How to Register a Business in the UK: Step-by-Step Guide

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How to Register a Business in the UK?

Starting a business in the UK is exciting, but getting it legally registered is essential. Whether you’re setting up as a sole trader, partnership, limited company, or LLP, this step-by-step guide walks you through everything you need to know about how to register a business in the UK.

What business structure should you choose to register a business in the UK?

Choosing the right structure depends on your business size, tax situation, liability tolerance, and growth plans. The three most prevalent structures in the UK are:

Sole Trader – ideal for individuals starting small
Business Partnership / LLP – for shared ownership
Limited Company – for formalised growth and liability protection

Let’s break each down with key registration steps and requirements.

What is a sole trader and when should you register as one?

A sole trader is the simplest business structure. Because you work for yourself, you are individually in charge of the money of your company.

Ideal if you’re freelancing or running a small local business
You must register if you earn over £1,000 per year
Register online with HMRC

Key Steps:

Create a Government Gateway account
Provide your NI number and business details
Get a Unique Taxpayer Reference (UTR)

What is a business partnership or LLP and how do you register it?

In a partnership, two or more individuals share duties and earnings.

Standard partnerships: register with HMRC
LLPs (Limited Liability Partnerships): register with Companies House

Key Documents:

Partnership agreement (optional but recommended)
LLPs need incorporation forms similar to a limited company

How to Register a Business – Comparison Table

Feature	Sole Trader	Partnership	LLP	Limited Company
Legal Status	Not separate	Not separate	Separate	Separate
Liability	Unlimited	Unlimited (standard)	Limited	Limited
Taxed as	Individual	Individuals	Self-employed partners	Corporation
Reporting Requirements	Low	Medium	High	High
Suitable For	Freelancers	Friends, family, teams	Professionals, agencies	Startups, growth companies
Filing Obligations	Self Assessment	Self Assessment	Companies House + HMRC	Companies House + HMRC
Cost to Register	Free	Free (standard)	£10+	£12+

What is a limited company and why register with Companies House?

A limited company offers limited liability protection. It’s a separate legal entity.

Register online for £12 or by post for £71
Requires articles of organisation, a business name, an address, and a minimum of one director.

You Will Need:

SIC code (Standard Industrial Classification)
Shareholder details
Persons of Significant Control (PSC) info

How do you pick a business name when registering a UK business?

Choosing the right name is crucial:

Do’s and Don’ts for Business Names

Do’s	Don’ts
Check Companies House register	Use offensive language
Make sure the name is distinct.	Pick a name that is too similar to that of other businesses.
Trademark your name with the Intellectual Property Office	Include ‘Ltd’ if not registered as a company

Visit the Intellectual Property Office (IPO) to look for existing trademarks.

“Want to start a business easily? Here are some of the best ideas to get you started.”

Where do you need a UK business address and what counts?

For correspondence, tax, and legal reasons, your company address is crucial.

Sole Traders:

You must provide a correspondence address for HMRC communications.
This might be a virtual business address, your home address, or a rented office.

Limited Companies & LLPs:

The registered office must be located within the jurisdiction of the United Kingdom.
- England and Wales
- Scotland
- Northern Ireland
This is the official address where legal notices and HMRC/Companies House mail are sent.
A actual address is required, not only a PO Box.

Can You Use a Virtual Office?

- Yes, if they fulfil the necessary conditions, virtual addresses are permitted.
- They must provide mail forwarding and be manned during regular work hours.
- Common for startups, remote businesses, and digital entrepreneurs.

What documents and forms do you need to register your business?

The documents vary by business type, but here are the essentials:

Structure	Required Documents
Sole Trader	National Insurance number, ID, business details
Partnership	Details of all partners, optionally a partnership agreement
LLP	Form LL IN01, details of members, registered office, and LLP agreement
Limited Company	Memorandum & Articles of Association, PSC information, SIC code, and Limited Company Form IN01

How do you register a sole trader with HMRC?

Steps:

Go to the HMRC Self-Assessment registration page.
Create a Government Gateway account.
Submit your business and personal details.
Your Unique Taxpayer Reference (UTR) will be mailed to you.
Maintain documentation and submit an annual Self Assessment return.

