Heads up for all UK businesses and those planning to incorporate
The cost of starting and maintaining a company is about to see a significant jump. Companies House has announced a substantial restructuring of its fee schedule, with the digital fee for incorporating a new business set to double from £50 to £100.
This major fee increase will take effect on February 1, 2026, impacting all registered entities, including private limited companies, Limited Liability Partnerships (LLPs), charitable companies, and overseas entities. It represents the second change since the fee was last hiked from a negligible £12 in May 2024, but marks the most significant fee overhaul in nearly a decade.
Key Fee Increases to Note
The fee rise is broad, affecting several critical filing categories used by companies daily. The most notable changes to the digital filing fees are:
Incorporation: Increasing from £50 to £100 (a 100% increase).
Confirmation Statement: Increasing from £34 to £50.
While most changes are increases—including those for paper filing—there is one key fee reduction aimed at streamlining the register: the digital fee for a voluntary strike-off filing will be cut substantially from £33 to £13. Businesses must budget for these new costs well ahead of the 2026 implementation date.
The Rationale: Funding Fraud Cleanup and Tech Upgrades
Companies House states that the higher fees are necessary to fund critical investment in its systems and operations. The revenue generated will be used to fuel upgrades to technology infrastructure and significantly enhance the investigation and enforcement activity carried out by the Insolvency Service.
This financial move is part of a broader, government-backed initiative to clean up the UK company register and stamp out fraudulent activity. This aligns with recent legislative changes granting Companies House new, enhanced powers to improve transparency and data quality.
A related, and imminent, anti-fraud measure is the mandatory ID verification for company directors, which will become compulsory for new directors starting November 18. This step is designed to ensure that the individuals setting up or running a company are who they claim to be, thus creating a more reliable public record.
These changes signify a pivotal moment for the UK’s corporate register, ushering in a new era of security, transparency, and digital efficiency. While the fee hikes represent a noticeable cost increase for small businesses and formation agents, it is worth noting that even with the new £100 fee, UK incorporation costs still remain low by international standards.
Prepare for the financial changes in 2026 and ensure your company is compliant with all new transparency measures.
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