Starting a Business Checklist: Everything You Need in 2026

Starting a UK business involves more steps than just having a good idea. This checklist covers everything from choosing your structure to getting your first customers, in the right order.

1. Choose Your Business Structure

Most UK businesses operate as either a sole trader or a limited company. A limited company offers liability protection and can be more tax-efficient once you earn over £30,000–£40,000 in profit. Sole trader status is simpler for getting started but exposes your personal assets to business debts. If in doubt, start as a limited company — it's easy to set up and gives you more credibility with clients.

2. Register Your Company

If you've chosen a limited company, register at Companies House. You can do this yourself for £50 or use a formation agent like 1st Formations for same-day registration with a professional registered office address included. Check your company name is available by searching 2.6 million UK companies on UK Business Finder.

3. Register with HMRC

Register for Corporation Tax within three months of starting to trade. If you expect turnover above £90,000, register for VAT. You may also need to register as an employer if you're taking on staff or paying yourself via PAYE.

4. Open a Business Bank Account

A limited company must have a separate business bank account. Even sole traders should keep business and personal finances separate. Most major banks and fintech providers offer free business accounts for the first 12–18 months. Choose one that integrates with your accounting software.

5. Set Up Accounting

Get your accounting software set up from day one — not at year end when it's too late to claim expenses you've forgotten about. Xero is a popular choice for UK small businesses, with automatic bank feeds, MTD-compliant VAT returns, and easy accountant access. Read our full comparison of UK accounting software.

6. Get Business Insurance

At minimum, you need employers' liability insurance if you hire anyone. Most businesses should also have public liability and professional indemnity cover. Simply Business lets you compare tailored quotes in minutes. Read our complete guide to business insurance.

7. Set Up Your Online Presence

Register a domain name, set up a basic website, and create a Google Business Profile. Even a simple one-page website establishes credibility. Make sure your company name, address, and contact details are consistent everywhere.

8. Understand Your Ongoing Obligations

As a UK limited company, you must file annual accounts with Companies House (deadline: 9 months after your accounting year end), file a confirmation statement at least once a year, file a Corporation Tax return with HMRC (deadline: 12 months after your accounting period), keep your PSC register up to date, and maintain a registered office address.

9. Research Your Market

Before launching, research your competition. On UK Business Finder you can browse any industry in any region to see exactly how many active companies operate in your space, how old they are, their compliance status, and who controls them. This gives you a realistic picture of the competitive landscape.

Quick Checklist

• Choose business structure (limited company vs sole trader)
• Register company at Companies House
• Register for Corporation Tax / Self Assessment with HMRC
• Register for VAT if applicable
• Open business bank account
• Set up accounting software
• Get business insurance
• Register a domain and build a website
• Create a Google Business Profile
• Research competitors in your industry