Registering a company

If you’re starting a new business, one of the first decisions is choosing the right legal structure and registering with the relevant authorities.

Whether you’re setting up as a sole trader, partnership or limited company, understanding your responsibilities early will help you stay compliant and build strong foundations for growth.

Choosing the right structure

The most common business structures in the UK are:

Sole trader
Simple to set up and run. You keep all profits but are personally responsible for any debts.

Partnership
Two or more people share responsibility for the business, including profits, losses and liabilities.

Limited company
A separate legal entity from its owners. This can offer protection for personal assets and may provide tax and credibility benefits, but comes with additional reporting requirements.

Choosing the right structure depends on your plans for growth, finances and how you want to run the business.

Registering your business

Most businesses must register with HM Revenue & Customs (HMRC).
Limited companies must also register with Companies House.

You may need to:

Register as self-employed
Register a limited company
Set up PAYE if employing staff
Register for VAT (if applicable)
Open a business bank account
Understand tax and reporting responsibilities

Taking time to get this right at the start can prevent issues later.

Useful resources

Register as self-employed (HMRC)
https://www.gov.uk/register-for-self-assessment

Set up a limited company
https://www.gov.uk/limited-company-formation

Companies House
https://www.gov.uk/government/organisations/companies-house

Business structure guidance
https://www.gov.uk/business-legal-structures

Register for VAT
https://www.gov.uk/register-for-vat