A Complete Guide to Registration Expenses

Planning to register with the Care Quality Commission (CQC)? Understanding the full financial commitment is essential before you begin. Many aspiring care providers underestimate the true cost of registration, focusing only on the CQC’s fees whilst overlooking numerous other expenses that are just as crucial.

The reality? Becoming CQC registered typically costs between £10,000 and £25,000 when you factor in all direct and indirect expenses—significantly more than the official CQC registration fee alone.

This comprehensive guide breaks down every cost you’ll encounter, from mandatory fees to hidden expenses that catch many providers off guard. By understanding these costs upfront, you can budget accurately and avoid financial surprises that could delay or derail your registration.

Understanding CQC Registration Fees

Let’s start with the official costs charged by the CQC itself. These fees fund the CQC’s regulatory functions, including processing your application, conducting inspections, and ongoing monitoring of your service.

What Do CQC Fees Cover?

The fees you pay to the CQC support three main activities:

Initial registration: Processing your application and conducting the assessment to determine if you meet the required standards.

Changes to your registration: Any modifications you make later, such as adding new locations, increasing your registered capacity, or providing additional regulated activities.

Monitoring, inspection, and rating: The CQC’s ongoing work to inspect your service, assess quality, assign ratings, and take enforcement action when necessary.

It’s crucial to understand that CQC fees are not one-time costs. You’ll pay an initial application fee, then annual fees every year you remain registered, calculated on your anniversary date.

Application Fees for New Registrations

When you first apply to register with the CQC, you’ll pay an application fee that typically ranges from £800 to £2,500, depending on your service type and scale.

The exact amount depends on:

The type of regulated activity you’re registering to provide
Whether you’re registering as an individual, partnership, or organisation
The number of locations you’re registering
Your service capacity (for some service types)

For example, a small domiciliary care agency registering to provide personal care will pay less than a large care home registering to accommodate 50 residents.

Annual Registration Fees

Once registered, you must pay annual fees to maintain your registration. The CQC has not increased these fees since 2019/20, providing providers with cost stability for several years.

Annual fees vary significantly based on your service type and scale. Here’s what influences your annual cost:

For Care Homes and Nursing Homes:

Fees are primarily based on the maximum number of service users you’re registered to accommodate. The fee bands work as follows (approximate 2024/25 fees):

1–10 beds: £1,000–£1,500 annually
11–20 beds: £1,800–£2,500 annually
21–30 beds: £2,800–£3,500 annually
31–40 beds: £4,500–£5,800 annually
41–50 beds: £6,500–£7,500 annually
51+ beds: Fees increase with capacity, reaching £10,000+ for very large facilities

For Domiciliary Care Agencies:

Community social care providers, including domiciliary care agencies, are charged based on the number of service users receiving care from your location. Smaller providers generally pay between £600 and £2,000 annually, whilst larger agencies with hundreds of service users can pay significantly more.

For Healthcare Services:

Independent healthcare providers (such as clinics, hospitals, dental practices, and substance misuse treatment services) pay fees based on their service type and scale, with costs varying from several hundred pounds to tens of thousands for large hospitals.

For NHS Providers:

NHS trusts and primary care services are charged based on different metrics, including patient list sizes and turnover. These fees can range from £2,000 to over £100,000 for large NHS trusts.

Important Fee Considerations

Multiple locations increase costs: Each registered location typically incurs additional fees. If you operate from multiple sites, your annual costs will be substantially higher.

Registration size matters: Be strategic about your registered capacity. Registering for more beds or service users than you actually need places you in a higher fee band unnecessarily. For example, registering a care home for 40 beds when you only plan to use 25 could cost you an extra £2,500+ annually.

Fee changes require updates: If you expand your service (adding locations, increasing capacity, or offering new regulated activities), you’ll pay additional variation fees plus higher annual fees going forward.

Payment options: The CQC offers two payment methods—a single payment within 30 days of the invoice, or ten monthly instalments via direct debit. No other payment methods are accepted.

You can find detailed fee information and use the CQC’s fees calculator on the CQC fees page.

