This is the checklist for founders who have done the thinking and are ready to act. Not an explanation of why each step matters - a structured list of what to do, in roughly the right order, so you can start trading with confidence and nothing missed.
The steps below are UK-specific. The HMRC registrations, Companies House requirements, and compliance obligations here apply to UK businesses only - generic startup checklists often mix in requirements from other jurisdictions that simply do not apply to you.
Not legal or tax advice
This checklist covers the standard steps for most UK founders. If your situation is complex - multiple founders, unusual business activities, VAT-sensitive sectors - verify your specific requirements with a qualified adviser before trading.
Before You Start: The Decisions to Make First
Three decisions need to be settled before anything else. Get these wrong and you create work for yourself later.
Pre-launch decisions
Confirm your business idea is viable - you have identified who will pay you and roughly what they will pay.
Choose a business name and check it is not already in use at Companies House (companieshouse.gov.uk) or as a registered trademark (gov.uk/search-for-trademark).
Check your chosen name does not include restricted words (like 'Royal', 'Bank', or 'Institute') that require permission to use.
Decide on your business structure - sole trader or limited company. This decision affects everything below.
Business Structure: Sole Trader or Limited Company
Your business structure determines your legal obligations, how you pay tax, and what happens if things go wrong. Most new UK founders choose one of two routes.
Sole trader setup
Decide you are comfortable with unlimited personal liability - your personal assets are exposed if the business has debts.
Confirm your income will be taxed through Self Assessment (Income Tax and National Insurance).
Note: no Companies House registration required. You exist as a business the moment you start trading.
Limited company setup
Confirm you want limited liability - the company is a separate legal entity and your personal assets have more protection.
Identify your director(s) and shareholder(s) before registering.
Prepare a memorandum and articles of association (Companies House provides a standard template for straightforward setups).
Register at companieshouse.gov.uk - costs £100 online (as of 1 February 2026). Processing time is typically same-day for digital filings, but can vary.
Not sure which structure fits?
Most founders starting out alone with low initial income begin as sole traders for simplicity. Limited companies typically make more sense once you are earning above the Income Tax higher rate threshold, have co-founders, or need the credibility a limited company provides. If you are genuinely unsure, an accountant can advise you in a single short call.
Registering With HMRC: What You Must Do and When
HMRC registration is not optional. The deadline varies by structure - but the rule of thumb is: register as soon as you start trading, not when you first get paid.
Sole trader - HMRC registration
Register for Self Assessment at gov.uk/register-for-self-assessment. Do this by 5 October in your business's second tax year at the latest - but register immediately to avoid scrambling.
Keep your Unique Taxpayer Reference (UTR) number when HMRC sends it - you will need it for every tax return.
Set up a Government Gateway account at gov.uk/log-in-register-hmrc-online-services if you do not have one.
Check whether you need to register for VAT - the threshold is currently £90,000 in taxable turnover in any rolling 12-month period. Register voluntarily if it makes sense for your business earlier.
Limited company - HMRC registration
Register for Corporation Tax within 3 months of starting to trade - do this at gov.uk/register-for-corporation-tax. HMRC will also be notified automatically when you register with Companies House, but you still need to complete this step.
Register for PAYE (Pay As You Earn) if you will pay yourself a salary through the company - do this at gov.uk/register-employer.
Check VAT registration requirements as above.
If you are a director, ensure you register for Self Assessment personally - directors must file a return regardless of salary level.
Companies House: If You Are Setting Up a Limited Company
This section applies to limited companies only. Sole traders skip this entirely.
Companies House obligations
Register the company at companieshouse.gov.uk or via an authorised formation agent. Online registration costs £50.
Store your company's Certificate of Incorporation safely - banks and clients will ask to see it.
File your first confirmation statement within 14 days of the anniversary of incorporation (this replaces the old Annual Return). Cost: £50 online (as of 1 February 2026).
Know your first accounts deadline - for a new company, statutory accounts are due 21 months after incorporation (not just 12). After that, the deadline is 9 months after your year end.
Register a registered office address - this is the official address for legal correspondence and must be in the same country as your company is registered (England, Scotland, or Wales).
Ensure all directors and persons with significant control (PSC) are listed on the Companies House register.
Your registered address is public
Your registered office address appears on the public Companies House register. If you work from home and prefer not to publish your home address, use a registered address service before you incorporate - changing it afterwards is possible but adds an extra step.
Business Banking: Opening Your Account Before You Invoice
A dedicated business bank account is legally required for limited companies and strongly recommended for sole traders. Mixing personal and business money creates accounting headaches that compound quickly.
