Do I need an accountant to set up a limited company?

If you’re looking to form a new limited company and have discussed it with your accountant, they may offer to register the business for you. But in most cases, you don’t need to use an accountant to form your company.

Instead, consider using a company formation agent, which can register your business with Companies House more quickly and cost-effectively, and offer expert guidance on specific formation details and services.

Why use an agent instead?

Company registration is not generally part of an accountant’s core expertise. But formation agents specialise in setting up limited companies. They can offer advanced insights and advice, including guidance on naming your company, selecting a company type, and complying with relevant legislation.

Specialist expertise in company structures

A reputable agent like Rapid Formations has skilled, qualified teams. We hold certifications, including the Company Secretarial and Share Registration Practice (CCSP) from the Chartered Governance Institute UK & Ireland. All new staff undergo this training. They can issue and transfer shares with an expert understanding of how to structure company ownership correctly and smoothly. They can also provide ongoing tailored support covering areas such as formation, post-registration and secretarial services.

A more affordable solution

Many accountants charge substantial fees for company formation, ranging from £250 to £350 or more. A dedicated company formation agent is a much more affordable option, usually charging substantially less. For example, Rapid Formations’ packages start from £52.99.

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Many accountants use formation agents themselves when starting up a limited company for a client. So going directly with an agent streamlines the process.

Faster formation times

Formation agents typically use dedicated software to submit electronic incorporations, which cuts the registration process time to less than 24 hours. Accountants may be preoccupied with other client tasks, which can lengthen the time it takes to incorporate a new company through their office.

Access to an online company management portal

Formation agents also give you free access to a secure company management portal – something accountants typically don’t offer. This allows clients to update and manage their company records and statutory details from a secure platform.

An agent portal can enable you to track the progress of your company’s registration in real-time as Companies House processes the application.

More control over your registered office address

When accountants handle a company registration, they often use their own address as the registered office for your new company. This can compromise your independence and control as the owner, forcing you to rely on the accountant to manage official matters you may not even be aware of. For instance, you may not receive critical government correspondence directly.

In contrast, company formation agents offer a range of flexible business address services, including options for:

• The registered office
• A service address
• A general business address.

Agents can also offer efficient mail handling solutions, such as Rapid Formations’ Digital Mailroom service. This scans and emails all mail to you on the day it arrives, allowing you to access it anytime through your portal.

These services are also highly affordable. Our Central London registered office address service is just £39 per year, and is a smart way to protect your privacy and maintain a professional image.

When should you use an accountant instead?

While accountants aren’t always necessary for basic company formation, they can play a key role in helping you structure your business in the most tax-efficient way, especially if your situation is complex, involves multiple shareholders, or future investment planning.

Your accountant can give you detailed tax and financial advice, which can impact your choice of corporate structure, especially if you have complex needs. For example, the share structure you choose may be necessary for future investment or exit strategies.

If you’ve already discussed these issues with your accountant, you may prefer that they also form the company and handle the administrative processes involved.

If you want your accountant to have a role in the entity, like a company secretary, you may also feel it makes sense for them to set it up. Or you may simply have other pressing priorities and so decide to let your accountant handle it, regardless of the potential extra fees and time involved.

How to choose the right company formation agent

Not all agents are reliable and supportive. Look for any signs of slow service or poor support as a red flag.

To choose a trustworthy agent, look at how many formations they’ve completed and the number of regular clients, and read online reviews and customer satisfaction ratings. Look for a company with fast, dependable service, attentive customer support, and lifetime assistance beyond the initial formation process.

Over 36,000 companies use Rapid Formations to incorporate every year, and we’ve completed over 750,000 in total. We provide comprehensive support in:

• Registration
• Statutory filings
• In-depth advice
• Company secretarial support
• Ongoing compliance to protect your business long-term.

With unqualified providers, many of these services are often minimal or non-existent, so ensure your agent’s team hold the right certifications.

On TrustPilot, we are graded “excellent” with a 4.8 out of 5.0 rating based on over 11,800 reviews.

Take control of your company setup

When forming a company, it’s critical to understand the process and keep control throughout.

Some new owners with complex tax or financial needs may use an accountant to register their company. However, for most, a formation agent offers a faster and better value setup with greater control over registration and ongoing administration compared to an accountant.

Ready to register your limited company without the extra cost? Compare our company formation packages to find the best fit for your business.