Do I need an accountant or solicitor to start a UK business?

Introduction

You don’t need an accountant or solicitor to start a UK limited company. Most small business owners can register a company quickly and correctly without a solicitor or accountant – and avoid the high fees they typically charge. The best option for most founders is a specialist company formation agent, which offers fast, compliant setup and expert ongoing support. Here’s what each option really involves and why choosing the right route matters for your business’ future.

Are you legally required to use an accountant or solicitor?

No. UK company law does not require you to use an accountant or solicitor when setting up a limited company.

You can complete the process yourself or, more effectively, use a specialist company formation agent. Accountants and lawyers can register a company on your behalf, but they usually don’t do it directly. In most cases, they pay a formation agent to complete the process, then add a significant markup to your bill.

This means you could end up paying £350 to £500 for something that costs as little as £52.99 through a company formation agent, often using the agent to carry out the work.

Why Companies House isn’t always the best option

While Companies House – the UK government’s official registrar of companies – allows direct registration, it does not offer advice or anything beyond the minimum process. That’s why companies like 1st Formations remain the preferred route for thousands of new limited company owners.

When you use Companies House directly, you:

• Only receive a Certificate of Incorporation – no share certificates, no company registers, and no guidance.
• Get no advice on structure, share allocation, or choosing the right company type.
• Have no access to support services like a registered office address, directors’ service address, or mail forwarding.
• Risk forming the wrong type of company, with the wrong share setup, which can be costly to fix later.

Companies House is a government department, not a business advisor. There’s no safety net if you make a mistake. That’s why thousands of UK entrepreneurs choose a company formation agent instead, to get it right the first time.

Why accountants and solicitors aren’t the best route either

Many new founders ask, 'Do I need an accountant or solicitor to start a business?' and assume it's the safest option. In reality, this is often the most expensive and least efficient way to form a company.

Here’s why:

• They outsource to agents. Most accountants and solicitors use formation agents to complete the actual registration. You’re paying them several hundred pounds for something that costs under £100.
• They’re not specialists. Accountants and lawyers focus on their own disciplines, not company formation. Errors in your setup, such as the wrong share structure, can create serious issues later.
• They charge inflated fees for simple post-formation updates. Tasks like appointing a director or transferring shares typically cost £50–£80 with a formation agent, but £500 or more through an accountant or solicitor.
• Their address services are basic. Unlike 1st Formations’ digital mailroom (which securely opens, scans, and emails your company mail), many accountants manually forward physical mail. A process that is slow and inconsistent.

Simply put: if you’re forming a company, you’re better off going directly to the experts who do it every day.

Why a company formation agent is the wise choice

Specialist formation agents are built for one purpose: to help you set up and run your company correctly from day one.

Here’s what makes a formation agent different:

1. Expert guidance from specialists

Formation agents process thousands of companies every month and can advise you on:

• The right company type (limited by shares, limited by guarantee, LLP, etc.)
• How to structure your shares correctly
• Naming rules, including sensitive words or permissions you might need

2. Comprehensive formation packages

Unlike Companies House, formation agents provide complete incorporation documentation, including:

• Certificate of Incorporation
• Share certificates
• Memorandum and articles of association
• Statutory company registers
• Agents also offer add-ons like:
• Registered office address
• Directors’ service address
• Business address and mail forwarding
• Company secretarial services
• Assistance in setting up a business bank account
• VAT, PAYE and ICO registration
• Company secretarial services

3. Ongoing support and compliance

Starting your business isn’t just about day one. Most agents provide post-incorporation services, including:

• Filing your confirmation statement
• Managing share transfers or new appointments
• Offering guidance on next steps, such as opening a business bank account or registering for taxes

This combination of speed, accuracy, and ongoing support makes formation agents the lowest-risk and best-value option for UK startups.

DIY vs accountant vs formation agent: Real-world comparison

Your filing responsibilities after formation

Whether you form your company yourself or through an agent, you remain legally responsible for ensuring your company filings are completed on time.

You must submit:

A formation agent can’t file these for you automatically, but many provide ongoing secretarial and compliance services to simplify the process.

So, should you use an accountant or a solicitor to start a business?

In short, no. In most cases, you don’t need an accountant or solicitor to set up a business in the UK – and often, you shouldn’t. There are, however, times when a solicitor would be beneficial (see below).

Accountants and solicitors are valuable once your business is trading and generating income, but for the company formation stage, they add cost without adding expertise. Companies House is cheap, but risky.

The most effective route is to use a specialist formation agent, which combines affordability, accuracy, and genuine support. You’ll get expert help choosing the right company type, access to professional address services, and ongoing compliance tools, all backed by the UK’s most trusted name in company formation.

When might you want to use a solicitor?

For most UK company founders, there’s no need to hire a solicitor when setting up a limited company. Company formation agents handle everything required to get your business legally incorporated, quickly, correctly, and at a fraction of the cost.

However, there are a few situations where legal advice can be helpful, especially if your business setup is more complex. A solicitor may be worth consulting if you:

• Need a tailored shareholder or partnership agreement
• Require issuing different classes of shares or bringing in future funding
• Need to register trademarks or protect intellectual property

Even in these cases, legal input is a “nice to have”, not a “need to have.” Most formation agents can guide you on structure and documentation for standard setups, without the cost of a solicitor.

For clarity and compliance, use a solicitor only when your company has specific legal complexities beyond the typical incorporation process. For everyone else, an experienced company formation agent remains the safest and most cost-effective route.