How Do You Register a New Business in the UK?

A new UK business can usually be registered by following these steps:

1. Choose between operating as a sole trader, partnership, limited liability partnership or limited company.
2. Select a lawful and suitable business name.
3. Gather the owner, director, shareholder and business address details required for the chosen structure.
4. Register with HMRC or Companies House, depending on the structure.
5. Complete any required Companies House identity verification.
6. Register for taxes such as Corporation Tax, VAT and PAYE where applicable.
7. Check whether the business needs licences, insurance or sector-specific approval.

A sole trader does not incorporate a company. The individual registers for Self Assessment when registration is required.

By contrast, a private limited company becomes a separate legal entity after Companies House issues its certificate of incorporation.

UK Business Registration Summary

Registration point	Current rule or figure
Sole trader registration	Register for Self Assessment with HMRC when required
Sole trader income trigger	More than £1,000 of gross trading income in a tax year
Private limited company online fee	£100
Private limited company paper fee	£124
Typical online incorporation time	Usually within 24 hours
Minimum limited company directors	At least one
Minimum shareholders	At least one; the shareholder may also be the director
Identity verification	Required for new company directors and people with significant control
Corporation Tax notification	Check that HMRC is notified within three months of becoming active
Compulsory VAT registration threshold	More than £90,000 of VAT-taxable turnover
PAYE registration	Before the first payday
Digital confirmation statement fee	£50 within each 12-month payment period

Companies House updated its principal fees on 1 February 2026. The current fee schedule lists online incorporation at £100, paper incorporation at £124 and a digital confirmation statement at £50.

Which Business Structure Should Be Registered?

There is no single registration process for every business. The correct route depends on the legal structure selected by the founder.

Sole Trader

A sole trader runs the business as an individual. There is no legally separate company between the owner and the business, so the individual is generally personally responsible for the business’s debts and contractual obligations.

A person must normally register as a sole trader when gross trading income exceeds £1,000 during a tax year.

Registration may also be needed below that amount when the individual needs to prove self-employment, make voluntary Class 2 National Insurance contributions or register under the Construction Industry Scheme.

The relevant process is explained in the official HMRC sole trader registration guidance.

General Business Partnership

An ordinary partnership is formed when two or more people run a business together and share responsibility for it.

The partners select a nominated partner, who registers the partnership for Self Assessment and is responsible for the partnership tax return.

Each partner must also register separately and report their share of the partnership’s profits through an individual tax return.

Registration should normally be completed by 5 October in the partnership’s second tax year. Late registration can result in a penalty.

Private Limited Company

A private limited company is legally separate from its directors and shareholders. It must be registered with Companies House before it can operate as an incorporated company.

A company limited by shares needs:

• At least one director
• At least one shareholder
• Details of any people with significant control
• A registered office address
• A registered email address
• A Standard Industrial Classification code
• Articles of association
• A statement of capital and initial shareholdings

The same person can be the company’s sole director and sole shareholder. The complete sequence is available through the official GOV.UK limited-company setup service.

Limited Liability Partnership

A limited liability partnership, or LLP, combines elements of a partnership with limited liability. It is commonly used by professional firms and businesses whose owners want a flexible internal profit-sharing arrangement.

An LLP must be incorporated through Companies House. The current incorporation fee is £100 when filed electronically through suitable software or £124 for a paper application.

Professional legal and tax advice may be appropriate before selecting an LLP because its tax treatment and membership arrangements differ from those of an ordinary limited company.

How Is a Private Limited Company Registered?

For many founders, “registering a business” means incorporating a private company limited by shares. The process requires more information than simply entering a company name.

1.Check Whether a Limited Company Is Appropriate

A limited company can provide legal separation between the business and its owners, but it also creates continuing filing, accounting and governance responsibilities.

Directors have statutory duties and must ensure that the company keeps appropriate records, files annual accounts, submits confirmation statements and meets its tax obligations.

Incorporation should therefore not be treated as an administrative formality.

A founder comparing business models, finance options and growth strategies may also consult resources from Top Business Blog alongside official regulatory guidance.

2.Choose an Acceptable Company Name

The proposed name must not be the same as another registered company name. It must also comply with rules covering offensive wording, sensitive expressions and names suggesting an official government connection.

Most private limited company names end in “Limited” or “Ltd”. Companies registered in Wales can use the Welsh equivalents where the applicable requirements are met.

Availability on the Companies House register does not automatically mean that the name is safe to use.

A founder should also search the UK trade mark register and consider whether the name could infringe another organisation’s intellectual property rights.

3.Arrange a Registered Office and Email Address

Every limited company must provide an appropriate registered office address in the part of the UK where it is incorporated.

