Start a business in the UK
Starting a business in the UK is quick and inexpensive – if you know the order. Three decisions carry everything: the right business structure, your registration with Companies House or HMRC, and a clean tax set-up from day one. This guide gives you the overview and takes you to all the detailed pages.
The key steps at a glance
A start-up runs through a few clear stages: sharpen the business model, choose a business structure, check that your name is available, register – as a sole trader with HMRC for Self Assessment, as a limited company with Companies House – and then set up your business bank account, insurance, bookkeeping and, where needed, VAT and payroll.
How much work it is depends mainly on the structure. As a sole trader you register online with HMRC and can start trading straight away. A private limited company is incorporated online with Companies House, usually within 24 hours – your liability is then limited to the company.
Which business structure suits you?
The structure determines liability, tax, paperwork and how you come across. Rule of thumb: low risk and no start-up capital → sole trader (55% of UK private sector businesses at the start of 2026, according to the Department for Business and Trade). Starting with a partner → partnership or LLP. Limiting your liability → private limited company (Ltd), possible with a share capital of just £1.
Start in a structured way with planix – free
planix guides you from idea to registration: a recommendation on your business structure, all the documents you need and a clear step-by-step plan so you don’t miss anything. You start for free and always see your next task. No time for forms and filings? With the “Done-for-you setup” package, our experts take care of the formation for you.
Frequently asked questions
How long does it take to start a business in the UK?
As a sole trader you can register with HMRC online and start trading at once. A limited company filed online with Companies House is usually incorporated within 24 hours – provided every director and person with significant control has verified their identity beforehand. With planix you have all the details ready in advance.
How much does it cost to start a business in the UK?
Registering as a sole trader with HMRC is free. Incorporating a limited company online with Companies House costs £100 (since 1 February 2026); there is no minimum share capital. Budget for a business bank account, insurance and, ideally, an accountant on top.
Ready to found your company?
Start for free with planix – no registration. Guidance, feedback and next steps, thoroughly reviewed within 24 hours max.
- 600+ founders supported
- Data stored in Europe
- Start for free – no registration