Beyond CQC Fees: The Full Cost of Registration

Whilst CQC fees are the most obvious cost, they represent only a portion of your total registration expenses. Many providers are surprised by the additional costs required to meet CQC standards and complete the registration process.

1. DBS Checks and Background Screening (£100–£300)

Every person involved in your registration must undergo an enhanced Disclosure and Barring Service (DBS) check. This is a legal requirement under the Health and Social Care Act 2008.

Who needs DBS checks:

Your nominated individual (if registering as an organisation)
Your registered manager
All directors or partners (for companies and partnerships)
Any other key staff who will have contact with service users

Cost: DBS checks typically cost £25–£50 per person. However, if you’re not a registered healthcare professional, the DBS must be countersigned by the CQC, which can take up to 60 working days and may incur additional administrative costs.

Budget £100–£300 for DBS checks depending on your organisational structure.

2. Business Registration and Legal Setup (£12–£500)

Before you can apply to the CQC, you need a legal entity.

Companies House registration: If you’re setting up as a limited company, registration costs £12 online or £40 by post.

Legal advice: Many providers invest in solicitor support to ensure their company structure, articles of association, and contracts are properly established. This can cost £200–£500 for initial setup.

3. Premises and Location Costs (Variable)

The CQC requires that your premises are fully ready before registration is granted. This includes:

Office space: For domiciliary care agencies, you’ll need an office from which to manage operations. Rental costs vary by location from £200–£1,000+ per month, or £50,000+ to purchase.

Care home premises: For residential services, property costs are substantial—potentially hundreds of thousands to purchase or fit out premises to meet CQC standards.

Equipment and furniture: Office furniture, computers, filing systems, phones, and IT infrastructure typically cost £1,500–£5,000 for a small office setup.

Accessibility and safety modifications: Your premises must meet health and safety standards, accessibility requirements, and fire safety regulations. Costs vary depending on your starting point.

4. Insurance (£1,500–£5,000+ Annually)

Mandatory insurance is a legal requirement for CQC registration. You’ll need:

Public Liability Insurance: Covers claims from service users or members of the public for injury or property damage. Typical cost: £500–£1,500 annually.

Employers’ Liability Insurance: Legal requirement if you employ staff. Covers compensation claims from employees. Typical cost: £500–£1,500 annually.

Professional Indemnity Insurance: Covers claims arising from professional negligence or errors. Typical cost: £500–£2,000 annually.

The CQC requires proof of insurance (or a valid quote within its expiry date) with your application. Budget £1,500–£5,000 annually depending on your service size and risk profile.

5. Policies, Procedures, and Documentation (£500–£5,000)

The CQC requires comprehensive, compliant policies and procedures covering every aspect of your service. These must align with current legislation and best practice guidance.

Essential policies include:

Safeguarding vulnerable adults and children
Medicines management
Infection prevention and control
Health and safety
Recruitment and staff management
Complaints handling
Data protection and confidentiality
Emergency procedures
Quality assurance
Dignity and respect
Mental Capacity Act and Deprivation of Liberty Safeguards
Equality and diversity

You have two options:

Create your own policies: This is time-consuming and requires extensive knowledge of legislation and CQC requirements. Many providers spend 100+ hours developing compliant policies.

Purchase professional policy packages: Specialist providers offer CQC-compliant policy sets for £500–£2,000. This ensures compliance and saves significant time.

Hire consultants to develop bespoke policies: Professional support to create tailored, evidence-based policies typically costs £2,000–£5,000.

6. Statement of Purpose and Business Planning (£200–£2,000)

Your Statement of Purpose is a crucial document that describes your service, its aims, and how you’ll meet CQC standards. It must be detailed, accurate, and compliant.

Many providers hire consultants to help develop their Statement of Purpose and comprehensive business plan, costing £200–£2,000 depending on complexity.

7. Training and Qualifications (£1,000–£5,000+)

Staff training is essential for meeting CQC standards.

