How to register a business: a checklist for first-time founders

Starting your own business is a huge and exciting adventure. But many first-time founders worry about how to register a business, which is totally understandable because there’s a lot of confusing information out there.

But with the help of our handy checklist, you’ll discover that registering a business is a straightforward step towards bringing your business idea to life — not an admin burden to stress about. 

Think of this as your friendly guide to getting all the initial bits sorted. We break down exactly what to do, whether you’re setting up as a sole trader or looking to register a limited company.

Key takeaways:

• If you’re a sole trader, you don’t need to register with Companies House, but you do need to register with HMRC for tax 
• Setting up a limited company means registering with Companies House and HMRC, which is more formal but gives you legal protection and potential tax perks
• Costs are pretty low —  and registering early keeps your business legal and ready to grow
• No matter your choice, using a handy checklist and getting your admin sorted from the start will save you time and money, and help you focus on building your business

It’s normal to wonder if you even need to register a new business — because not every business needs to be registered with Companies House, the UK’s official registry for companies and limited liability partnerships (LLPs). 

If you’re a sole trader, you don’t need to register your business with Companies House. However, you must register with HMRC so they know that you’re in business for tax purposes. 

As a sole trader, if your annual VAT-taxable turnover is £90,000 or more,  you must also register for VAT. 

But if your annual turnover is less than £90,000, you can still voluntarily register your business for VAT. The benefit of this is that you can reclaim VAT on business expenses, like equipment and software. It also enhances your professional image, which can open up opportunities with bigger clients. If you’re unsure, check the VAT registration requirements to help you make a decision. 

If you want to set up a limited company, you must register your business with Companies House. 

Alongside sole trader and limited company, which are the most popular business structures for small businesses, the UK has a couple of other common company structures. 

Here’s a quick rundown of each business structure and which authorities you’d need to register with:

In this article, we’ll focus on the two most common choices for first-time founders: the sole trader and the limited company.

Unfortunately, there isn’t a single ‘register my business’ button for the whole of the UK. But the process is split into two primary paths:

1. The HMRC route: This is for unincorporated businesses, like sole traders. This route focuses on getting you into the tax systems
2. The Companies House route: This is for incorporated businesses, like limited companies. This is a more formal process that establishes your company as a legal entity

But if you’ve already decided that you’d like to set up a limited company — congrats! You can get started immediately. Our company registration service is designed for first-time founders. We handle the entire Companies House application for you, helping you save time and money, and most companies are officially registered and ready to trade the next working day.

If you need a little more help deciding, we break down the two structures in more detail below.

This structure is great if you’re a freelancer, consultant or starting a side-hustle and want minimal paperwork — because registering a sole trader business with Companies House isn’t a legal requirement. That’s one less thing to worry about — excellent news. 

However, you do need to register for Self-Assessment with HMRC. This is to let them know that you’re self-employed and will be submitting your own tax returns.

Registering with HMRC for tax purposes is how you pay your Income Tax and National Insurance contributions. 

Tip: You must register with HMRC by 5 October following the end of the tax year in which you started trading. For example, if you start earning money on 1 June 2024 (2024/2025 tax year), your tax year would end 5 April 2025 and you would need to register by 5 October 2025.

Here’s how to register for Self-Assessment for the first time:

1. Go to the HMRC website and search for ‘Register as Self-Employed’
2. Create a Government Gateway ID 
3. Fill out the online form by providing your personal details (name, DoB, National Insurance number)
4. You’ll receive a letter from HMRC with your unique 10-digit Unique Taxpayer Reference (UTR). Keep this number safe, as you’ll use it for all future tax forms and submissions
5. As part of the Self-Assessment registration, you’ll be enrolled to pay National Insurance Contributions (NICs), which count towards your State Pension entitlement

Once you have your UTR, you’re officially registered for tax purposes, and that’s the main admin requirement as a sole trader ticked off the list — hooray!

Registering a limited company is a more formal process because you’re creating a separate legal entity for your business. Don’t worry, it’s simple.

To register a new business in England as a limited company, you must register it with Companies House. Here’s what the registration process looks like, step by step:

Step 1: Check and confirm your company name 

You’ll first need to check that the name you want is available — use a company name availability checker to see if it’s free. As a general rule, your name can’t be too similar to an existing name on the Companies House register. 