For example:

• A company incorporated in Scotland must have its registered office in Scotland.
• A company incorporated in Northern Ireland must have its registered office in Northern Ireland.
• A company registered in England and Wales must use an address in England or Wales.

The address must be physical and suitable for receiving official correspondence. A Royal Mail PO Box by itself cannot be used.

The registered office is displayed publicly.

A founder who does not want a home address published should arrange another suitable address before incorporation, such as an authorised accountant’s, solicitor’s or registered-office provider’s address.

Companies must also provide a registered email address. This email address is used for official communication but is not published on the public register.

4.Appoint the Directors and Shareholders

A private company must appoint at least one director. A company limited by shares must also have at least one shareholder, although one person can perform both roles.

The incorporation application requires information about the company’s initial shares, including:

• The number and class of shares
• The nominal value of the shares
• The names and addresses of the initial shareholders
• The rights attached to each share class

A simple one-owner business may issue one ordinary share with a nominal value of £1.

More complex ownership arrangements should be designed carefully, particularly where several founders, investors or different share classes are involved.

5.Identify People With Significant Control

A person with significant control, commonly called a PSC, is an individual or legal entity that owns or controls the company.

This can include someone who:

• Holds more than 25% of the shares
• Controls more than 25% of the voting rights
• Can appoint or remove a majority of the board
• Otherwise exercises significant influence or control

The PSC information must be provided during incorporation and kept up to date afterwards.

6.Complete Companies House Identity Verification

Identity verification is now a legal part of the UK company-registration process.

New directors and people with significant control must verify their identities and connect their verified identities to the appropriate company roles.

Verification can be completed directly through GOV.UK One Login or through an Authorised Corporate Service Provider.

Verification through GOV.UK One Login is free. After verification, Companies House issues a personal code that may be required during incorporation or when connecting the individual to a company role.

A founder should never email or post identity documents to Companies House unless an official process specifically instructs otherwise.

7.Select the Correct SIC Code

The Standard Industrial Classification code tells Companies House what the company does.

A company can use more than one SIC code when it carries out several activities, but each selected code should accurately reflect its genuine operations.

A vague or unrelated code may create problems during compliance reviews, banking checks, finance applications or due-diligence enquiries.

Companies House describes a SIC code as a five-digit code used to identify the company’s economic activity.

8.Prepare the Company’s Constitutional Documents

A company needs a memorandum of association and articles of association.

The memorandum records the initial shareholders’ or guarantors’ agreement to form the company. When a standard company is registered online, the memorandum is normally created automatically.

The articles of association are the rules governing how the company is managed.

A straightforward company can use the standard model articles, while companies with customised voting, investment or governance arrangements may need bespoke articles prepared with legal assistance.

9.Submit the Application and Pay the Fee

The online Companies House registration service costs £100. Straightforward applications are usually processed within 24 hours, although complex applications or applications requiring additional checks can take longer.

Paper registration using form IN01 costs £124 and generally takes longer.

Once accepted, Companies House issues a certificate of incorporation containing:

• The registered company name
• The company number
• The incorporation date
• Confirmation that the company legally exists

The certificate should be retained permanently with the company’s official records.

What Must Be Done After Registering the Business?

Registration is the beginning of the compliance process, not the end.

Confirm Corporation Tax Registration

The standard online incorporation service will usually set the company up for Corporation Tax at the same time, unless the company is dormant.

Nevertheless, directors should check the company’s HMRC business tax account.

If the company becomes active and has not been registered correctly, HMRC must generally be told within three months of the start of the company’s Corporation Tax accounting period.

Business activity can include selling goods or services, earning interest, advertising, employing staff or managing investments. A company incorporated in advance of trading may initially be dormant.

Check Whether VAT Registration Is Required

A business must normally register for VAT when:

• Its VAT-taxable turnover for the previous 12 months exceeds £90,000; or
• It expects taxable turnover to exceed £90,000 during the next 30 days.

The threshold applies to rolling 12-month taxable turnover, not simply turnover in the business’s accounting year.

A business below the threshold can apply for voluntary VAT registration.

However, registration creates obligations to charge VAT where required, maintain digital VAT records and submit returns, so the commercial consequences should be considered first.

Special rules can apply to overseas businesses supplying goods or services in the UK, acquisitions in Northern Ireland, business transfers and exempt or zero-rated supplies.

Register for PAYE When Employing People

A business employing staff must normally register as an employer with HMRC before its first payday. This can also apply where a limited company pays a salary to its only director.

HMRC does not normally allow registration more than two months before the business starts paying employees.

Payroll information must then be calculated, recorded and reported under Real Time Information rules on or before each payday.

