How to Register a Business in the UK in 2026?: Complete Step-by-Step Guide

Knowing how to register a business in the UK starts with one important distinction: there is no single registration process that applies to every business.

A sole trader normally registers with HM Revenue & Customs (HMRC) for Self Assessment when required. A private limited company must be incorporated with Companies House before it can trade as that company.

An ordinary partnership registers with HMRC, while limited liability partnerships and certain other structures have additional Companies House requirements.

For somebody starting from scratch, the main process is:

1. Choose the appropriate legal structure.
2. Choose and check the business name.
3. Gather the information required for registration.
4. Register with HMRC or Companies House.
5. Complete Companies House identity verification where required.
6. Deal with Corporation Tax, Self Assessment, VAT and PAYE.
7. Check whether licences, insurance or regulatory registrations are required.
8. Set up accounting and record-keeping systems.
9. Meet ongoing tax and Companies House filing deadlines.

Registration is therefore only one part of legally establishing a business.

Anyone still at the wider planning stage may also find it useful to understand how to start a small business in the UK before completing formal registrations.

How Do You Register a Business in the UK?

The registration route depends primarily on the legal structure.

Most small businesses begin as either a sole trader or a private company limited by shares.

The government’s official business setup service also explains how registration differs according to the structure chosen.

Step 1: Decide Which Business Structure to Register

Choosing a structure should happen before filling in registration forms because it determines the business’s legal identity, tax treatment, administrative obligations and, in many cases, liability.

Sole Trader

A sole trader owns and runs the business personally.

The business and its owner are not generally separate legal persons. This means the owner can normally be personally responsible for business debts and contractual obligations.

Advantages can include:

• relatively simple setup
• fewer Companies House obligations
• straightforward administration for smaller businesses
• no incorporation fee
• greater privacy because accounts are not normally published at Companies House

However, the absence of a separate legal entity means personal liability can be considerably greater than under a limited-company structure.

Limited Company

A limited company is legally separate from its shareholders and directors.

For many small businesses, the most common form is a private company limited by shares.

A limited company can provide:

• limited liability for shareholders in normal circumstances
• a separate legal identity
• clearer ownership through shares
• greater flexibility when bringing in investors
• potential advantages when retaining profits within the business

The trade-off is greater administration. Directors have legal responsibilities and companies must normally file accounts, confirmation statements and tax information.

Anyone progressing from a written business plan into formal operations can also review what an entrepreneur should do after creating a business plan.

Partnership

An ordinary business partnership involves two or more people running a business together.

A nominated partner must register the partnership for Self Assessment with HMRC, while each partner also has individual tax-return responsibilities.

HMRC states that a partnership should generally be registered by 5 October in the business’s second tax year. The official partnership registration rules explain the process in more detail.

Limited Liability Partnership

A limited liability partnership, or LLP, combines characteristics of a partnership and a corporate structure.

An LLP must be registered with Companies House and has more formal reporting obligations than an ordinary partnership.

It is commonly used by certain professional practices and businesses where several owners want a partnership structure combined with limited liability.

Step 2: Choose a Business Name

The rules depend on the structure.

Naming a Sole Trader Business

A sole trader can trade under:

• their own personal name or
• another trading name

However, the name cannot falsely suggest that the business is incorporated. For example, a sole trader cannot simply add terms such as:

• Limited
• Ltd
• LLP
• plc

A business name should also not be offensive or infringe an existing trade mark.

HMRC’s sole trader business-name rules set out the restrictions.

Naming a Limited Company

A limited-company name generally cannot be identical to another registered company name.

Companies House may also object where names are considered the same as, or too similar to, existing registered names.

Most private companies limited by shares will use Limited or Ltd at the end of the registered company name.

Certain sensitive words and expressions also require permission.

Before registration, a founder should ideally:

1. Search Companies House.
2. Search the UK trade mark database.
3. Check relevant domain names.
4. Check social-media usernames.
5. Search the proposed name online.
6. Consider whether future expansion could make the name too restrictive.

Companies House accepting a company name does not automatically mean that using it cannot create a trade mark dispute.

The official Companies House company-name rules provide the current requirements.

Step 3: Register as a Sole Trader

Registering a sole trader business is different from incorporating a company.

There is no Companies House incorporation process for an ordinary sole trader.

Instead, registration is generally dealt with through HMRC Self Assessment.

When Does a Sole Trader Have to Register?

