Pre-trading approvals

Pre-trading compliance checklist

A concise yes/no checklist to verify you have completed all mandatory pre-trading requirements, including business registration, tax, insurance, licences, premises approvals, and data protection.

UK-wide
Guide summary

Check you have met all legal requirements before starting your business. Register your business structure, pay taxes, get insurance, and apply for licences if needed. Complete each section on this checklist to avoid penalties.

  • Register your business structure with Companies House if limited
  • Sign up for self-assessment within 3 months if a sole trader
  • Pay corporation tax within 3 months if a limited company
  • Pay the ICO data protection fee if handling personal data
  • Register for PAYE before your first payday if hiring staff
  • Check if VAT registration is needed (£90,000 annual turnover)
  • Get employers' liability insurance if you employ anyone (£5m cover)
  • Check if you need a licence for your business activity
  • Complete a fire risk assessment if you have premises
  • Retain employers' liability certificates for 40 years
On this page
UK-wide

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Use this checklist before your first day of trading to confirm you have met all mandatory requirements. Work through each section and resolve any gaps before you begin.

Business structure

  • Business structure chosen (sole trader, limited company, partnership, or LLP)
  • Registered with Companies House (if limited company or LLP)
  • Received company registration number and certificate of incorporation (if applicable)
  • Persons with significant control (PSC) register completed (if limited company)

Tax registration

  • Registered for self-assessment with HMRC (sole traders and partners)
  • Registered for corporation tax with HMRC (limited companies — within 3 months of starting to trade)
  • Registered as employer for PAYE (if hiring staff — before first payday)
  • Checked whether VAT registration is required (taxable turnover approaching or exceeding threshold)
  • Unique Taxpayer Reference (UTR) received

Data protection and insurance

  • ICO data protection fee paid (or exemption confirmed)
  • Employers' liability insurance arranged (if hiring anyone)
  • Motor insurance covers business use (if using vehicles for business)
  • Professional indemnity insurance arranged (if required by professional body)
  • EL certificate displayed where employees can access it

Licences and permits

  • Checked GOV.UK Licence Finder for activity-specific requirements
  • Premises licence applied for (if selling alcohol, providing entertainment, or serving late-night refreshment)
  • Food business registered with local authority (if handling food — at least 28 days before trading)
  • Waste carrier registration obtained (if transporting waste)
  • Professional or sector-specific registration completed (if in a regulated sector)
  • Health and safety notification submitted to HSE (if required for your activity)

Premises

  • Planning permission confirmed for intended business use (or permitted development rights checked)
  • Business rates registration completed with local authority (if occupying commercial premises)
  • Building regulations sign-off obtained for any alterations
  • Fire risk assessment completed and documented

If you answered 'no' to any item in the business structure, tax registration, or data protection sections, you should not begin trading until the gap is resolved. Operating without required registrations or insurance is a criminal offence that can result in unlimited fines, daily penalties, or prosecution. See mandatory registrations every business must complete for step-by-step instructions.

Planning your timeline

If you have gaps to fill, use our pre-trading timeline to understand how long each application takes and when to submit it.

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