Start a business in England: How much does it cost?

Starting a business in England is an appealing option for entrepreneurs due to its simple process and tax benefits, but before you start a business, it is essential to know the associated costs in order to plan properly.

1. First step before you start a business in England: Company registration

The first step is to register your company with Companies House, the entity responsible for business incorporation in the UK. Additionally, the registration cost depends on the method you choose.

•  Online registration: £12 (approximately 14 euros).
• Postal registration: £40 (approximately €47).
• Registration in the same day: £100 (approximately 118 euros).

Most entrepreneurs opt for online registration because it is faster and cheaper.

2. Costs of a registered address in order to start a business in England

Every business in the UK must have a registered address. Therefore, if you do not have a physical office, you can start by contracting a business address service, which is essential for your business. The prices of which vary between:

•  £40 to £150 per year (€47 – €177), depending on location and services included.

3. Business bank account

When you start a company in England, in order to manage your finances you will need a business bank account. In the UK, many banks offer free accounts, but some have monthly fees:

• Digital accounts (Revolut, Tide, Monzo Business): from £0 to £5 per month.
• Traditional banks (HSBC, Barclays, Lloyds): £6 to £12 per month.

It is worth considering that some banks also charge for additional transactions, so you may want to check the terms before choosing.

4. Accounting and tax costs for your company

Depending on the size of your business, you might need an accountant to manage your tax obligations. In this case, this costs can vary:

• Accounting software (Xero, QuickBooks, FreeAgent): £10 – £30 per month.
• Professional accounting services: from £50 to £300 per month, depending on the complexity of your business.

5. Business insurance when you start a company in England

In some cases, specific insurance is required by law in order to operate. For instance, costs vary according to the sector:

• Liability insurance: £50 – £200 per year.
• Employee insurance (compulsory if you have employees): from £100 per year.

6. Legal costs and contracts

If you need to draft terms and conditions, employee contracts or commercial agreements when you start your business in England, therefore, you may require legal assistance:

• Legal templates: Free or from £50.
• Professional legal services: £200 – £500 per document.

7. Marketing and website

Having an online presence is key to attracting customers. For instance, some associated costs are:

• Web domain: £10 – £50 per year.
• Professional web design: £300 – £1000 (optional, depending on needs).

8. Other operating costs

Depending on the type of business, you could face other expenses. As a result, some of these may include:

• Office rent: £200 – £500 per month (shared spaces or small offices).
• Software and tools: from £10 per month (depending on specific needs).

Star a business in England: Conclusion

The cost of setting up a business in the UK can be as little as £12 if you only consider registration, but other factors such as accounting, insurance and marketing can increase the initial investment. Planning well for these costs will help you avoid surprises and ensure a good start when you start a business in England.