Guide
Mandatory registrations every business must complete
Step-by-step guide to the registrations every business must complete before trading, regardless of sector. Covers HMRC tax registration, ICO data protection fee, mandatory insurance, and pension auto-enrolment.
You must register your business structure, taxes, and data protection fee before trading. The steps depend on whether you are a sole trader, limited company, or partnership. Missing deadlines can lead to penalties.
- Register as a sole trader with HMRC by 5 October in your second tax year
- Limited companies must register with Companies House and HMRC for corporation tax
- Partnerships need self-assessment registration for the partnership and each partner
- Pay the ICO data protection fee if you process personal data (from £40/year)
- Register for PAYE before your first payday if you employ staff
- VAT registration required if turnover exceeds £90,000 in 12 months
- Set up pension auto-enrolment from day one if employing eligible staff
- Late registration can trigger penalties up to 100% of tax due
- ICO fee tiers depend on turnover and staff numbers
- Corporation tax registration must happen within 3 months of trading
Every business in the UK must complete a core set of registrations before it begins trading. Missing a registration deadline can result in penalties, interest charges, or criminal prosecution. This guide walks you through each mandatory registration in the order you should complete them.
1. Register your business structure
Your first step is to register the legal structure of your business. This determines which tax registrations you need and how you file accounts.
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Sole trader
Register for self-assessment with HMRC. You must do this by 5 October in your business's second tax year, but registering before you start trading avoids any risk of late registration penalties.
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Limited company
Register with Companies House. You can do this online in 24 hours or by post in 8 to 10 days. You will also need to register for corporation tax with HMRC within three months of starting to trade.
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Partnership
The nominated partner must register the partnership for self-assessment with HMRC. Each partner must also register individually for self-assessment.
2. Register for the correct taxes
The taxes you register for depend on your business structure, whether you employ anyone, and your turnover. Complete these registrations before the relevant deadlines to avoid penalties.
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Self-assessment (sole traders and partners)
Register online at gov.uk. You will receive a Unique Taxpayer Reference (UTR) by post within 10 working days. You need this before you can file your first tax return.
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Corporation tax (limited companies)
Register with HMRC within three months of your company starting any business activity. HMRC will send you a corporation tax UTR and set your accounting period.
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PAYE (if employing staff)
Register as an employer before your first payday. HMRC can take up to 15 working days to process, so register as soon as you know you will be hiring. You need your employer PAYE reference to run payroll.
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VAT (if required)
You must register within 30 days if your taxable turnover exceeds the VAT threshold in any 12-month period, or if you expect it to exceed the threshold in the next 30 days alone. You may also register voluntarily.
3. Pay the ICO data protection fee
If your business processes personal data (which nearly all businesses do), you must pay an annual fee to the Information Commissioner's Office. The fee tier is based on your turnover and number of employees.
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Check whether you need to register
Use the ICO's self-assessment tool at ico.org.uk to confirm whether an exemption applies. Most businesses must pay.
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Pay online
Register and pay at ico.org.uk. You can pay by direct debit (which gives a small discount) or by card. Registration is usually confirmed within a few days.
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Set a renewal reminder
The fee must be renewed annually. Set a reminder to avoid a lapse in registration, which is a criminal offence.
4. Arrange mandatory insurance
If you employ anyone, you must have employers' liability insurance from their first day. If you use vehicles for business, your motor insurance must cover business use. Some professions also require professional indemnity insurance. Arrange cover before the activity begins — backdating is not possible.
What to do next
Once you have completed these mandatory registrations, check whether your specific business activities require additional licences or permits. Use the GOV.UK Licence Finder or see our guide to approvals and registrations you need before trading for a full overview.
If you are employing staff, you will also need to set up a workplace pension scheme for auto-enrolment. The Pensions Regulator provides a step-by-step tool at thepensionsregulator.gov.uk.