The cost of incorporating an IT company in the UK involves several essential expenses. These include a £12 company name reservation (optional, valid for 3 months), a formation fee of £13 online or £40 via paper application, share capital minimum of £1 with no associated cost if only one shareholder, a registered office address annual fee ranging around £50-£100, a first year’s corporation tax bill based on profits (expect to pay at least £200), and professional fees for accountants and legal services that can range from £500-£3000+.
John, an IT entrepreneur, incorporated his startup with a share capital of £1, a registered office address costing £80, and professional fees totaling £2000. His first year’s corporation tax bill was approximately £500.
Compared to other European countries like Germany or France, setting up an IT company in the UK is relatively affordable. However, professional fees can escalate if you opt for extensive legal and accounting services.
Incorporating a company is just the beginning, as ongoing costs like corporation tax, accountancy fees, and annual compliance requirements should also be budgeted for. It’s advisable to seek professional advice, especially if you’re new to business. The process usually takes about 24 hours if done online or up to 8 days via paper application.
With careful planning and budgeting, you can successfully navigate this financial landscape and turn your IT startup dream into a reality.