Here's a straightforward guide to registering a business in the UK:
Choose your business structure
Sole trader — simplest option, you and the business are legally the same entity. Just register for Self Assessment with HMRC.
Partnership — two or more people sharing a business. Register with HMRC; consider a formal partnership agreement.
Limited company (Ltd) — separate legal entity from you. More admin, but offers liability protection and can look more credible to clients.
Limited Liability Partnership (LLP) — combines partnership flexibility with limited liability protection.
Registering a Limited Company (most common formal route)
- Choose a company name — check it’s available on the Companies House register
- Registered office address — must be a UK address (can be your home)
- Appoint directors — at least one required; must be 16+
- Issue shares — at least one shareholder needed
- Register with Companies House — online via Companies House Web Filing, costs £50 (same-day) or £12 (standard, usually done within 24hrs) or you can use a company such as 1st Formations
- Register for Corporation Tax — must do this within 3 months of starting to trade (via HMRC)
After registering
- VAT registration — mandatory if turnover exceeds £90,000/year; optional below that
- PAYE — register as an employer if you’ll pay staff or yourself a salary
- Business bank account — required for limited companies; strongly advisable for sole traders
- Licences/permits — some industries (food, financial services, etc.) require additional authorisations
Sole trader route (simpler)
Just register for Self Assessment on HMRC’s website before 5 October of your second tax year in business. No Companies House registration needed.