Registered Manager qualifications: Your registered manager should hold (or be working towards) appropriate qualifications. For social care, this typically means a Level 5 Diploma in Leadership for Health and Social Care, costing £2,000–£3,000.

Mandatory staff training: All staff need training in:

Safeguarding
Health and safety
Fire safety
Moving and handling
Infection control
First aid
Mental Capacity Act
Equality and diversity

External training providers charge £75–£150 per person per course. For a team of 5–10 staff, budget £1,000–£3,000 for essential training.

CQC-specific preparation: Some providers invest in CQC interview preparation and inspection readiness training, costing £500–£1,500.

8. Registration Consultancy and Professional Support (£2,000–£15,000)

Many providers engage specialist consultants to guide them through the registration process. This investment can be invaluable in avoiding costly mistakes and delays.

What consultants provide:

Complete application management
CQC-compliant policies and procedures
Statement of Purpose development
Business plan creation
Interview preparation and coaching
Site visit readiness assessment
Ongoing support until registration is granted

Typical costs:

Basic registration support package: £2,000–£5,000
Comprehensive registration package: £5,000–£10,000
Full-service support with ongoing compliance: £10,000–£15,000

Whilst this might seem expensive, professional support typically results in faster approval, fewer complications, and a solid foundation for ongoing compliance.

9. Data Protection Registration (£40–£60 Annually)

Every organisation that processes personal information must register with the Information Commissioner’s Office (ICO) and pay an annual data protection fee.

Registration is required under the Data Protection Act 2018. The fee depends on your organisation’s size and turnover:

Tier 1 (micro organisations): £40 annually
Tier 2 (small-medium organisations): £60 annually
Tier 3 (large organisations): £2,900 annually

Budget £40–£60 annually for most care providers.

10. Pre-Registration Staff Costs (Variable)

If you hire your registered manager and key staff before registration approval, you’ll be paying salaries without operational income. Depending on your timeline, this could represent:

Registered manager salary: £25,000–£45,000 annually (pro-rated for waiting period)
Administrative staff: £18,000–£25,000 annually (pro-rated)

For a 4-6 month registration process, this could cost £8,000–£20,000 in pre-operational salaries.

11. Contingency and Unexpected Costs (£2,000–£5,000)

Always budget for unexpected expenses:

Additional documents or information requested by the CQC
Follow-up site visits or interviews
Corrections to premises or procedures
Emergency equipment or safety modifications
Professional advice for complex queries

A contingency fund of £2,000–£5,000 provides a safety net.

Total Cost Summary: What Should You Budget?

Here’s a realistic breakdown of total registration costs for different service types:

Small Domiciliary Care Agency

CQC application fee: £800–£1,500
Annual CQC fee (first year): £600–£1,200
DBS checks: £150–£250
Business registration: £50–£200
Office setup and rent (6 months): £1,500–£6,000
Insurance (first year): £1,500–£3,000
Policies and procedures: £500–£2,000
Statement of Purpose: £200–£1,000
Training: £1,000–£3,000
Consultancy support: £2,000–£5,000
Data protection: £40
Pre-operational costs: £5,000–£15,000
Contingency: £2,000–£5,000

Total: £15,000–£43,000

Medium-Sized Care Home (20-30 Beds)

CQC application fee: £1,500–£2,500
Annual CQC fee (first year): £2,800–£3,500
DBS checks: £200–£400
Business registration: £50–£500
Premises costs: £100,000–£500,000+ (purchase/lease/refurbishment)
Insurance (first year): £3,000–£8,000
Policies and procedures: £1,000–£3,000
Statement of Purpose and business plan: £500–£2,000
Training: £3,000–£8,000
Consultancy support: £5,000–£15,000
Data protection: £40–£60
Pre-operational costs: £20,000–£50,000
Contingency: £5,000–£10,000

Total: £141,000–£603,000 (premises costs dominate)

