Company Formation Agent Or Companies House – What’s The Best Way To Set Up Your Company?

If you have chosen to open a new company, there are two ways that you can go through the registration process. You can opt to work with a company formation agent or you can go directly through Companies House yourself for the process. Choosing among the two options requires that you understand a bit more about each of the processes and the benefits that they both offer.

Companies House is the only authorized body in the UK that you can go through to register a new company. So, whether you choose to go through Companies House yourself or have a company formation agent do so, it will ultimately pass through to Companies House.

You first have to understand that Companies House does not allow for the public to register businesses online. This means that if you want your company registered quickly, you should go through a company formation agent. Company formation agents are permitted by Companies House for online registration so you can get your company registered much more quickly and begin trading much sooner than if you go through Companies House yourself.

Typically, if you go through Companies House yourself, you could be looking at up to three weeks before your registration process is complete. If you go through a company formation agent like, this process is shortened to around three business hours. This means that you can have your company registered and begin trading weeks before the process would be complete if you register it yourself through Companies House. Of course, if you are not yet ready to begin trading and need this extra time to get things started, doing the process yourself makes a bit more sense.

The main difference between these two options has to do with your own skills. If you are not acquainted with the process and may need assistance filling out the mounds of paperwork that are required for new company formation, then an agent may be a better choice. Company formation agents have experience in the paperwork required to register a company and can help you to fill it out properly. If you submit paperwork to Companies House that is improperly filled out, it could take you another few weeks to get your business up and running while you iron out the mistakes and correct them.

With regards to cost, you will be required to pay a standard fee of £40 for company registration if you go through Companies House yourself. If you choose to enlist the assistance of a company formation agent, your cost is around £25. This includes the registration fees from Companies House, which are lower with electronic submission. This also includes the drafting of your Memorandum and your Articles of Association, which you will not have to do yourself. For many, this alone is a reason to enlist the services of a company formation agent.

Ultimately, the choice will be yours. You can choose to register your company via post through Companies House if you do not feel as if the paperwork is too overwhelming or you can have your business set up much more quickly by using a company formation agent.


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