A person must normally register as a sole trader for Self Assessment where their gross trading income is more than £1,000 during a tax year, although other circumstances can also create a requirement to register.

A person may also register where they:

• need to prove they are self-employed
• want to make voluntary Class 2 National Insurance contributions where appropriate
• need to register under the Construction Industry Scheme
• fall into another HMRC registration category

The £1,000 figure relates to gross trading income, not profit after expenses.

HMRC’s current sole trader registration service confirms these requirements.

What Is the Sole Trader Registration Deadline?

Where somebody needs to complete a Self Assessment return and has not previously registered, HMRC generally requires notification by 5 October following the end of the relevant tax year.

For example, for income arising during the tax year from 6 April 2025 to 5 April 2026, HMRC states that the relevant registration date is 5 October 2026.

Registering late can potentially result in penalties, particularly where the delay causes tax to be paid late.

Information Needed to Register as a Sole Trader

A person will generally need information including:

• full legal name
• date of birth
• address
• National Insurance number
• contact information
• date self-employment began
• nature of the business

After registration, HMRC provides or confirms the person’s Unique Taxpayer Reference, commonly called a UTR.

Step 4: Register a Limited Company

A limited company must be incorporated with Companies House.

The official Companies House company registration service can normally be used for a straightforward private company.

How Much Does It Cost to Register a Limited Company in 2026?

As of September 2026:

The online incorporation fee increased to £100 from 1 February 2026.

A normal online company registration is generally processed within approximately 24 hours, although complex applications can take longer. Postal applications generally take longer.

What Information Is Needed to Register a Limited Company?

Before starting the application, the founders should normally have the following information ready.

Company Name

The proposed company name must comply with Companies House naming rules.

Registered Office Address

Every company must provide a registered office address.

The address must be:

• a physical UK address
• in the same UK jurisdiction where the company is incorporated
• an appropriate address where documents delivered to the company can be expected to come to someone’s attention

A company registered in Scotland, for example, cannot use a registered office in England.

A Royal Mail PO Box by itself cannot be used as the registered office.

The registered office appears on the public Companies House register, so founders who do not want their home address published should arrange an appropriate alternative before incorporating.

Companies House explains the requirements in its registered office and email address rules.

Registered Email Address

Companies must also provide an appropriate email address.

Unlike the registered office, the company’s registered email address is not published on the public Companies House register.

Companies House uses it for official communication, and businesses are expected to monitor messages sent to it.

Directors

A private company needs at least one director.

A director must normally be at least 16 years old.

Directors do not have to live in the UK, although the company itself needs an appropriate UK registered office.

Directors carry legal responsibility for running the company properly and ensuring required filings are made.

Shareholders

A company limited by shares needs at least one shareholder.

For a small owner-managed company, the sole director and sole shareholder can be the same person.

The incorporation application records information about the initial share structure.

People With Significant Control

Companies must identify their people with significant control, commonly shortened to PSCs.

A PSC may, for example, be somebody who owns more than 25% of the company’s shares or voting rights, although the complete PSC rules cover additional forms of control.

PSC information is supplied as part of the incorporation process.

SIC Code

The company must select a Standard Industrial Classification, or SIC, code describing its business activities.

The SIC code becomes part of the company’s Companies House record.

A company carrying out several activities may use more than one appropriate SIC code.

Memorandum and Articles of Association

Companies also require constitutional documents.

These include:

• a memorandum of association, confirming that the initial members agree to form the company
• articles of association, which contain the rules governing how the company operates

Where the normal Companies House online registration process is used, the memorandum is generated automatically. Businesses can normally use standard model articles or, where appropriate, adopt bespoke articles.

Step 5: Complete Companies House Identity Verification

This is one of the most important changes affecting anybody researching how to register a business using an older article.

Companies House identity verification became a legal requirement from 18 November 2025.

Directors and people with significant control now have verification requirements.

What Is a Companies House Personal Code?

Once an individual successfully verifies their identity, Companies House provides an 11-character personal code.

The code belongs to the person rather than the company.

A director involved with several companies does not normally need a different identity code for each company. The same personal code is used to connect the person’s verified identity with their different Companies House roles.

Do New Directors Need to Verify Their Identity?

Yes. When registering a new company, the incorporation process requires the Companies House personal code for each director where the identity-verification requirements apply.

People with significant control also have requirements to verify and provide their codes according to their relevant deadlines.

