How to register a business in the UK
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If you’ve been dreaming about becoming self-employed, registering a business with HMRC is a milestone moment that makes everything start to seem very real.
But if you’re wondering exactly how to register a business in the UK - don’t worry! We’re here to guide you through the process in five simple steps…
1. Decide on your business structure
Before you can register a business in the UK, you need to decide which business structure to use.
Understanding the different business structures is vital, because it affects how you'll pay tax, your personal liability for business losses, whether you can protect your trading name, and even your access to finance.
The three main business structures in the UK are:
Sole trader
Limited company
Partnership
If this is something you haven't looked into before, you'll want to check out our in-depth guide to UK company formats and business structures to decide which is best for you.
UK business formats: what's the difference?
Whether you’re a sole trader with a simple structure, part of a partnership, or a director of a limited company, there are different legal requirements and tax structures to consider.
2. Decide on your business name
Part of bringing your dream to life is giving it a unique name.
When you register your business, you’ll be asked to provide your business name. And if you’re registering as a limited company, you won’t be permitted to register a name that is too similar to an existing business.
Your business name is also a crucial part of your brand identity, and you should check your chosen business name is available before you start.
Things to consider when choosing a business name
Avoid confusion with existing businesses
Make sure a suitable web address is available - and remember that .com and .co.uk addresses are more memorable than .biz
Choose a name that will appeal to your target audience
3. Register with HMRC
Now you've researched business structures and chosen a unique company name, it's time to register with HMRC!
You can get help setting up a business from an accountant or another third party specialist, but it's a straightforward process that you can do yourself online.
How to register as a sole trader
This is the easiest process. You just need to tell the Government that you’re self-employed and register for tax self-assessment.
You can include your business name when you register but it isn’t afforded any legal protection against others using it. You’ll need to register your business name as a trademark if you want to protect it.
How to register as a limited company
This is a more complicated process, involving a few more steps than registering as a sole trader:
Choosing your business name
Choosing / appointing a company director (compulsory)
Choosing / appointing a company secretary (optional)
Deciding whether you’ll offer shares / have shareholders
Identifying people with control over the company
Preparing and submitting documents about how you’ll run the company (your memorandum and articles of association)
Registering the business
You can find detailed instructions on the Government website about how to register a limited company.
4. Register with Companies House
(If you’re a sole trader, you don’t need to register with Companies House, so skip head to number 5).
If you are a limited company, you’ll also need to register with Companies House. This will automatically register you for corporation tax at the same time.
The process involves:
Paying a small registration fee
Waiting for your business to appear on the register (usually within 24 hours)
Receiving a ‘certificate of incorporation’, which legally verifies your business existence
Registering your business as a limited company means filing some extra paperwork each year. You'll need to share your financials annually through something called "statutory accounts." And every 12 months, you must also send what's called a "confirmation statement" to let Companies House know everything on file is still current.
5. Register with other bodies as required
Your business might need additional permissions or licenses to operate, especially if you plan to work with animals or children, prepare food, serve alcohol or are involved with gambling.
Make sure you get these in place before you start trading.
And that's it - you've registered your business and are ready to take on the world!
Your entrepreneurial journey doesn't end here.
Be sure to check out our resources on growing your business, and if you need funding to help you expand - and have been trading for less than three years - see how much you could borrow with our Start Up Loan calculator.
"We’re delighted to be the 2000th loan recipients!"