Start and Register a Childcare Business

Starting a childcare business requires careful planning and mandatory registration with Ofsted. Whether you're opening a nursery, preschool, or becoming a childminder, you must meet strict regulatory requirements before you can care for children.

This guide covers the essential steps to register with Ofsted, comply with the Early Years Foundation Stage (EYFS) framework, and set up your childcare business legally and safely.

Who needs to register with Ofsted?

You must register with Ofsted if you provide childcare for children under 8 years old in England for 2 or more hours per day and receive payment for it.

Compulsory registration applies to:

Nurseries and preschools
Childminders caring for children in a domestic setting
Holiday clubs and after-school clubs for children aged 5-7
Nannies working on non-domestic premises or caring for 3+ families

Exemptions: Schools running clubs on their own premises for their registered pupils are exempt. Short-term provision (5 days or fewer per year) is also exempt.

Ofsted registration costs and timescales

Budget for registration fees and allow sufficient time for the registration process before you plan to open:

Ofsted Registration Fees and Timescales

Childcare Register application fee: £103
Early Years Register application fee: £103
Both registers combined fee: £206
Annual fee per register: £35 per year
Registration processing time: Up to 12 weeks from complete application
First inspection timing: Within 30 months of registration

Step-by-step: Register with Ofsted

The Ofsted registration process is thorough and can take up to 12 weeks. Start well before your planned opening date:

Register with Ofsted as a Childcare Provider

Determine which register you need: Early Years Register for children 0-5, Compulsory Childcare Register for ages 5-7, or Voluntary Childcare Register for 8+ or exempt care. You may need multiple registers.
Complete pre-registration training: Obtain paediatric first aid certificate (12-hour course), safeguarding and child protection training, and register with local authority quality assurance scheme if available.
Obtain Enhanced DBS check: Apply for Enhanced DBS check with children's barred list. This costs £59.40 and takes approximately 14 days. Certificate must be dated within 3 months of application.
Create Ofsted online account: Go to GOV.UK Ofsted registration service and create an account to begin your application.
Complete application form: Provide personal details, qualifications, premises details, DBS certificate number, insurance details, health declaration, and two references (not family members).
Pay application fee: Pay £103 per register (maximum £206 if registering for multiple registers) by debit or credit card.
Submit supporting documents: Upload proof of identity (passport or birth certificate with photo ID), proof of address, qualification certificates, first aid certificate, DBS certificate, and insurance certificate.
Attend Ofsted interview and inspection: Ofsted will contact you within 12 weeks to arrange a premises inspection and interview. Prepare all areas children will access and your policies.
Address any conditions: If Ofsted sets conditions or actions, complete these before full registration is granted.
Receive registration: You'll receive your registration certificate and Unique Reference Number (URN) by post. You can then legally begin providing childcare.
Pay annual fee: Pay £35 per register annually to maintain your registration.

DBS checks for childcare workers

Everyone working with children must have an Enhanced DBS check with children's barred list check. This includes all staff, volunteers, and household members if you're a childminder.

DBS Checks for Childcare Workers

Enhanced DBS requirements, costs, and process for childcare sector

Type required: Enhanced DBS check with barred list check
Cost: £49.50 (2025/26)
Processing time: Average 14 days (80% completed within 14 days)
Validity: No expiry, but employers should request recent checks (within 3 months typically)
Update Service subscription: £16 per year (allows employers to check status online)
Portability: DBS certificate belongs to applicant and can be shown to multiple employers
Who needs a check: All staff, volunteers, and household members (for childminders) in regular contact with children

Apply through an umbrella body: Individuals cannot apply directly for enhanced DBS. Apply through your employer, Ofsted, or a registered umbrella body. Cost varies (typically £49.50-£70 including admin fees).
Subscribe to the Update Service: Within 30 days of receiving your certificate, subscribe to the DBS Update Service (£16/year). This allows future employers to check your status online instantly.
Share certificate with employer: The DBS certificate is sent to you, not the employer. You must share it with your employer. Keep a copy for your records.

DBS check application

EYFS framework compliance

All registered childcare providers in England must follow the Early Years Foundation Stage (EYFS) statutory framework. This sets standards for learning, development, safeguarding, and welfare of children from birth to 5 years.

Key EYFS requirements:

EYFS Statutory Staff-to-Child Ratios

Children under 1 year: 1 adult to 3 children
Children aged 1 year: 1 adult to 3 children
Children aged 2 years: 1 adult to 4 children
Children aged 3+ years (standard): 1 adult to 8 children
Children aged 3+ years (with qualified teacher): 1 adult to 13 children
Childminders - total children under 8: Maximum 6 children
Childminders - children under 5: Maximum 3 children
Childminders - children under 1: Usually 1 child

Staff qualifications

Ofsted requires specific qualification levels for early years staff:

EYFS Staff Qualification Requirements

Level 3 qualified staff requirement: At least half of all staff
Manager minimum qualification: Level 3 with 2 years experience
Childminder minimum qualification: Level 3 or working towards within 18 months
Paediatric first aid requirement: At least 1 qualified person on premises at all times
First aid certificate validity: 3 years
First aid course duration: 12 hours (full) or 6 hours (emergency)
Designated safeguarding lead: Mandatory in all settings
SENCO (Special Educational Needs Coordinator): Required in all group settings