Healthcare Clinic

CQC application fee: £1,000–£2,000
Annual CQC fee (first year): £1,500–£5,000
DBS checks: £150–£300
Business registration: £50–£500
Premises and equipment: £10,000–£100,000+
Insurance (first year): £2,000–£5,000
Policies and procedures: £1,000–£3,000
Statement of Purpose: £500–£1,500
Training: £2,000–£5,000
Consultancy support: £3,000–£10,000
Data protection: £40–£60
Pre-operational costs: £10,000–£30,000
Contingency: £3,000–£8,000

Total: £34,000–£170,000

Cost-Saving Strategies Without Compromising Quality

Whilst registration costs are substantial, there are ways to manage expenses smartly:

1. Register for Realistic Capacity

Don’t over-register. If you’re starting with 15 beds, register for 15–20, not 40. You can always apply to increase capacity later once you’re established and generating income.

2. Leverage Free Resources

The CQC provides free templates, guidance documents, and information on their website. Use these before purchasing expensive alternatives. Key resources include:

CQC application guidance
Statement of Purpose templates
Fees calculators
Regulatory requirements documentation

3. Phase Your Staff Recruitment

Only hire essential staff (registered manager and minimum operational team) before registration. Recruit additional staff once approval is granted and you’re generating income.

4. Choose Strategic Consultancy Support

You don’t necessarily need full-service support. Many providers benefit from targeted help with specific aspects (e.g., policies or interview preparation) whilst handling other elements themselves. This balances expertise with cost.

5. Start with One Location

If you’re planning a multi-location service, consider registering one location initially, establishing operations, generating revenue, and then expanding. This reduces upfront costs and risk.

6. Negotiate Payment Plans

Whilst the CQC requires payment within set timeframes, other service providers (consultants, trainers, insurers) may offer payment plans that ease cash flow.

7. Claim Available Tax Relief

Certain startup costs may be tax-deductible. Consult an accountant to understand what expenses can reduce your tax liability.

Hidden Costs Many Providers Overlook

Beyond the obvious expenses, watch out for these commonly overlooked costs:

Technology and software: Care management systems, electronic care planning, medication administration records, and scheduling software can cost £100–£500 monthly. Budget for setup fees and ongoing subscriptions.

Marketing and branding: Website development, business cards, signage, and initial marketing campaigns to attract clients cost £1,000–£5,000.

Vehicle costs: If providing domiciliary care, staff travel expenses or vehicle purchases/leases can cost £3,000–£10,000+ annually.

Utilities and communications: Phone lines, internet, electricity, water, and waste services typically cost £100–£500 monthly depending on your premises.

Professional memberships: Joining industry bodies or professional associations provides credibility and support but adds £100–£500 annually per membership.

Ongoing compliance costs: Post-registration, you’ll need ongoing audits, policy updates, training refreshers, and quality assurance systems costing £500–£3,000 annually.

Common Cost Mistakes That Delay Registration

1. Inadequate cash reserves: Underestimating costs leads to cash flow problems that delay registration or force you to pause the process whilst securing additional funding.

2. Cheap, non-compliant policies: Buying bargain policy templates that aren’t actually CQC-compliant costs more in the long run when the CQC rejects your application and you must start again.

3. DIY approach without expertise: Attempting to navigate registration alone without sufficient knowledge results in errors, delays, and potentially failed applications.

4. Rushed preparation: Trying to register before you’re genuinely ready (incomplete documentation, inadequate training, premises not finished) wastes application fees and creates regulatory concerns.

5. Ignoring the annual fee commitment: Focusing only on startup costs without budgeting for annual fees can cause financial strain when the invoice arrives.

Planning Your Registration Budget

To create a realistic budget:

1. Identify your service type and scale: This determines your CQC fees and many other costs.

2. List all cost categories: Use this guide to create a comprehensive list of every expense you’ll face.

3. Get multiple quotes: For insurance, training, consultancy, and other services, compare providers to find the best value.

4. Add 20-30% contingency: Unexpected costs always arise. Build in a buffer.

5. Create a cash flow projection: Map when costs will occur during the registration timeline so you can ensure funds are available when needed.

6. Identify funding sources: Determine whether you’re using savings, loans, investors, or grants to fund registration.

7. Plan for post-registration costs: Remember you’ll need working capital to operate for several months before revenue stabilises.

