A STEP-BY-STEP GUIDE TO STARTING A BUSINESS IN THE UK IN 2025

Opening a business in the UK in 2025 is a relatively streamlined and attractive process for entrepreneurs around the world. With a favourable business environment and clear regulations, it remains and excellent choice for setting up a business. In this step-by-step guide to starting a business in the UK in 2025, we explain in detail the process, requirements and timelines needed to successfully register your company.

Prerequisites for starting a business in the UK

Before starting the registration process, it is essential to meet certain basic requirements.

1.     Choosing your company’s legal structure

The first step is to define the legal structure that best suits your business. Common options include:

• • • Sole Trader. Self-employed with personal liability for the debts of the business.
    • Partnership. Company with shared liability among the partners.
    • Limited Company (LTD). Legal entity with limited liability for the shareholders.

2.     Company name

The company name must be unique and must not infringe trademarks. You can check availability on the website of Companies House, the company registration authority in the UK.

3.     Registered address

Every company must have a physical address in the UK for legal and administrative purposes. If you do not have an office, you can use virtual address services.

4.     Director and shareholders         

For a Limited Company (LTD), at least one director and one shareholder are required. The director is responsible for the legal compliance of the company.

5.     HMRC compliance

Registering your company with HM Revenue & Customs (HMRC) is mandatory to comply with tax and duty regulations.

Step by step to register your company in the UK

Step 1. Register with Companies House

Thep process of registering a Limited Company is done online at the Companies House website and generally takes less than 24. To do this you need to:

• • • Company name.
    • Registered address.
    • Detail of director and shareholders.
    • SIC (Standard Industrial Classification) code to define the business activity.
    • Memorandum and Articles of Association.
    • Payment of the registration fee (approximately £12 if done online).

Step 2. Obtain Tax Identification Number (UTR)

Once registered with Companies House, you will receive a Unique Taxpayer Reference (UTR) within 10 days. This number is required for your tax return.

Step 3. Registering with HMRC for tax purposes

You must register your company with HMRC to:

• • • Corporation Tax.
    • VAT (Value Added Tax) if your annual income is over £85k.
    • PAYE (Pay As You Earn) if you will be hiring employees.

Step 4. Open a business bank account

To manage your business finances, you will need a UK business bank account. Banks usually require:

• • • Company registration documents.
    • Proof of identity and address of director.
    • Business plan (in some cases).

Step 5. Obtain licenses and permits

depending on the type of business, you may need specific licenses. For example:

• • • Liquor license.
    • Licences to operate in the health or food sector.
    • Registration with the ICO (Information Commissioner’s Office) if you handle personal data.

Step 6. Hire employees (if applicable)

If you plan to hire employees, you must comply with labour regulations, register the company with PAYE and provide adequate employment insurance.

Step 7. Maintain legal and tax compliance

Companies in the UK must submit annual financial reports to Companies House and tax returns to HMRC. It is also advisable to have the support of an accountant to ensure legal compliance.

Estimated process times

Registration with Companies House can be completed within 24 hours. Obtaining the UTR can take up to 10 days. Registering with HMRC and opening a bank account can take 2-4 weeks. Depending on the type of business, obtaining licenses and permits may require additional time.

Conclusion

Opening a business in the UK in 2025 is a quick process if you follow the right steps. Clear documentation and legal compliance are key to a successful operation. With this guide, you will be able to set your business and operate in one of the most dynamic markets in the world.