formation agents, check if the £100 Companies House fee is included or charged separately. Our £250 all-in price includes this fee—no surprises.
Mandatory Identity Verification
The biggest practical change is compulsory ID verification for all directors. Previously, you could incorporate a company without proving you were who you said you were. Not anymore.
Every director must now verify their identity through one of several approved methods:
- Online verification via GOV.UK (using photo ID and a selfie)
- Through an authorised agent like an accountant
- In person at a Companies House office
The online process takes about 10 minutes if you have your passport or driving licence handy. We guide our clients through this step—it’s straightforward once you know what to expect.
What You Need to Form a Company in 2026
Before you start the incorporation process, gather:
- Company name – Check availability on the Companies House name checker
- Registered office address – A UK address where official mail will be sent
- Director details – Name, DOB, nationality, occupation, residential address
- Shareholder details – Who owns the company and in what proportions
- SIC codes – The classification codes for your business activities
- Share structure – Usually ordinary shares, but sometimes preference shares too
- Photo ID – Passport or driving licence for verification
How Long Does Company Formation Take?
With digital submission, most companies are incorporated within 24 hours. Occasionally it takes 2-3 days if there’s a name query or verification delay.
Once incorporated, you’ll receive:
- Certificate of Incorporation (your company’s “birth certificate”)
- Your unique company number
- Confirmation of registered office and directors
What Happens After Incorporation?
Forming the company is just the beginning. You’ll then need to:
- Register for Corporation Tax with HMRC (within 3 months)
- Open a business bank account (you’ll need your company number)
- Register for VAT if you expect turnover over £90,000
- Set up PAYE if you’re taking a salary
- Consider business insurance depending on your activities
And ongoing, you’ll have annual obligations: accounts filing, confirmation statements, and Corporation Tax returns. This is where having an accountant from day one makes life easier.
Should You Form a Company or Stay Self-Employed?
Not everyone needs a limited company. It makes sense when:
- You’re earning over £50,000 profit (tax efficiency kicks in)
- You want limited liability protection
- Clients require you to be incorporated
- You’re planning to raise investment or bring in partners
If you’re earning under £30,000 or want minimal admin, self-employment might be simpler. We’ll tell you honestly which structure suits your situation.
Ready to Incorporate?
Our £250 all-in package includes the £100 Companies House fee, registered office address, and full setup support.