Step 2: Get the key details

You’ll need to submit two main categories of information:

1 ) The company’s identity 

• Registered office address: This is where official mail from Companies House and HMRC is sent
• SIC code: This code describes what your business does
• Memorandum and Articles of Association: These are standard legal documents that set out the rules for running your company. Don’t worry, most first-time founders use ready-made versions during the application  

2) The people 

• Director’s details: You must have at least one director (this can be you). You’ll need to provide your name, DoB, nationality and three pieces of personal information (e.g. mother’s maiden name) for identity verification
• Shareholder’s details: You must have at least one shareholder (again, this can be you) 

Step 3: Complete the company registration 

You can complete the company registration process in a few ways:

1. On the Companies House website: While doing it yourself is the cheapest route, any mistakes might be costly down the line
2. By post: This is by far the slowest method and isn’t recommended if you want to start trading immediately
3. With a company formation agent: Using a dedicated company registration service like Coutingup simplifies the process. We provide guaranteed accuracy, support and access to other valuable business services, like your first business current account

Ta da, you’re in business! After registration, you’ll get a Certificate of Incorporation, which is basically your company’s birth certificate. 

Step 4: Register with HMRC for Corporation Tax

While Companies House automatically lets HMRC know about your new company, you must register for Corporation Tax separately. 

Tip: You must do this within 3 months of starting to trade or starting any business activity, like advertising.

For limited companies, the process to register a business name happens during the Companies House company registration process. It usually ends with ‘Ltd’ or ‘Limited’, and no one else can use it once you’ve registered successfully. 

If you’re a sole trader, you can trade under your own name without registering it. You can also add a service to your name, like ‘John Smith Gardening Services’, without registering it. But because your name isn’t registered, another sole trader could theoretically use it. 

For sole traders, the only way to protect your service name is to register it as a trademark with the Intellectual Property Office (IPO). This is optional but it’s recommended if your branding is important to your business. 

Tip: If you do choose to do this, make sure your service name’s website domain and social handles are available so your brand is fully covered.

The costs to register a new business can vary — it all depends on the structure you choose. 

• Sole trader: £0 
• Limited company: £50 (standard Companies House fee)
• Limited liability partnership (LLP): £12 (standard online filing) 
• Partnership (general): £0 

When you register a limited company through a company formation agent, prices can vary from £15 to over £100. 

But with Countingup’s company registration service, you pay just £12. This is a deposit towards the £50 Companies House registration fee, which we refund after you become an active customer. This £12 also includes your company incorporation documents and a free 3-month Countingup business current account trial. 

Some first-time founders choose to start their business as a sole trader and set up a limited company down the line if budgets are initially tight. 

We get it, tax isn’t the most thrilling subject. But understanding how to register a business in England for tax purposes now will hopefully save you time and money (and stress) down the line.  

The tax authority you need to register with, and how to do it, depends on your business structure. Here’s a simple breakdown, including the registration deadlines:

A note about business rates: these are a tax on non-domestic properties, like shops or offices. If you work from home, you typically won’t need to register for business rates. However, you may have to register and pay business rates if you use part of your home (like a studio) for your business or sell goods to the public directly from your home. 

You’ve now got all the knowledge you need to register a new business. Use this checklist, broken down by business type, to make sure you’ve completed each step. 

For sole traders:

• Choose a business name 
• Register for Self-Assessment with HMRC 
• Get your UTR from HMRC
• Set up a system to track your expenses and income
• VAT registration (when you reach £90,000 annual turnover) 

For limited companies:

• Choose a name 
• Appoint at least one director and one shareholder
• Decide on your registered office address
• Prepare your Memorandum and Articles of Association  
• Register your company and receive your Certificate of Incorporation 
• Register for Corporation tax with HMRC
• Open a company business account
• Register for PAYE (so you can pay yourself, if a director)

That’s it, you’ve made it to the end! We hope you’re feeling confident about taking the next step. Getting the admin sorted now is a huge win that will save you time and stress down the line. 

If you’re ready to set up a limited company, don’t forget to check out our company registration service. It’s quick, easy and includes all your official company incorporation documents and a free 3-month Countingup business current account trial to help manage your business payments, tax and accounting.

Now go make it happen. You’ve got this!

You can register a limited company directly on the Companies House website for £50 (online service) or by post. You’ll need to provide your unique company name, registered UK office address, details for all directors and shareholders, and your Memorandum and Articles of Association. 

To help customers find you online, create a free Business Profile on Google. Just go to Google Business Profile, sign in with your Google account and follow the steps to list your business. You can add your opening hours, contact details, website, and even photos to make your profile more valuable for customers.

If you don’t register your limited company with Companies House, it simply won’t legally exist, and you won’t be able to trade under that structure. For sole traders, not registering for Self-Assessment with HMRC means you could receive fines and have to pay interest on unpaid taxes. 

Registering an online business follows the same rules as any other business, including brick and mortar: it depends on your structure. If you’re a sole trader, you’ll register for Self-Assessment with HMRC. If it’s a limited company, you’ll register with Companies House. Make sure you also consider data protection (GDPR), VAT and rules for online selling. 

The simplest method is registering for Self-Assessment with HMRC. This is free and quick, with minimal annual administration. However, if your small business involves high liability or you plan to earn over £50,000 in profit, registering as a limited company offers better financial protection and tax planning.