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Already, 5.45 million small businesses are registered in the UK, with most of them registering as limited companies. Another 4 out of every 10 Britons plan to register their own business (UK GOV). This is because of the many benefits and protection that a limited company status gives to businesses in the UK.
For instance, limited companies find it easier to raise funds because investors consider them to be more credible and stable than sole businesses. Limited companies will not hold company stakeholders personally responsible for business losses.
When you think of the financial protection that they guarantee and the level of trust they inspire in investors, it becomes more profitable to register a limited company than to operate as a sole trader. You can register your company yourself on the Companies House website or use one of UK’s best company formation agents.
However, no company formation is complete without a business account.
Regulatory compliance requires having a business account to separate personal finances from business finances. Opening a business account in the UK is not easy, and most company formation agents do not help with it. Once they register the company – which you can do by yourself – they hand over the incorporation documents and leave you to figure out how to get a business account.
The right agent will not just send your information to the Companies House. They will also give you expert guidance on company formation, business account setup, and regulatory compliance. We’ve reviewed the 10 best UK company formation agents so that you can select the best agent that works for your small business.
How to choose the best company formation service
When you want to select a company formation package in the UK to register your limited company, there are 6 crucial factors you must consider.
Companies House authorisation for limited company registration
The first factor is to choose an agent capable of submitting company registration applications electronically to Companies House. Without this basic prerequisite, no company formation agent can get a business registered as a limited company. Make sure that the agent will handle the legal paperwork, provide support to you, and complete the registration process without any errors.
Time to open a company
Next, you want to be sure of how long the company registration process will take. This is important, especially if you are in the process of securing contracts and funding or need access to banking services. UK company formation packages with shorter registration time mean you can quickly start operating your business while staying regulatory compliant.
Compare the standard processing times of different agents to be sure you are getting the most time-efficient service available. Note that registering a company always takes 1 to 5 days, depending on the Companies House. We’ve reviewed the top service providers based on the quality of service, pricing and other factors later in this article.
Virtual business address + Mail processing
This feature is often requested by founders who want to establish a business presence in the UK, particularly if they are not residents of the UK. Checking whether they offer a virtual business address and secure mail processing as part of the company registration package is a major factor to consider when choosing your company formation agent.
Many businesses use a virtual business address because it creates a professional image and ensures they receive important correspondence without compromising the safety and privacy of their home address.
When evaluating whether a virtual business address and mail forwarding service is right for you, some of the factors to consider are:
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Quality and prestige of the virtual business location
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Mail forwarding options
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Notification systems
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Virtual business address renewal period
Options for non-UK residents
Not every company formation agent provides limited company formation to businesses whose founders are not residents of the UK. However, the best company formation services know that this factor is important because it gives international entrepreneurs access to the UK market, investors, and a favourable tax structure. If you run your business from outside of the UK, then choose an agent that caters to non-UK residents.
In addition to specialised support for international clients, look out for the following from your agent:
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Nominee director requirements. This is not necessary for a company’s registration and can be a red flag. Appointing nominee directors always comes with the risks of communication breakdown, conflict of interest, confidentiality issues and ethical challenges.
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ID verification procedures. Residents of specific countries may undergo additional verification requiring documents like a non-UK resident form, certificate of residency, bank statements, and certified copies of accounting documents.
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Residency restrictions. Some agents only work with residents from certain countries or locations.
Business account services
While registering your company, you will need a business account, as required by law, to separate your personal finances from your business finances. This account is essential for accepting payments and complying with tax requirements in the UK.
However, an absolute majority of the UK’s best company formation agents do not provide business accounts with their top company formation packages. Instead, they will refer you to partner banks, which often require a separate application process and include additional fees. In most cases, the partner banks do not support applications from non-UK residents.
Price of UK company formation packages
Finally, be sure to confirm the price of the company formation service and even do a company formation comparison from agent to agent. Every pound matters, especially when you are first starting. Clarify if there are recurring expenses that the business will keep paying or if the service is based on a subscription model because the cost may have a significant impact on your business’s finances.
Compare the base package offerings and pricing to determine whether it can meet your company’s launch requirements. You’ll find the pricing on most of the best company formation websites. Other items you should look out for are:
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Hidden charges
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Add-on service prices
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Annual renewal costs
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Companies House fee inclusion
Already Ltd? Manage your business account + admin in one app.
Company formation comparison (UK’s top 10 company formation agents)
Company formation agents: Mint Formations, Your Company Formations, 1st Formations, Companies Made Simple, Rapid Formations, GoSolo, Companies House, 1st Choice Formations, CFS Formations, and Quality Company Formations.
We’ll review the top 10 agents above based on 3 major criteria. Under each criterion, you’ll see its usefulness to small businesses and customer reviews on Trustpilot, and also identify the agents that deliver exceptional service.
#1: Useful features
It has become a norm that company formation agents offer services related to company formation for small business owners. In addition to seamless company registration, founders now look for related services like business bank account opening, accounting and tax services, sales and marketing services, and virtual business addresses, among others.
Having useful features bundled with the company formation service is a means of saving money and time for many SMEs. It makes it easier to centralise the administrative tasks of the new company instead of shuffling among different apps for different services needed by every SME like financial management, payments and invoicing.
Trustpilot reviews
Agent: GoSolo
Customer: Jennifer
“Was looking for a no-nonsense business account, and GoSolo delivered. Simple interface, easy to manage, and the pay by link feature is a real time-saver. Good stuff!”
