How to Register a Business in the UK: 2026 Step-by-Step Guide

Registering a business in the UK sounds like it should be one simple form — but the right process depends entirely on how you plan to trade. Sole traders register differently to limited companies, and the costs, deadlines and paperwork involved aren’t the same for either.

This guide walks through exactly how to register a business in the UK in 2026, whichever structure fits you: sole trader, partnership, or limited company. You’ll find the current Companies House fees (which changed in February 2026), the HMRC deadlines that catch people out, and the naming rules most guides skip over.

Key Takeaways

• Sole traders don’t register with Companies House at all — only with HMRC for Self Assessment, and only once earnings pass £1,000 in a tax year.
• Limited company incorporation now costs £100 online (up from £50 before 1 February 2026), or £156 for same-day digital processing.
• You must register a new limited company for Corporation Tax within 3 months of starting to trade — this is separate from incorporation itself.
• Sole trader trading names aren’t legally protected; only limited company names are reserved at Companies House.
• The confirmation statement — an annual Companies House filing every limited company must submit — now costs £50 online.
• Missing HMRC’s 5 October sole trader registration deadline risks a “failure to notify” penalty, even if you eventually file on time.

Table of Contents

1. What Does “Registering a Business” Actually Mean?
2. Choosing Your Structure: Sole Trader, Partnership or Limited Company
3. How to Register as a Sole Trader
4. How to Register a Limited Company
5. Registering Your Business Name
6. Common Registration Challenges
7. Business Bank Accounts and What Comes Next
8. Illustrative Examples
9. Common Mistakes to Avoid
10. Sole Trader or Limited Company? Decision Framework
11. What Does Registration Actually Cost?
12. Deadlines and Checklists
13. FAQs

What Does “Registering a Business” Actually Mean?

“Registering a business” in the UK means telling the right government body that you’ve started trading — HMRC if you’re a sole trader, and Companies House (plus HMRC) if you’re forming a limited company. There’s no single “start a business” form that covers everyone; the registration route depends entirely on your legal structure.

This trips people up because sole traders often assume they need to “register a company” when they don’t — a sole trader is simply you, trading under your own name or a business name, with no separate legal registration beyond notifying HMRC. Only limited companies and LLPs are formally incorporated at Companies House.

Choosing Your Structure: Sole Trader, Partnership or Limited Company

Most new UK businesses choose between three structures: sole trader (simplest, no Companies House registration), partnership (two or more people sharing profits and liability), and limited company (a separate legal entity offering limited liability but more admin). Your choice determines which registration process below applies to you.

How to Register as a Sole Trader

To register as a sole trader, go to GOV.UK and register for Self Assessment once your self-employment income passes £1,000 in a tax year — the deadline is 5 October after the end of the tax year you started trading, and HMRC then posts you a Unique Taxpayer Reference (UTR).

1. Decide whether to trade under your own name or a business name (no registration needed either way).
2. Go to gov.uk and register for Self Assessment as self-employed.
3. Set up a Government Gateway account if you don’t already have one.
4. Wait for your UTR to arrive by post — keep it safe, you’ll need it every tax year.
5. Start keeping digital records of income and expenses from day one.

How to Register a Limited Company

To register a limited company, incorporate with Companies House online (£100 as of February 2026), then register separately for Corporation Tax with HMRC within 3 months of starting to trade. Incorporation and tax registration are two distinct steps, and missing the second one is a common oversight.

1. Choose and check your company name (see the naming section below).
2. Appoint at least one director — a sole director with no company secretary is legally fine for most small companies.
3. Decide on shareholders and share structure — for a single-owner company, this is often just you.
4. Provide a UK registered office address (this appears on the public register).
5. Incorporate online at gov.uk — standard digital filing costs £100, same-day digital costs £156, paper filing costs £124.
6. Register for Corporation Tax with HMRC within 3 months of starting to trade.
7. File a confirmation statement at least once a year (£50 online) to keep company details up to date.

Registering Your Business Name

Sole trader trading names aren’t registered or legally protected anywhere; only limited company names are reserved with the Companies House registrar once you incorporate. This is one of the most misunderstood parts of business registration.

• Sole traders can trade under any name, but can’t use “Limited,” “Ltd,” “LLP” or “PLC” — those are reserved for incorporated structures.
• Check the Companies House register and the UK Trade Marks Register before settling on a name, even as a sole trader, to avoid trademark disputes later.
• Limited company names are checked for uniqueness by the Companies House registrar during incorporation — a duplicate or too-similar name will be rejected.
• Registering a company name doesn’t automatically give you trademark protection — that’s a separate process through the Intellectual Property Office.

Common Registration Challenges

The most common registration challenges are confusing “starting a business” with “registering a company,” missing the 5 October sole trader deadline, registering for Corporation Tax late, and assuming a business name is protected when it isn’t.

• Assuming a sole trader needs to “register a company” when they don’t
• Missing the 5 October Self Assessment registration deadline after the first year of trading
• Forgetting that Corporation Tax registration is separate from Companies House incorporation
• Choosing a company name that’s rejected for being too similar to an existing one
• Not budgeting for the confirmation statement as an ongoing annual cost

Business Bank Accounts and What Comes Next

Sole traders can legally use a personal bank account, though a separate business account makes record-keeping far easier; limited companies must have a separate business bank account, since the company is a distinct legal entity from its director. Once registered, most new businesses also need to check licensing requirements, consider business insurance, and set up bookkeeping software ready for Making Tax Digital.

