From 1 May 2024, Companies House will raise the fees for its services, with some fees more than doubling, far exceeding inflation rates. Companies House sets its fees on a ‘cost recovery basis,’ meaning it charges just enough to cover the costs of the services provided, without making a profit. The reason for these fee increases is the rising costs associated with processing the data they handle.
Fee Changes
Fee changes will affect various processes such as company and LLP formation, registration of overseas entities, and the submission of confirmation statements. You can see the complete list of new fees on the Companies House website.
Here are some of the key increases for setting up new entities:
The cost to form a limited company or LLP online will rise from £10 to £50.
The fee for same-day online incorporation of a company or LLP will jump from £30 to £78.
There are also several fee hikes that will impact existing companies:
- The cost to change a company name online will go up from £8 to £20.
- The fee for submitting a confirmation statement online will increase from £13 to £34.
- The fee for a same-day share capital reduction will rise from £50 to £136.
These new fees are designed to support Companies House as it starts using its broader powers of investigation and enforcement under the Economic and Corporate Transparency Act 2023 (ECCTA).
Who Is Affected by the Companies House Fees Changes
The Economic Crime and Corporate Transparency Act introduces new responsibilities for:
- all new and existing company directors.
- people with significant control over a company (PSCs).
- anyone who submits filings for a company.
Now, let’s look at below to learn who is affected by the recent change of Companies House fees.
Types of Company and Other Corporate Entities
The new law is relevant to all types of organizations registered with Companies House, such as:
- Private Limited Companies.
- Public Limited Companies (PLCs).
- Limited Liability Partnerships (LLPs).
- Limited Partnerships (LPs).
- Community Interest Companies (CICs).
- Overseas Companies.
This legislation covers companies and other entities across England and Wales, Scotland, and Northern Ireland.
Authorized Agents
The new rules will also affect those who file documents for clients, like accountants and company formation agents. Authorized agents are also called Authorized Corporate Service Providers (ACSPs).
New Companies
If you’re thinking about starting a new company or another type of entity, you should be aware of the new rules and responsibilities brought in by the act. It’s quite important to understand how these changes will impact you.
Consequences of Fee Changes
The recent fee increases at Companies House will significantly impact authorized company formation agents, including Business Globalizer. As costs for incorporation, registration, and compliance activities rise, our pricing plans will need to be adjusted. Here’s what this means for our clients:
- Increased Service Costs: The hike in fees will lead to higher charges for our company formation services. This change will also affect our pricing for compliance, filing, taxation, bookkeeping, and accounting services.
- Revised Pricing Plans: In response to these increased costs, Business Globalizer will update its pricing plans. Clients can expect adjustments that reflect the new fee structure imposed by Companies House from May 1st, 2024.
- Impact on Budgeting: Clients planning to set up or maintain a company in the UK will need to account for these higher costs in their business budgeting and planning.
These changes underline the importance of planning ahead and budgeting for increased operational costs in the UK corporate environment.
Final Words
As Companies House implements these new fees, understanding and preparing for the changes is essential. Stay informed, plan strategically, and consider how these adjustments might influence your business operations and financial planning. For further guidance and support, feel free to reach out to experts who can help navigate these changes effectively. Or, book an appointment for our premium business consulting. Together, we can tackle these new challenges and continue to thrive in the evolving business landscape.
