Business Setup Checklist

A comprehensive start-up checklist covering the commercial, legal, tax, accounting, banking and operational decisions involved in starting a UK business.

RegistrationTax setupRecords

Startup checklist

Business Setup Checklist UK

A comprehensive start-up checklist covering the commercial, legal, tax, accounting, banking and operational decisions involved in starting a UK business.

Phase 1: Validate the business

1Define the problem your product or service solves.

2Identify your target customer and buying trigger.

3Research competitors, pricing and demand.

4Estimate startup costs and monthly fixed costs.

5Build a simple cash-flow forecast.

Phase 2: Choose the structure

Question	Sole trader	Limited company
Registration	HMRC/Self Assessment when required.	Companies House incorporation plus HMRC tax registration processes.
Legal identity	Business and individual are generally the same legal person.	Company is a separate legal entity.
Administration	Generally simpler.	More formal records and filings.
Taking money out	Drawings are not salary in the company sense.	Salary, dividends and other transactions need correct treatment.

Phase 3: Choose the name

Search Companies House if incorporating, search UK trade marks, check the domain, check social handles and consider whether the name is easy to spell. A domain being available does not give you trade mark rights.

Phase 4: Register correctly

Sole trader

Set up the business records, determine whether Self Assessment registration is required, and register with HMRC when the rules require it. GOV.UK provides the current sole-trader registration process.

Limited company

Choose the company name, directors, registered office and PSC information, prepare the incorporation information and register through Companies House. After incorporation, establish accounting, Corporation Tax, payroll and company-record processes as applicable.

Phase 5: Finance and banking

Open appropriate banking arrangements.
Set up accounting software.
Create invoice templates and payment terms.
Decide how expenses will be approved and recorded.
Set a tax reserve policy.
Separate personal and business spending.

Phase 6: Tax and compliance

Check VAT registration.
Check Making Tax Digital requirements.
Check PAYE and pension duties if employing staff.
Arrange relevant insurance.
Check licences or sector-specific permissions.
Build a filing and payment calendar.

Phase 7: Operational setup

Contracts and terms of business.
Privacy and data protection arrangements.
Cybersecurity and password controls.
Supplier agreements.
Customer support process.
Record retention and document storage.

First 90 days

Review actual sales against the plan, gross margin, cash balance, debtor days, recurring costs and tax reserves. A business setup is not complete on registration day: the first few months are when systems either become habits or become future problems.