Illustrative Examples

Illustrative Example — Sole Trader: A freelance graphic designer starts picking up paid clients in June. Once their income passes £1,000 for the tax year, they register for Self Assessment by the following 5 October and receive their UTR a few weeks later.

Illustrative Example — Limited Company: Two co-founders incorporate a consultancy online for £100, appoint themselves as directors, and register for Corporation Tax within the first month of trading — well inside the 3-month deadline.

Illustrative Example — Name Rejection: A founder tries to incorporate “Bright Marketing Ltd” but the name is rejected as too similar to an existing company. They check the Companies House register first next time, before settling on a final name.

Common Mistakes to Avoid

Editor’s Insights

• Incorporating a company and registering for Corporation Tax feel like one step to most first-time founders — they’re legally two separate registrations with two separate deadlines.
• A UK-registered office address doesn’t need to be where you actually work; many small companies use an accountant’s address or a virtual office.
• Non-UK residents can register a UK limited company, provided they have a UK registered office address — UK citizenship isn’t required.
• The February 2026 Companies House fee rise was explicitly linked to funding stronger identity verification checks, not just inflation.
• A sole trader can switch to a limited company later without losing their trading history — but the timing is easier to manage around your accounting year-end than mid-year.

Sole Trader or Limited Company? Decision Framework

1. Do you want the simplest possible start? Sole trader registration is free and takes minutes online.
2. Do you need personal liability protection? Only a limited company separates your personal assets from business debts.
3. Can you manage extra admin? Limited companies mean a confirmation statement, statutory accounts and Corporation Tax filing on top of Self Assessment.
4. Will your profits comfortably clear your personal allowance? If yes, ask an accountant whether incorporating now makes tax sense — it usually becomes worth considering above roughly £30,000 in consistent profit.

What Does Registration Actually Cost?

Current, government-confirmed Companies House fees since 1 February 2026:

Ongoing cost: every limited company must also file a confirmation statement at least annually — £50 online. For help weighing up ongoing accounting costs once registered, see our accountant cost guide.

Registration Deadlines Checklist

• ☐ 5 October — deadline to register as a sole trader for Self Assessment, after the tax year you started trading
• ☐ Within 3 months of trading — deadline to register a new limited company for Corporation Tax
• ☐ At least once every 12 months — confirmation statement due for every limited company
• ☐ 31 January — first Self Assessment deadline once registered as a sole trader (for the relevant tax year)

Getting Set Up: Housekeeping Checklist

• ☐ Decide your structure before registering — it’s harder to unwind a limited company than to incorporate one later
• ☐ Check your chosen name against the Companies House register and Trade Marks Register
• ☐ Open a dedicated business bank account, even as a sole trader
• ☐ Set up MTD-ready bookkeeping software from day one
• ☐ Diarise your registration deadline and, for companies, your confirmation statement date
• ☐ Check whether your business needs any sector-specific licence or permit

Frequently Asked Questions

How much does it cost to register a business in the UK?
Registering as a sole trader is free. Registering a limited company costs £100 online (£156 for same-day processing), following the Companies House fee increase from 1 February 2026.

Do I need to register a business if I’m self-employed?
Yes — once your self-employment income exceeds £1,000 in a tax year, you must register for Self Assessment with HMRC by 5 October after that tax year ends.

What’s the difference between registering with HMRC and Companies House?
HMRC registration relates to tax (Self Assessment or Corporation Tax); Companies House registration formally incorporates a limited company or LLP as a separate legal entity. Sole traders only deal with HMRC.

Can I register a business name without forming a company?
You can trade under any name as a sole trader without registering it anywhere, but it isn’t legally protected — only incorporating a limited company reserves that exact name with the Companies House registrar.

How long does it take to register a limited company?
Standard digital incorporation is usually processed within 24 hours; same-day digital filing (via approved software) can complete on the same working day for a higher fee.

Can someone who isn’t a UK resident register a UK business?
Yes — non-UK residents can register a UK limited company, provided they have a UK registered office address; UK citizenship isn’t a requirement.

Do I need to register for VAT when I register my business?
Not automatically — VAT registration is only required once your taxable turnover exceeds £90,000 in any rolling 12-month period, though you can register voluntarily earlier.

What happens if I miss the sole trader registration deadline?
You may face a “failure to notify” penalty from HMRC, even if you go on to file your tax return correctly once registered — it’s best to register as soon as you know you’ve crossed the £1,000 threshold.

Sources & References

• Companies House / GOV.UK — official fee changes effective 1 February 2026
• HMRC / GOV.UK — registering for Self Assessment as a sole trader
• HMRC / GOV.UK — registering a limited company for Corporation Tax
• Intellectual Property Office — UK Trade Marks Register
• GOV.UK — VAT registration thresholds

About the Author

Written and reviewed by the Epiclectic Editorial Team. Epiclectic is an independent UK publication owned by Eternity Accountants Limited, publishing practical, fact-checked guides across accounting, business, home & living, gardening, travel, sustainability and wellness.
Editorial standards: original research, fact-checking against official sources, and regular review.
Last reviewed: September 2026

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• Accountant for Small Business Cost: Essential UK Guide 2026
• Explore more Business guides
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In Summary

Registering a business in the UK is quick once you know which route applies to you — sole traders need nothing more than a free HMRC registration, while limited companies go through Companies House first and HMRC second. The costs are modest, but the deadlines are strict and easy to miss if you’re not watching for them.

If you’re still deciding which structure suits you, our guide to starting a small business in the UK covers the bigger picture — or explore more Business guides on Epiclectic for what comes next.