Setting up my business

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How to start your own business

We'll help you get up and running

Take these steps to get your business registered and up and running.

Start here

What type of business is your organisation?

Sole trader

Partnership

Limited company

Choose a business name

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.

Choosing your business name

Sole trader names must not:

include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’
be offensive

You need to get permission if your name contains a ‘sensitive’ word or expression, or suggests a connection with government or local authorities. For example, to use ‘Accredited’ in your business name, you need permission from the Department for Business and Trade (DBT).

If you choose a name or logo that’s registered as a trade mark or is already being used, the owner could take legal action against you.

If you register a trade mark, it’s easier to stop other businesses using your name or logo.

Check which words you need permission to use, and who from.

Create Government Gateway account

You get a login for HM Revenue and Customs (HMRC) online services when you register for tax online.

Why register with HMRC?

You register when you tell HMRC that you:

want a personal tax account
are an individual who needs to send a Self Assessment tax return (for example to report rental, investment or self-employment income)
have set up a limited company or other organisation that needs to pay Corporation Tax

You also register when you tell HMRC that your business needs to:

operate PAYE because you’ve started to employ people
charge VAT because your taxable turnover is over £85,000

Register for self-assessment

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Why register for self-assessment?

Tax is usually deducted automatically from wages and pensions. People and businesses with other income (including COVID-19 grants and support payments) must report it in a tax return.

If you need to send a Self Assessment tax return, fill it in after the end of the tax year (5 April) it applies to.

You must send a return if HMRC asks you to.

Self Assessment tax returns

Check your responsibilities

You’ll need to:

keep business records and records of expenses
send a Self Assessment tax return every year
pay Income Tax on your profits and Class 2 and Class 4 National Insurance - use HMRC’s calculator to help you budget for this

Moving to Northern Ireland to set up a business?

Register for VAT (£85k+ turnover)

You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT.

Do you work in the construction industry?

How to register for VAT

Would you like to know more?

Head over to gov.uk for a step-by-step guide to setting up as a sole trader.

Discover what you need to do when you start working for yourself, either as your only job or at the same time as working for an employer.

For setting up a business in Northern Ireland, check out these links:

nidirect

nibusinessinfo.co.uk

Find out more

Choose a partnership name

You can trade under your own name, or you can choose another name for your business. You do not need to register your name.

You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.

Choosing your business name

Partnership names must not:

be offensive

If you choose a name or logo that’s registered as a trade mark or is already being used, the owner could take legal action against you.

If you register a trade mark, it’s easier to stop other businesses using your name or logo.

Check which words you need permission to use, and who from.

Nominate a partner

When you set up a business partnership you need to:

choose a ‘nominated partner’
register with HM Revenue and Customs (HMRC)

The ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

Is your business a limited partnerships or LLP?

Register for self-assessment

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Why register for self-assessment?

Tax is usually deducted automatically from wages and pensions. People and businesses with other income (including COVID-19 grants and support payments) must report it in a tax return.

If you need to send a Self Assessment tax return, fill it in after the end of the tax year (5 April) it applies to.

You must send a return if HMRC asks you to.

Self Assessment tax returns

Register for VAT (£85k+ turnover)

Do you work in the construction industry?

How to register for VAT

Decide if you want to appoint an agent for HMRC

You can authorise someone else to deal with HM Revenue and Customs (HMRC) for you, for example an accountant, friend or relative.

If you have to fill in a Self Assessment tax return, HMRC will send all correspondence to the person you’ve authorised - except tax bills or refunds. Otherwise, HMRC will continue to write to you.

Need help?

Appoint someone to deal with HMRC on your behalf

Would you like to know more?

Head over to gov.uk for a guide to setting up a business partnership.

Partners share the business’s profits, and each partner pays tax on their share.

For setting up a business in Northern Ireland, check out these links:

nidirect

nibusinessinfo.co.uk

Find out more

Choose a Limited Liability Company (LLC) name

You can trade under your own name, or you can choose another name for your business. You don't need to register your name.

You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.

Choosing your business name

LLC names must not:

be offensive

You need to get permission if your name contains a ‘sensitive’ word or expression, or suggests a connection with government or local authorities. For example, to use ‘accredited’ in your business name, you need permission from the Department for Business and Trade (DBT).

If you choose a name or logo that’s registered as a trade mark or is already being used, the owner could take legal action against you.

If you register a trade mark, it’s easier to stop other businesses using your name or logo.

Check which words you need permission to use, and who from.

Nominate directors and secretary

Your company must have at least one director. Directors are legally responsible for running the company and making sure company accounts and reports are properly prepared.

A director must be 16 or over and not be disqualified from being a director.

Directors do not have to live in the UK but companies must have a UK registered office address.

Directors’ names and personal information are publicly available from Companies House.

Directors must provide a service address (or ‘correspondence’ address), which will also be publicly available. If they use their home address, they can ask Companies House to remove it from the register.

Company secretaries

You do not need a company secretary for a private limited company. Some companies use them to take on some of the director’s responsibilities.

The company secretary can be a director but cannot be:

the company’s auditor
an ‘undischarged bankrupt’ - unless they have permission from the court

The restrictions placed on a person when they’re made bankrupt usually end when they’re free from their debts (known as ‘discharged’). You can check if someone has been discharged using the Insolvency Register.

Appoint directors and a company secretary

Decide about shareholders or guarantors

Most limited companies are ‘limited by shares’. This means they’re owned by shareholders, who have certain rights. For example, directors may need shareholders to vote and agree changes to the company.

Companies limited by guarantee have guarantors and a ‘guaranteed amount’ instead of shareholders and shares.

Most companies have ‘ordinary’ shares. This means directors get one vote on company decisions per share and receive dividend payments.

Companies limited by guarantee

Shareholders and guarantors

Prepare memo and articles of association

When you register your company you need:

a ‘memorandum of association’ - a legal statement signed by all initial shareholders or guarantors agreeing to form the company
‘articles of association’ - written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary

Memorandum of association

Articles of association

Memorandum and articles of association

Register your company

Most companies register for Corporation Tax and PAYE as an employer at the same time as registering with Companies House.

You’ll need to register for Corporation Tax using this service if you registered your company:

with Companies House but you have not registered for Corporation Tax
by post
using an agent
using third-party software

Register within 3 months of starting to do business. This includes buying, selling, advertising, renting a property and employing someone. You can check if you’re unsure what counts as starting to do business.

How to register

You’ll need your company’s Government Gateway user ID and password to sign in. If you do not have a user ID, you can create one when you sign in.

You’ll also need your company’s 10-digit Unique Taxpayer Reference (UTR). This is posted to your company address by HM Revenue and Customs (HMRC) within 14 days of the company being registered with Companies House (incorporated).