Deadline:

How do you register a limited company at Companies House?

Online Registration:

Use Companies House Web Incorporation.
Cost: £12 (online) or £71 (by post).

You Will Submit:

- Form IN01
- Company name and registered office address
- At least one director
- Shareholder and share details
- Memorandum and Articles of Association
- PSC (Persons of Significant Control) information

How to register a partnership or LLP?

Traditional Partnership:

For the Self Assessment, each partner needs to register with HMRC separately.
The partnership tax return is the responsibility of one designated partner.

LLP (Limited Liability Partnership):

Like a limited business, register with Companies House.

- Provide:
  - Names of designated members
  - LLP agreement (not legally required but essential for clarity)
  - Registered office, business nature (SIC), and PSC details

How do you register for taxes and other obligations after incorporating?

When do you register for Corporation Tax, VAT, PAYE?

Key Tax Registrations:

Tax Type	Who Needs It	When to Register
Corporation Tax	All limited companies	Within 3 months of starting trading
VAT	Businesses with £85,000+ turnover	As soon as you expect to exceed the limit
PAYE	If you employ staff or pay directors	Before your first payday

You can register for all these via HMRC’s Government Gateway portal.

When do you file annual accounts and Confirmation Statements?

Business Type	Filing Requirements
Sole Trader	File Self Assessment tax return yearly (by 31 January)
Partnership	Same as above, plus partnership return
Limited Company	Submit:

- Annual Accounts to Companies House (usually within 9 months of year-end)
- Confirmation Statement annually (usually within 14 days of the incorporation anniversary)

How do you open a business bank account in the UK?

Is it Mandatory?

Required for limited companies (separates personal from company funds).
Strongly recommended for sole traders and partnerships for clear bookkeeping.

Documents Needed:

Proof of ID (passport or driving licence)
Proof of address (utility bill, bank statement)
Business details (UTR for sole traders or company registration number)
Certificate of Incorporation (Ltd/LLP)

Popular choices include:

- High street banks: Barclays, Lloyds, HSBC
- Digital banks: Tide, Monzo Business, Starling Bank, Revolut Business

What about bookkeeping, record-keeping and tax registrations?

Maintain payroll, VAT, income, and spending records.
Use accounting software like Xero or QuickBooks
Set up funds for national insurance and taxes.

What are the other steps after registering your UK business?

Once you’re registered, focus on setup and compliance:

- ✅ Get business insurance (e.g. public liability, employer’s liability)
- ✅ Apply for any industry-specific licences
- ✅ Build your brand: domain name, logo, website, business email
- ✅ Follow GDPR rules if handling customer data

What happens if you don’t register your small business in the UK?

❌ Fines from HMRC for failing to register on time.
❌ Interest and penalties for missed tax deadlines.
❌ Illegal trading risk in regulated sectors.
❌ No access to loans, grants, or business support schemes.

Even if you earn little, it’s often worth registering.

Do you need to register your business if you earn less than £1000?

No, the trading allowance is applicable if your total income for a tax year is less than £1,000.

- Yes: If you:
  - Want to claim tax-deductible expenses
  - Expect to grow your income soon
  - Want to build business credit history

When do you need to register your business with HMRC?

Business Type	Deadline to Register
Sole Trader	By 5 October following the first tax year end
Partnership	Same as sole trader (for all partners)
Limited Company	Register with Companies House first, then with HMRC for Corporation Tax within 3 months of trading

Conclusion

Registering a business in the UK is a crucial first step to building a successful enterprise. By understanding your business structure, legal requirements, and financial obligations, you ensure a smooth launch. Follow this step-by-step guide to register your business in the UK and build with confidence.

FAQs – How to register a business

How soon can I start trading after registering?

Immediately after completing the required registration process.

Can I register a business if I live abroad?

Yes, provided that your office address is registered in the UK.

How much does it cost to register different structures?

Sole trader: free. Ltd company: £12 online. LLP: £12 online.

What happens if I miss the Self-Assessment deadline?

You may face fines starting from £100.

Can I simply register the name or do I require a trademark?

You can register a name without a trademark, but trademarking protects your brand legally.