Business banking checklist
Open a dedicated business bank account before you send your first invoice. Most UK challenger banks (Starling, Monzo Business, Tide) offer a quick digital application process, though opening times vary and are not guaranteed - Starling, for example, reviews each application individually and restricts eligibility to UK-registered businesses with UK-resident PSCs.
Limited companies: have your Certificate of Incorporation, UTR, and director identification ready - banks require these to open a business account.
Sole traders: most banks require proof of trading activity or your UTR. Some will open an account pre-trading.
Set up a basic bookkeeping record from day one - a spreadsheet works at first, but accounting software (FreeAgent, QuickBooks, Xero) becomes worth the cost quickly.
Confirm your payment processing option if you need to take card payments - Stripe, SumUp, and Square are common starting points for UK founders.
Business Insurance: What You Need From Day One
The minimum insurance you need depends on your business type. Some cover is legally required; some is effectively mandatory if you work with clients; some is simply sensible.
Insurance requirements
Employers' Liability Insurance - legally required if you employ anyone (even part-time or temporary staff). Minimum £5 million cover. Not required if you work alone.
Public Liability Insurance - not legally required but often demanded by clients and venues before you can work with them. Strongly recommended if you interact with the public, clients, or third-party property.
Professional Indemnity Insurance - essential if you provide advice, designs, plans, or professional services. Many professional bodies require it. Covers claims that your work caused a client financial loss.
Business Contents and Equipment Insurance - covers tools, equipment, and stock. Check whether your home insurance excludes business equipment if you work from home.
Check your sector - some industries (financial services, legal, healthcare) have mandatory insurance requirements set by regulators, not just best practice.
Your Online Presence: The Minimum You Need Before Trading
You do not need a polished website to start trading - but you need enough of a presence that clients can find you and trust you are a real business.
Online presence checklist
Register your domain name (even if your website is not live yet). Popular UK registrars include Namecheap, 123-reg (now part of GoDaddy), and IONOS - compare pricing, support, and renewal costs before committing.
Set up a professional email address using your domain - first@yourbusiness.co.uk. Avoid launching with a Gmail or Hotmail address for client-facing work.
Build a basic website with at minimum: what you do, who you serve, and how to contact you. Squarespace, Wix, and WordPress are common starting points.
Add a Privacy Policy to your website before it goes live. Under the UK data protection framework - the UK GDPR as amended by the Data (Use and Access) Act 2025 - if you collect any personal data, including email addresses through a contact form, you must provide clear privacy information to users.
If you use cookies on your website (most do via analytics tools), add a cookie consent banner.
Register for Google Business Profile if you have a physical location or serve clients locally.
UK GDPR applies from your first visitor
UK GDPR is not just for large businesses. The moment your website is live and collecting data - even just through a contact form - you have legal obligations around how that data is stored, used, and protected. A Privacy Policy and basic data handling process must be in place before you go live.
After Launch: The Ongoing Obligations to Build Into Your Calendar
The checklist does not end at launch. These are the recurring obligations that catch new founders out when they forget to schedule them.
Ongoing obligations - sole trader
File your Self Assessment tax return by 31 January each year (covering the previous 6 April to 5 April tax year). Online deadline: 31 January. Paper deadline: 31 October.
Pay your Income Tax and Class 4 National Insurance by 31 January. Payments on Account (advance payments toward next year's tax) are also due 31 January and 31 July.
Keep records of all income and expenses for at least 5 years after the 31 January submission deadline.
Review your VAT position annually if you are not yet registered - register within 30 days of exceeding the threshold.
Ongoing obligations - limited company
File your annual Corporation Tax return (CT600) with HMRC - due 12 months after your accounting period ends.
Pay Corporation Tax - due 9 months and 1 day after your accounting period ends.
File statutory accounts with Companies House - due 9 months after your financial year end.
File your Confirmation Statement with Companies House annually - confirms your company details are up to date.
Run payroll and submit Real Time Information (RTI) reports to HMRC each time you pay employees or yourself a salary.
Keep statutory company records (register of directors, shareholders, PSCs) updated.
Put the deadlines in your calendar now
The most common mistake new founders make is treating compliance deadlines as something to deal with later. Put every deadline in your calendar the day you start trading - HMRC fines for late filing start immediately and escalate quickly. An accountant can handle most of these for a predictable monthly fee that is well worth it in year one.
Get Practical Guidance You Can Use This Week
Get Practical Guidance You Can Use This Week
Ready to cut through the noise? Join the BGE newsletter for practical guidance, tool recommendations, and real-world insights for UK founders and business owners - delivered weekly to your inbox. No fluff, no spam, unsubscribe any time.
BGE newsletter