Is Professional Support Worth the Cost?

Many providers wonder whether investing in consultancy support is worthwhile given the cost. Here’s how to decide:

Consider professional support if:

This is your first CQC registration
You have limited time to manage the process yourself
You lack expertise in healthcare regulation
Your application is complex (multiple locations, specialised services)
You want to maximise your chances of first-time approval
The cost of delays exceeds the cost of professional help

You might manage independently if:

You have extensive experience with CQC regulations
You have significant time to dedicate to the process
Your application is straightforward (small, single-location service)
You have access to free support from industry networks

The value equation: A failed or delayed registration could cost £10,000–£50,000 in lost revenue, wasted fees, and additional expenses. If professional support costing £3,000–£8,000 helps you avoid that outcome, it’s excellent value.

Financial Support and Funding Options

If registration costs seem overwhelming, explore these funding options:

Business loans: High street banks, online lenders, and the British Business Bank offer loans for healthcare startups. Expect to need a solid business plan and possibly personal guarantees.

Local authority grants: Some councils offer grants or support schemes for new care providers in areas with service shortages.

Investment: Attract investors who share your vision for quality care provision. This typically requires giving up equity in your business.

Care franchises: Some franchise models provide financial support and structured setups, though you’ll pay ongoing franchise fees.

Social investment: Social investment organisations and foundations sometimes support care sector startups that demonstrate social value.

The Return on Investment

Whilst registration costs are substantial, the potential returns in the care sector are significant. Once established and providing quality care:

Domiciliary care agencies can generate £150,000–£500,000+ annual revenue
Care homes typically achieve £500,000–£3,000,000+ annual turnover
Healthcare clinics vary widely but successful practices generate £200,000–£1,000,000+ annually

The key is delivering excellent care, maintaining strong CQC ratings, building a solid reputation, and managing operations efficiently.

How Cura Compliance Can Help You Budget Effectively

At Cura Compliance, we understand that managing registration costs is as important as meeting regulatory requirements. Our transparent pricing and comprehensive support help you:

Plan realistic budgets: We provide detailed cost breakdowns so you know exactly what to expect.

Avoid expensive mistakes: Our expertise helps you get registration right first time, eliminating wasted application fees and delays.

Maximise value: Our services are competitively priced to provide excellent support without breaking your budget.

Streamline the process: By handling documentation, policies, and communications efficiently, we reduce the time you spend in pre-operational mode paying costs without income.

Build solid foundations: We don’t just help you register—we set you up for ongoing compliance that prevents costly enforcement issues.

Our registration support packages are designed to fit different budgets and needs, from targeted assistance with specific elements to comprehensive end-to-end support.

Ready to discuss your registration budget? Contact us today for a free consultation where we’ll help you understand your costs and explore how we can support you within your budget.

Frequently Asked Questions

Q: Can I start providing care whilst my application is pending?
No. It’s illegal to provide regulated activities until your registration is confirmed. Operating without registration can result in prosecution, fines, or imprisonment.

Q: Are CQC fees refundable if my application is refused?
No. Application fees are non-refundable regardless of the outcome. This is why getting your application right first time is crucial.

Q: Do CQC fees increase each year?
The CQC reviews its fees scheme annually. However, fees have remained stable since 2019/20 for most provider types.

Q: Can I pay CQC fees in instalments?
Yes. The CQC offers direct debit payment in ten monthly instalments, or you can pay the full amount within 30 days of the invoice.

Q: What happens if I can’t afford the annual fee?
Non-payment of fees can result in regulatory action, including suspension or cancellation of your registration. If you’re experiencing financial difficulties, contact the CQC immediately to discuss your situation.

Q: Are there grants available for CQC registration costs?
Some local authorities offer grants or support for care providers in areas with service shortages. Check with your local council. Industry bodies may also have information about available funding schemes.

Q: How much should I budget for ongoing compliance after registration?
Budget £2,000–£10,000 annually for policy updates, training, quality audits, and compliance support, depending on your service size.

Further Reading:

Last updated: November 2025