Starting a Business in the UK
everything from registration to tax obligations
Your Journey to Business Ownership
Starting a business in the UK is an exciting venture, but it requires careful planning and understanding of legal requirements, tax obligations, and financial management. Whether you’re launching a small freelance operation or building the next big enterprise, getting the foundations right from the start is crucial.
This guide walks you through the essential steps to establish your business properly, helping you avoid common pitfalls and set yourself up for success from day one.
6 Essential Steps to
Start Your Business
Follow these steps to establish your business on solid foundations
Choose Your Business Structure
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Limited Company: Separate legal entity, limited liability protection, more complex administration
- Partnership: Two or more people share business responsibilities, profits, and liabilities
- Limited Liability Partnership (LLP): Partners have limited liability protection
Register Your Business
- Register as self-employed with HMRC (sole trader or partnership)
- Register your company with Companies House (limited company)
- Choose and register a business name (ensure it's not already in use)
- Register for Corporation Tax within 3 months of starting to trade (limited company)
- Apply for a Unique Taxpayer Reference (UTR) from HMRC
Set Up Business Bank Account
- Open a dedicated business bank account
- Keep all business transactions separate from personal ones
- This makes accounting and tax returns much easier
- Consider business credit cards for expenses tracking
- Set up payment processing if selling goods or services
Get Business Insurance
- Public Liability Insurance (essential for most businesses)
- Professional Indemnity Insurance (for professional services)
- Employers' Liability Insurance (legally required if you employ staff)
- Product Liability Insurance (if you manufacture or sell products)
- Buildings and Contents Insurance (for business premises)
Understand Your Tax Obligations
- Income Tax and National Insurance (sole traders and partnerships)
- Corporation Tax (limited companies - currently 19-25%)
- VAT registration if turnover exceeds £90,000 (or voluntary registration)
- PAYE and National Insurance for employees
- Submit annual accounts and tax returns on time
Set Up Record Keeping
- Choose accounting software (Xero, QuickBooks, Sage, etc.)
- Keep records of all income and expenses
- Store receipts and invoices (digital copies acceptable)
- Track mileage if using vehicle for business
- Maintain records for at least 6 years
Company Formation
Forming a company has to be done in accordance with strict Companies House requirements and it may be a new experience for you. Before you start our formation process you will need to pick a unique company name. Followed by a quick search in the existing Companies House registration database, our expert accountants can form a company for you within hours.
Our experienced accountants can also register your new domain and set up your company email address for you to start communicating using your new business identity straightway. We can also assist you with opening your new business bank account, once again usually on the same day.
Company Secretarial
In today’s fast-paced business environment, directors are increasingly focused on driving growth and managing core operations. As a result, less time is available for administrative responsibilities-yet these duties remain essential.Since April 2008, private limited companies are no longer legally required to appoint a company secretary unless specified in their Articles of Association. However, the responsibilities traditionally managed by a company secretary- such as shareholder communication, corporate governance, and statutory compliance-still need to be fulfilled. Without a company secretary, these obligations fall directly on the directors, creating additional pressure and increasing the risk of oversight. Many companies therefore continue to appoint a secretary to ease the administrative burden and ensure compliance.At AHN Accountants, we ensure that all statutory requirements under the Companies Act and your company’s Articles of Association are fully met. This includes preparing and filing statutory forms, as well as drafting accurate documentation to record decisions made by directors and shareholders. We also manage the company secretarial tasks that often catch businesses off guard, including maintaining statutory registers, completing annual returns, organising AGMs, handling share transfers, and managing dividend documentation. With our support, you can stay compliant and free up valuable time to focus on running your business effectively.
Essential Business
Considerations
Important aspects to address when establishing your business
Company Formation
Forming a company has to be done in accordance with strict Companies House requirements and it may be a new experience for you. Before you start our formation process you will need to pick a unique company name. Followed by a quick search in the existing Companies House registration database, our expert accountants can form a company for you within hours.
Our experienced accountants can also register your new domain and set up your company email address for you to start communicating using your new business identity straightway. We can also assist you with opening your new business bank account, once again usually on the same day.
Company Secretarial
In today’s fast-paced business environment, directors are increasingly focused on driving growth and managing core operations. As a result, less time is available for administrative responsibilities-yet these duties remain essential.Since April 2008, private limited companies are no longer legally required to appoint a company secretary unless specified in their Articles of Association. However, the responsibilities traditionally managed by a company secretary- such as shareholder communication, corporate governance, and statutory compliance-still need to be fulfilled. Without a company secretary, these obligations fall directly on the directors, creating additional pressure and increasing the risk of oversight. Many companies therefore continue to appoint a secretary to ease the administrative burden and ensure compliance.At AHN Accountants, we ensure that all statutory requirements under the Companies Act and your company’s Articles of Association are fully met. This includes preparing and filing statutory forms, as well as drafting accurate documentation to record decisions made by directors and shareholders. We also manage the company secretarial tasks that often catch businesses off guard, including maintaining statutory registers, completing annual returns, organising AGMs, handling share transfers, and managing dividend documentation. With our support, you can stay compliant and free up valuable time to focus on running your business effectively.
Important Reminders
- Self-Assessment Registration:
Register by 5 October in your business’s second tax year
- Corporation Tax Registration:
Within 3 months of starting to trade
- VAT Registration:
Within 30 days of going over the £90,000 threshold
- Self-Assessment Tax Return:
Online: 31 January. Paper: 31 October
- Corporation Tax Return:
12 months after your accounting period ends
- VAT Returns:
One month and 7 days after your VAT quarter ends
Important Reminders
- Self-Assessment Deadlines:
31 January for online returns (previous tax year) and payment of tax due. 31 July for second payment on account.
- Self-Assessment Deadlines:
31 January for online returns (previous tax year) and payment of tax due. 31 July for second payment on account.
- Self-Assessment Deadlines:
31 January for online returns (previous tax year) and payment of tax due. 31 July for second payment on account.
- Self-Assessment Deadlines:
31 January for online returns (previous tax year) and payment of tax due. 31 July for second payment on account.