Pre-trading approvals UK-wide

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.

Guide summary

Use this checklist before your first day of trading to make sure you have completed all legal requirements. Register with HMRC, check if you need insurance, and get any licences or permits your business needs.

  • Choose your business structure: sole trader, limited company, partnership or LLP
  • Register with Companies House if you set up a limited company or LLP
  • Register for self-assessment with HMRC within 3 months of starting
  • Register for corporation tax within 3 months if you are a limited company
  • Pay the ICO data protection fee before trading if you handle personal data
  • Register for PAYE before your first payday if you hire staff
  • Check if you need VAT registration when turnover exceeds £90,000
  • Set up a workplace pension if you employ eligible staff
  • Get employers’ liability insurance if you hire anyone – fine from £2,500 per day
  • Check if you need a licence or permit on GOV.UK Licence Finder
On this page

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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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