Why does it cost money to form a limited by guarantee company?


Right, so I’ve got a query/bone to pick. I am forming a non-profit limited by guarantee company that will be applying for charitable status. I won’t make a profit, I will be giving back to the community, so why is the government making me pay just for a couple slips of paper? I know it’s not a lot of money, but it’s the principle of the thing.



You have to pay a registration fee to set up a company because there is more administration and governance required than for unincorporated business structures like sole traders.

For this fee, Companies House provides the following services:

  • Incorporating businesses as legal ‘persons’.
  • Providing a full set of incorporation documents to all limited companies
  • Carrying out name checks on all new incorporations to ensure no two names are the same, too similar, misleading or prohibited.
  • Maintaining a vast public register with the details of all active and dissolved limited companies to provide corporate transparency to the general public.
  • Liaising with HMRC when new companies are formed.
  • Processing annual accounts for all companies currently active on the register.
  • Maintaining a free public register of disqualified directors
  • Maintaining four information centres in the UK where the public can access digital services to find company data.
  • Providing a free and secure online filing facility for companies. It is called WebFiling.

A detailed explanation of all Companies House services and fees can be found here.

2 years ago

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