Identity can normally be verified through the free Companies House identity verification service using GOV.UK One Login, or through an authorised corporate service provider where appropriate.

Step 6: What Happens After a Limited Company Is Registered?

Once Companies House accepts the application, the company receives a certificate of incorporation.

This confirms that the company legally exists.

The certificate includes important information such as:

• the registered company name
• company number
• incorporation date

The company number should not be confused with tax references.

Company Number vs UTR vs VAT Number

New business owners frequently confuse the different reference numbers.

These numbers serve different purposes and should not be used interchangeably.

Step 7: Deal With Corporation Tax

A company registered using the standard Companies House online service will usually be set up for Corporation Tax at the same time unless it is dormant.

HMRC normally sends the company its 10-digit UTR.

Where Corporation Tax services have not already been activated, the company should add them to its business tax account once it starts doing business.

HMRC treats activities such as buying, selling, advertising, renting property and employing somebody as potential indicators that the company has started doing business. HMRC’s Corporation Tax setup information explains the current process.

A newly incorporated company should not assume that receiving a Companies House certificate completes every tax obligation automatically.

Step 8: Register for VAT if Required

Registering the business itself does not automatically mean that it needs to register for VAT.

As of September 2026, compulsory VAT registration is normally required where:

• taxable turnover for the previous rolling 12 months goes above £90,000
• the business expects taxable turnover to exceed £90,000 in the next 30 days

A business can also choose voluntary VAT registration below the threshold.

The threshold applies to taxable turnover, not business profit.

HMRC’s VAT registration rules explain what counts towards the threshold and when registration becomes compulsory.

Businesses approaching the threshold should monitor turnover monthly rather than waiting for their annual accounts.

Step 9: Register for PAYE When Employing People

A business normally needs to register with HMRC as an employer when it begins employing staff.

That can also apply where a limited company employs and pays its own director.

Registration needs to take place before the first payday, but HMRC does not normally allow businesses to register more than two months before they begin paying staff.

The official PAYE employer registration service provides the current requirements.

Payroll responsibilities can include:

• deducting Income Tax
• calculating National Insurance
• reporting pay to HMRC
• issuing payslips
• dealing with pension auto-enrolment where applicable
• keeping payroll records

Step 10: Check Whether the Business Needs a Licence

Companies House or HMRC registration does not automatically provide permission to conduct every type of business activity.

Additional licences, registrations, certifications or permissions can apply to activities involving areas such as:

• selling alcohol
• food businesses
• childcare
• waste
• street trading
• gambling
• transport
• financial services
• animals
• beauty treatments
• construction
• property
• music and entertainment

The government provides a searchable business licence finder covering hundreds of licences and regulatory requirements.

Requirements can also vary between England, Scotland, Wales and Northern Ireland and between local authorities.

A business should check licensing requirements before beginning regulated activity, not after taking customers.

Step 11: Arrange Appropriate Business Insurance

Not every type of business insurance is compulsory, but certain circumstances create legal requirements.

A significant example is Employers’ Liability insurance.

A business that becomes an employer generally needs Employers’ Liability cover of at least £5 million, subject to specific exemptions.

Depending on the activity, other insurance may include:

• public liability
• professional indemnity
• product liability
• commercial property
• cyber insurance
• business interruption
• commercial vehicle insurance

Professional bodies, customers, landlords and commercial contracts can also require particular levels of cover even where legislation does not.

Step 12: Check Data Protection Responsibilities

A business handling customer, employee or other personal information should consider UK data-protection requirements from the start.

Some businesses may need to pay a data-protection fee to the Information Commissioner’s Office, while exemptions apply to certain processing activities.

Being exempt from paying the fee does not remove the wider responsibility to comply with applicable data-protection law.

This can affect businesses collecting information through:

• websites
• enquiry forms
• email marketing
• customer databases
• payment systems
• employee records
• CCTV
• online shops

Step 13: Open Suitable Business Banking Arrangements

Registration and banking are separate processes.

A limited company is a separate legal entity, so company finances should be clearly separated from directors’ personal money.

A dedicated business bank account can help with:

• bookkeeping
• identifying business expenses
• tax calculations
• VAT records
• payroll
• cash-flow forecasting
• accountant handover
• demonstrating a clear separation between company and personal transactions

For sole traders, a separate business account is not automatically a statutory requirement in every case, although individual banks may prohibit business activity through certain personal accounts.