Agent: Your Company Formations
Customer: Back Office
“Started in 2019 and since, Your company formation has been a great business asset to simplify our admin. Crucial for startups. Many thanks to MIKE & AVERIL for the reoccurring support!
Renewal Smooth as usual. A must have.”
#2 Quality of service
The basic task of a company formation agent is to register companies with the Companies House on behalf of business owners without any errors. All 10 agents being reviewed successfully register companies, with some outperforming others in certain areas like timing, customer support, and clarity of requirements.
Timing: Most of the UK’s best company formation agents will write on their websites that they complete limited company registration within 24 hours. However, this is not true. Limited company registration takes anything from 1 to 5 days, depending on the workload of the Companies House. Trustpilot reviews of many agents contain complaints from customers who were misled by the 24-hour promise on the agents’ websites.
Customer support: While filling the forms and submitting the documentation that is required for a company’s registration, you will have questions, like many other business owners. Getting fast and helpful customer support is crucial to the timely forming of your company.
Clarity of requirements: Agents have to provide clear details regarding the verification requirements, the forms to be filled, and the steps that will be involved in the company registration process. This is important because it will reduce mistakes, remove back-and-forths and help you complete the registration in a timely manner.
Trustpilot reviews
Agent: Companies Made Simple
Customer: Charles Webb
“Clare was amazing, super responsive in emails and she solved my problem with a practical and straightforward solution. So nice to have customer service people like her. I’m very happy with the service.”
Agent: GoSolo
Customer: Harry
“GoSolo’s support team deserves five stars! Quick to respond and go above and beyond to help with any issues.”
#3 Pricing
The Companies House charges £50 for limited company registration while other agents add a fee to make up their charge for their same service, ranging from £51.99 upwards. The only exception is GoSolo which renders the same service for £29. GoSolo does not charge the Companies House fee of £50.
Pricing is important when choosing an agent so that you can avoid hidden fees and unfavourable prices.
Many agents do not have a transparent pricing structure. For instance, on its website, Rapid Formations’ packages all carry affordable fees like £2.99, £14.99, and £39.99 (minus the Companies House fee of £50). However, the renewal price costs a whole lot more because of bundled extras with hidden fees.
Also, some agents have more SME-favourable pricing than others.
Where agents like GoSolo charge less than the Companies House and deliver the registration and company legal documents, others do not.
An example is CFS Formations, which charges £53.50 for its basic package (plus the Companies House fee) and delivers electronic company incorporation documents only without legal documents like Memorandum of Association and Articles of Association. It provides the legal documents only in a higher-tier package costing £67.95.
Best nomination: GoSolo’s pricing is the most favourable. It charges £29 for limited company registration, which is lower than the £50 charged by the Companies House and lower than what any other agents charge.
Trustpilot reviews
Agent: Rapid Formations
Customer: Scott
“Purchased the full package for just over £200.
Company created with multiple address mistakes, with addresses being assigned to the wrong directors. His name was also shortened, but this was my fault. A background check was carried out on the directors and all addresses and full names confirmed. With that in mind, I am not sure how these mistakes were made.
After days of emailing back a forth with no solution they have tried to charge me £80 to remove these mistakes off the public record (They did correct it free of charge).
When you pay a company for a formation, everything should be double-checked and correct. I could have done it better myself.”
Agent: 1st Formations
Customer name: User
“I'm splitting my review into 5 segments so readers can navigate it easily.
Summary:
1. Support agent tried to sell me a package I didn't need for a much more expensive price.
2. DELAYS due to their inefficiency & Failure to keep up to their promise of a fast formation.
3. Promise banking solutions but they don't deliver.
4. Why I wouldn't recommend them if you're just starting out and want a 'ready to do business' company.”
Agent: CFS Formations
Customer name: Mr Smith
“They obviously know what they're doing, but rather than just paying for a service you will end up paying for lots of little extras, which as a novice you're not sure you will need - and they say they're not there to give advice, so good luck!!
As you can see from their response, they do listen and accommodate. Make sure you ask them before committing to anything and you will do well.”
Best UK company formation agent for SMEs
Based on its favourable pricing – £29 – for limited company formation and relevant features like business bank account, invoicing, and contactless payments, GoSolo is the best UK company formation agent for small businesses.
It has a super-fast company registration process. The paid plans start from £29, and it does not charge the Companies House registration fee of £50. The £29 registration package covers your company's formation and legal documents, including the Articles of Association, Shareholders Agreement, Share Certificate, and business account.
GoSolo offers a premium virtual address, same-day mail scanning, and address and mail management in its higher-tiered packages. It also has a dedicated service for non-UK founders in its all-inclusive plan, which is cheaper than that of most formation agents.
The pricing structure is transparent, and there are no hidden services or extra costs; what you see is what you pay. Its extremely low fees, wide range of business account features, and partnership with Adyen ensure that your small business can make more sales in peace and keep more of what you earn.
GoSolo limited company formation service highlights
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Register your company without paying the £50 Companies House fee.
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Get an instant business account with a Debit Mastercard Business card for expenses.
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Send payment links to customers globally and get paid instantly.
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Make checkouts easier and faster with GoSolo Tap to Pay.
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Create branded invoices and track payments simultaneously.
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Make smart business decisions in less time with GoSolo’s sales dashboard.
Registering your small business and opening a business account are two very important steps that go hand in hand in the UK. Your limited company formation is not complete without a business account to separate company funds from personal money. Most company formation agents do not provide business accounts as part of their package. GoSolo’s company formation plans take care of both the formation and business account setup at a fraction of what other agents charge for company registration alone.
Already Ltd? Manage your business account + admin in one app.
