BUSINESS owners have slammed Companies House for increasing its fees and said the move “directly contradicts any ‘pro-growth’ agenda” the Government is pushing.
From 1 February 2026, Companies House will increase the online company-formation fee from £50 to £100, and the annual confirmation-statement fee from £34 to £50. A full list of the changes is available here.
In an official announcement, Companies House said: “Businesses registered with Companies House benefit from limited liability, easier access to credit, more flexibility in raising capital, and enhanced credibility. Our fees remain low by international standards.
“We use income from our fees to incorporate companies and to publish accessible company information worth billions to the UK economy. In addition, our new and enhanced powers under the Economic Crime and Corporate Transparency (ECCT) Act enable us to query and remove false and misleading information from our registers.
“We’re building a more trustworthy environment for consumers and legitimate businesses and reducing the harm they face from those who do not meet their obligations.”
Most business owners slammed the move.
Scott Gallacher, Director at Leicester-based Rowley Turton, cut straight to the chase: “In my view, Companies House is clearly ripping off British business. Calling a 100% increase a ‘change’ is sharp practice, pure and simple.
“If a business were to try to disguise a price rise like this, the Government would be up in arms. Yet here we have a government body doing precisely that.”
Marcus Wright, Managing Director at Bolton-based Bolton Business Finance, said the move will result in fewer companies being formed: “This is just another anti-business move from a major British institution. Making it harder and more expensive to set up a new company will have the exact effect you would expect, namely fewer companies will be set up.
“A small increase would perhaps be justified from the previous £15 fee but £100 is a 733% increase from the cost in 2022.”
Kate Allen, Owner at Kingsbridge-based Finest Stays, said: “The fee hike is symbolic of a government that talks up enterprise while quietly piling on costs.
“But the increase itself is negligible compared to the real pain of running a business; trying to make a profit against the relentless headwinds of corporation tax, National Insurance, VAT and an increasingly anti-business climate.
“Doubling Companies House fees sends yet another discouraging signal to those brave enough to start and run a business in Britain. Will the last person leaving the British business community please turn off the lights?”
Colette Mason, AI Consultant at London-based Clever Clogs AI, drilled down into the numbers: “Between 2024 and 2026, the cost to register a new company has skyrocketed by 733%, and the basic annual compliance fee is up 285% in the same period, according to Companies House’s published fee schedules.
“While funding vital anti-fraud measures is necessary, this policy forces legitimate start-ups and small businesses, the engine of the economy, to foot the entire bill.
“Whilst the fees are still low for now, it’s clear that Labour is again creating a disproportionate financial hurdle for the smallest businesses, this time saddling new entrepreneurs with the costs of fraud, which is spiralling out of control on the government’s watch. It directly contradicts any ‘pro-growth’ agenda.”
But some were more accommodating of the price hikes.
Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said: “If it leads to better checks to prevent fraudulent companies then I think we should accept it as the price of doing business. For an increase in fees we should expect improvements.”
Meanwhile, Sam Alsop-Hall, Chief Strategy Officer & Co-Founder at Birmingham-based Clive Henry Group, said that while the timing isn’t ideal, it could be a positive move longer term: “Some will see the upcoming fee increases as a hidden tax on small businesses, but I think it is a fair trade if the money is used to improve the service.
“The timing may not be ideal, but the truth is that Companies House has been outdated for years. Most entrepreneurs and advisers would be happy to pay a little more for a system that is faster, smarter and more secure.
“If these changes lead to a genuinely modern and efficient Companies House, then it will be a positive step for UK business.”
Photo by Enis Yavuz on Unsplash