Keeping transactions separate generally makes administration much easier.

Step 14: Set Up Accounting Records Immediately

Record keeping should begin with the first business transaction rather than when the first tax return becomes due.

Records may include:

• sales invoices
• purchase invoices
• receipts
• bank transactions
• payroll
• business expenses
• mileage
• assets
• stock
• VAT information
• loans
• investment into the business

Limited companies also have statutory accounting responsibilities.

Making Tax Digital Matters for Sole Traders in 2026

Another major change for businesses operating in 2026 is Making Tax Digital for Income Tax.

From 6 April 2026, qualifying sole traders and landlords whose relevant annual qualifying income was more than £50,000 under the applicable test must use Making Tax Digital for Income Tax.

The current phased timetable is:

Qualifying income broadly refers to gross income from self-employment and property before expenses under the MTD rules.

Affected businesses need compatible software to maintain digital records and submit required information to HMRC. HMRC’s Making Tax Digital guidance explains the current requirements.

How Much Does It Cost to Register a Business?

The cost depends heavily on the structure.

Formation agents may charge additional fees on top of Companies House charges.

What Does a Limited Company Have to File After Registration?

Incorporating a company creates continuing obligations.

Confirmation Statement

Every company, including dormant companies, must normally file a confirmation statement at least once every 12 months.

The company reviews details such as:

• registered information
• SIC codes
• capital information
• shareholder information
• PSC-related information

A company can normally file up to 14 days after the end of its review period.

As of September 2026, a digital confirmation statement costs £50 for the first confirmation statement within the applicable 12-month payment period.

Annual Accounts

A private limited company generally needs to submit annual accounts to Companies House.

For most established private companies, the normal filing deadline is nine months after the end of the company’s financial year.

For a new private company whose first accounts cover more than 12 months, the first Companies House accounts are normally due within 21 months of incorporation, subject to the detailed accounting-reference-date rules.

Corporation Tax

A company generally needs to:

• calculate Corporation Tax
• pay Corporation Tax by the applicable deadline
• submit a Company Tax Return

For many private companies, Corporation Tax is due nine months and one day after the relevant accounting period ends, while the Company Tax Return deadline is normally 12 months after the accounting period ends.

Common Mistakes When Registering a Business

Choosing a Limited Company Without Understanding Director Responsibilities

A limited company can appear more professional, but incorporation also brings ongoing duties.

Directors remain legally responsible even when an accountant handles filings on their behalf.

Using a Home Address Without Understanding That It Becomes Public

A limited company’s registered office is publicly searchable.

Anybody concerned about privacy should decide on an appropriate alternative before incorporation rather than discovering the issue after the address is already published.

Picking the Wrong SIC Code

The SIC code should reasonably describe what the business actually does.

A company can use multiple codes where it has genuinely different business activities.

Forgetting Companies House Identity Verification

Older registration instructions may not mention this requirement because mandatory verification only began in November 2025.

In 2026, identity verification is a core part of forming and controlling a company.

Confusing Turnover With Profit

Several registration thresholds relate to turnover or gross income, not profit.

Examples include:

• the sole-trader £1,000 gross trading-income threshold
• the £90,000 VAT taxable-turnover threshold
• Making Tax Digital qualifying-income tests

Deducting expenses before checking the wrong threshold can therefore produce an incorrect answer.

Believing Companies House Registration Covers Every Legal Requirement

It does not.

A business may still need:

• VAT registration
• PAYE registration
• local-authority registration
• sector-specific licences
• insurance
• ICO compliance
• pension arrangements
• health-and-safety procedures
• professional authorisation

Business Registration Checklist

Before trading, a founder can work through the following checklist.

Structure

• Choose sole trader, partnership, LLP or limited company.
• Understand liability.
• Consider taxation.
• Consider ownership and investment requirements.

Name

• Check Companies House.
• Check trade marks.
• Check domain availability.
• Check restricted words.
• Check trading-name requirements.

Limited Company Information

• Choose directors.
• Identify shareholders.
• Identify PSCs.
• Select SIC codes.
• Arrange registered office.
• Provide registered email.
• Decide share structure.
• Prepare articles where necessary.

Identity

• Complete Companies House identity verification.
• Obtain personal codes for directors.
• Complete applicable PSC verification.

