How to Start a Business in the UK
A practical step-by-step guide to getting a UK business off the ground, choosing a structure, setting up your finances and staying on top of the admin that comes with running a business.
Work through the roadmap below before you register, spend heavily on branding or commit to long-term contracts.
Your business startup roadmap
ADVERTISE HEREPromote your business to Accounting Hire visitors.Ask about advertising opportunities →There is no single order that works for every business, but these are the main decisions most new founders need to work through.
Validate the idea
Define the customer, problem, offer, pricing and first route to market.
Choose your name
Check company names, trade marks, domains and social handles.
Register correctly
Deal with HMRC or Companies House and check any activity-specific registrations.
Set up finances
Put banking, invoicing, bookkeeping, accounting software and payment systems in place.
Plan compliance
Map tax, VAT, payroll, insurance, licences, filing and record-keeping duties.
Sole trader or limited company?
The right structure depends on your circumstances, commercial plans and how you want the business to operate. The table below gives you a starting point rather than a recommendation.
| Consideration | Sole trader | Limited company |
|---|---|---|
| Getting started | Generally simpler to set up and administer. | Requires incorporation and ongoing company administration. |
| Legal identity | You operate the business personally. | The company is a separate legal entity. |
| Tax | Taxable profits are generally reported through Self Assessment when required. | Company profits are subject to Corporation Tax and personal extraction can create additional tax considerations. |
| Administration | Usually lighter, but accurate records and tax compliance are still essential. | More formal company records, accounts and filing responsibilities. |
| Taking money out | Business profits are generally treated as your income for tax purposes. | Directors may use salary, dividends or other permitted methods, depending on circumstances. |
| Growth & ownership | Can be straightforward for an owner-managed business. | Can provide a structure for shareholders, investment and retained profits. |
Write down expected turnover, likely costs, whether you will employ anyone, whether you need investors and how you expect to take money from the business. Those questions give you a much better starting point for professional advice.
What to check before choosing a business name
Companies House
Search for identical or confusingly similar company names if you plan to incorporate.
Trade marks
Check the UK trade mark database and consider whether another business already has rights in a similar name.
Domain name
Check the main domain you want as well as sensible alternatives before committing to branding.
Social handles
Check whether the name is usable on the platforms where you expect customers to find you.
Startup costs to plan for
Your costs will depend heavily on the type of business. Instead of relying on a generic startup-cost figure, build a simple budget around the categories below.
| Cost area | What to budget for | Questions to ask |
|---|---|---|
| Accounting & software | Bookkeeping, accounting software, tax returns and professional advice. | What will I do myself and what needs specialist help? |
| Insurance | Business, professional, employer or sector-specific cover where appropriate. | What risks does my activity create? |
| Marketing | Website, branding, advertising, content and customer acquisition. | What can I test cheaply before committing? |
| Equipment | Computer, phone, tools, furniture, stock or specialist equipment. | What is essential on day one? |
| Premises | Rent, deposits, utilities, business rates or coworking costs where relevant. | Can I start from home or use flexible space? |
| Professional fees | Legal, accounting, design, consultancy and other specialist services. | Which decisions are worth paying an expert to get right? |
Business registration checklist
Know what you sell, who buys it and how you will charge.
Compare sole trader and limited company implications.
Review company names, trade marks, domains and social handles.
Complete the relevant HMRC or Companies House registration.
Separate business transactions and create a clear payment process.
Track sales, expenses, invoices, receipts and supporting evidence.
Review VAT, payroll, insurance, licences and sector-specific requirements.
Put tax, filing, payroll and renewal dates somewhere you will actually use.
Your first 90 days
Days 1–30
Validate demand, choose the structure, secure the name and establish your basic financial systems.
Days 31–60
Start selling, issue invoices, track costs, review cash flow and refine your pricing.
Days 61–90
Review what is working, improve processes, check upcoming deadlines and decide where expert help is needed.
Need help getting the numbers right?
Compare accountants, review services and find a provider that fits the structure and stage of your business.