Open Appropriate Financial Records

A limited company should keep its money and transactions clearly separate from the personal finances of its directors and shareholders.

Although the precise banking arrangement depends on the provider and business, a dedicated company bank account is normally the practical way to preserve that separation.

The business should establish a record-keeping system for:

• Sales and other income
• Purchases and expenses
• Business assets
• Amounts owed to and by the business
• Payroll and pensions
• VAT records, where applicable
• Share transactions and dividends

Check Licences, Insurance and Local Requirements

Companies House or HMRC registration does not automatically authorise every type of business activity.

Additional approval may be required for sectors such as:

• Food preparation and sales
• Childcare
• Financial services
• Alcohol sales
• Transport
• Waste management
• Construction
• Security services
• Healthcare
• Property letting or agency work

The business may also need employers’ liability insurance, professional indemnity insurance, public liability cover, data-protection registration or planning consent, depending on its activities.

How Long Does UK Business Registration Take?

The timescale depends on the structure and whether the application requires additional checks.

A straightforward online limited-company application is usually processed within 24 hours.

Registration can take longer when the company name requires approval, bespoke documents are submitted, identity details cannot be matched or the application contains inconsistent information.

A sole trader can submit the HMRC registration online, but the arrival of a Unique Taxpayer Reference and activation of relevant online services may take additional time.

Founders should avoid leaving registration until immediately before a banking, funding or contractual deadline.

How Much Does It Cost to Register a Business?

Registering as a sole trader with HMRC does not have a government registration fee.

A standard private limited company currently costs:

• £100 for online incorporation
• £124 for paper incorporation

An LLP costs £100 through electronic software filing or £124 by paper. Commercial formation agents, accountants and legal advisers may charge separate service fees in addition to the official Companies House charge.

Founders should distinguish between the compulsory government fee and optional extras such as registered-office services, bookkeeping software, trade mark registration, legal documents or professional advice.

Common Misconceptions About Registering a UK Business

Every Business Must Register With Companies House

This is incorrect. Sole traders and ordinary partnerships generally register with HMRC rather than incorporating at Companies House.

Companies House registration applies to incorporated entities such as limited companies and LLPs.

Incorporation Means Every Tax Obligation Is Complete

A certificate of incorporation confirms that the company legally exists. It does not remove the need to check Corporation Tax, PAYE, VAT and other reporting requirements.

A Companies House Name Automatically Creates Trade Mark Protection

Company-name registration and trade mark registration are separate processes.

Companies House may accept a name that still creates an intellectual-property dispute. A trade mark search should therefore be considered before substantial money is invested in branding.

A Director’s Home Address Always Remains Private

A director’s usual residential address is generally protected, but a registered office or service address displayed on the public register is not private.

Using a home address as the registered office can make that address publicly searchable.

A Business Only Checks the VAT Threshold at Year End

The VAT registration threshold is based on taxable turnover over a rolling 12-month period. It should be monitored regularly rather than checked only when annual accounts are prepared.

Final Takeaway

Registering a new business in the UK begins with the legal structure.

A sole trader usually registers with HMRC through Self Assessment, while an ordinary partnership appoints a nominated partner to register the partnership.

A limited company or LLP must be incorporated through Companies House.

For a limited company, the founder must choose an acceptable name, arrange an appropriate registered office, identify directors, shareholders and PSCs, verify the relevant identities and select accurate SIC codes.

Online incorporation currently costs £100 and is usually completed within 24 hours.

After registration, the business must still check its Corporation Tax, VAT, PAYE, accounting, insurance and licensing responsibilities.

These requirements should be reviewed regularly because turnover, staffing, business activities and government rules can change.

Frequently Asked Questions

Can One Person Register a Limited Company?

Yes. One person can be the sole director and sole shareholder of a private company limited by shares. The individual must still comply with the identity-verification and director-responsibility rules.

Can a Home Address Be Used as the Registered Office?

A home address can be used when it satisfies the registered-office requirements. However, it will be published on the Companies House register.

Someone who wants to protect a residential address should arrange a suitable alternative before incorporating.

Does a Sole Trader Need to Register Immediately?

A sole trader does not necessarily need to register on the first day of trading. Registration is generally required when gross trading income exceeds £1,000 in a tax year or another registration condition applies.

Where a tax return is required, HMRC must normally be notified by 5 October following the relevant tax year.

Does a Limited Company Have to File Accounts Every Year?

Yes. All companies must file annual accounts with Companies House, including dormant companies. The first accounts are normally due 21 months after incorporation.

Later annual accounts for a private company are generally due nine months after its financial year ends.

Note: This article has been reviewed against official Companies House, HM Revenue & Customs and GOV.UK guidance