Tax

• Register for Self Assessment where required.
• Deal with Corporation Tax.
• Monitor the £90,000 VAT threshold.
• Register PAYE when employing people.
• Check Making Tax Digital requirements.

Regulation

• Check business licences.
• Check local-authority requirements.
• Arrange appropriate insurance.
• Review data-protection obligations.

Administration

• Open suitable banking arrangements.
• Choose accounting software.
• Keep invoices and receipts.
• Monitor cash flow.
• Record tax deadlines.
• Record Companies House filing deadlines.

Final Summary

For anybody asking how to register a business in the UK, the correct starting point is not Companies House. It is deciding what legal structure the business will use.

A sole trader normally registers with HMRC for Self Assessment once the relevant requirements are met.

A limited company must be incorporated at Companies House before it can trade as that company. In 2026, standard online incorporation costs £100, and current applications also need to take account of mandatory Companies House identity-verification requirements for directors and PSCs.

A partnership generally registers through HMRC, while LLPs have Companies House obligations.

Registration should then be followed by the appropriate tax, accounting, VAT, PAYE, licensing, insurance and record-keeping arrangements.

The biggest mistake is treating registration as the end of the startup process. It is the legal starting point. Keeping the business compliant afterwards is an ongoing responsibility.

Frequently Asked Questions

Do I Need to Register a Business Before I Start Trading?

It depends on the structure.

A limited company must be incorporated before trading as that company. A sole trader can normally begin trading before completing Self Assessment registration, but must register when the HMRC requirements apply and meet the relevant deadline.

Some regulated activities also require a licence or registration before trading begins.

How Do I Register a Small Business in the UK?

For many small businesses, the first step is deciding between sole trader and limited-company status.

A sole trader normally registers with HMRC for Self Assessment when required. A limited company registers with Companies House and must provide information about directors, shareholders, PSCs, its registered office, SIC code and share structure.

Is It Free to Register a Business?

Registering as a sole trader for Self Assessment does not involve a Companies House incorporation fee.

Registering a private limited company online with Companies House currently costs £100.

Other costs can arise for agents, registered-office services, licences, insurance, accountants and professional advice.

How Long Does It Take to Register a Limited Company?

Companies House states that straightforward online applications are normally registered within approximately 24 hours.

Paper registration generally takes longer.

Complex applications, restricted company names or incorrect information can cause delays.

Can One Person Register a Limited Company?

Yes. A private company limited by shares can have one person acting as its only director and shareholder, provided the legal requirements are met.

The company still remains legally separate from that individual.

Does a Company Director Have to Live in the UK?

No. Companies House states that a director does not have to live in the UK.

However, the company must have an appropriate registered office in the UK jurisdiction where it is incorporated.

Can a Home Address Be Used to Register a Company?

Yes, provided it meets Companies House requirements.

However, the registered office is publicly available. A founder who does not want a residential address displayed should arrange an appropriate alternative address before incorporating.

Does a Sole Trader Get a Company Number?

No. A company registration number is issued to an incorporated company by Companies House.

A sole trader may instead have tax references such as a UTR from HMRC.

Does Every Business Need a UTR?

A UTR is an HMRC tax reference rather than a Companies House business-registration number.

Sole traders who register for Self Assessment receive a personal UTR, while limited companies are issued a company UTR for Corporation Tax purposes.

Does Every Business Need to Register for VAT?

No. Compulsory VAT registration generally arises once taxable turnover exceeds £90,000 over a rolling 12-month period, or where the business expects to exceed £90,000 within the next 30 days under the future-turnover test.

Businesses below the threshold may sometimes register voluntarily.

Can Someone Register a Business While Employed?

Being employed does not automatically prevent somebody from operating a separate business.

However, the individual should check:

• employment-contract restrictions
• conflicts of interest
• confidentiality provisions
• intellectual-property clauses
• working-time considerations
• immigration conditions where applicable

Income from employment and business activity can also interact for personal tax purposes.

Is a Business Automatically Registered for Tax When It Is Registered With Companies House?

Not in every respect. A company formed through the normal online service is usually set up for Corporation Tax at the same time, but VAT and PAYE are separate registrations where required.

The company may also need to activate or add Corporation Tax services to its business tax account.

What Is the Easiest Business Structure to Register?

A sole trader structure generally has fewer registration and Companies House requirements than a limited company.

That does not necessarily mean it is the correct structure for every business. Liability, tax, investment, contracts, ownership and future growth should all be considered.