Premises requirements

Your childcare premises must meet statutory space and facilities requirements:

EYFS Premises and Space Requirements

Indoor space per child under 2 years: 3.5 m² (net usable space)
Indoor space per child aged 2 years: 2.5 m² (net usable space)
Indoor space per child aged 3-5 years: 2.3 m² (net usable space)
Outdoor space requirement: Access to outdoor area or daily outdoor activities
Toilet facilities: Age-appropriate, separate from staff where possible
Nappy changing facilities: Required if caring for children under 3
Hygiene facilities: Handwashing facilities accessible to children
Sleeping area: Safe sleep area if children nap
Food preparation area: Separate hygienic area if preparing meals

Business registration and tax

Beyond Ofsted registration, you need to register your childcare business with HMRC and ensure proper insurance coverage:

Setting Up as a Childcare Business

Business registration, tax, and employment requirements for childcare providers

Register as self-employed or company: Childminders typically register as self-employed with HMRC. Nurseries may register as limited companies with Companies House. Register within 3 months of starting trading.
Open business bank account: Separate your business and personal finances. Most providers use a dedicated business account for clarity and tax purposes.
Register for tax and National Insurance: Self-employed: register for Self Assessment by 5 October after your first tax year. Pay Class 2 and Class 4 NICs.
Get business insurance: Public liability insurance (minimum £5 million recommended), employers' liability if hiring staff (£5 million legally required), professional indemnity optional.
Register as a food business: If providing meals or snacks, register with your local authority's Environmental Health department at least 28 days before opening. Registration is free.
Set up payroll if employing staff: Register as an employer with HMRC. Set up PAYE for employees. Auto-enrol eligible staff into workplace pension.

Funding opportunities

Once registered, you can claim government funding on behalf of parents. This makes your childcare more affordable and attractive to families:

15 Hours Universal Free Childcare Entitlement

Universal entitlement for 3-4 year olds and eligible 2 year olds

All 3 and 4 year olds in England are entitled to 15 hours of free early education per week, for 38 weeks per year (570 hours total). This is universal - no income requirements.

Some 2 year olds are also eligible for 15 free hours if their family receives certain benefits or if the child has specific needs.

Entitlement (3-4 year olds): 15 hours per week, 38 weeks per year (570 hours)
When entitlement starts: Term after child's 3rd birthday
2 year old eligibility: Family receiving benefits OR child has EHC plan/receives DLA
Stretching hours: Can stretch 570 hours across more weeks (e.g., 11 hours for 51 weeks)
Provider funding rate (3-4s): Varies by local authority - typically £5.00-£7.50 per hour
Provider funding rate (2s): Higher rate - typically £6.00-£8.00 per hour

Sign agreement with local authority: To claim funding, you must have a Provider Agreement with your local authority. Contact your local authority's early years team.
Complete headcount returns: Submit headcount data each term (January, May, September) through your local authority portal. This confirms how many funded children you have.
Check parent eligibility codes: For extended entitlements (30 hours), verify parents' eligibility codes using the Provider Portal before offering funded places.

Early education and childcare

30 Hours Extended Free Childcare Entitlement

Extended entitlement for working parents of 3-4 year olds

Working parents of 3 and 4 year olds in England can get 30 hours of free childcare per week, 38 weeks per year (1,140 hours total). Both parents must be working (or single parent working).

Entitlement: 30 hours per week, 38 weeks per year (1,140 hours)
Minimum earnings per parent: £2,379 per year (equivalent to 16 hours at National Minimum Wage)
Maximum earnings per parent: £100,000 adjusted net income
Both parents must work: Yes (if couple) - exceptions for disability/caring responsibilities
Reconfirmation requirement: Every 3 months via Childcare Service account
Code validity for providers: Valid codes can be checked on Provider Portal

Direct parents to apply: Parents apply through the Childcare Service (gov.uk). They receive an eligibility code to give to you.
Verify eligibility codes: Check codes on the Provider Portal before offering 30-hour places. Codes show validity period and any grace period.
Remind parents to reconfirm: Parents must reconfirm every 3 months. If they don't, they enter a grace period and may lose extended hours.

30 hours free childcare

Free Childcare for Under-2s (Current Phase)

Extended entitlement for working parents of children under 2

The government expanded free childcare to working parents of younger children from 2024:

9-23 months (from September 2024): 15 hours per week for working parents
9-23 months (from September 2025): 30 hours per week for working parents
2 year olds - working parents: 30 hours per week (from September 2024)
Eligibility criteria: Same as 30 hours: minimum £2,379/parent, max £100,000
Provider funding rate (under 2s): Higher rate than older children - typically £8-£11 per hour

Key dates for under-2 entitlement rollout:

April 2024: 15 hours for working parents of 2 year olds
September 2024: 15 hours for 9-23 month olds; 30 hours for 2 year olds
September 2025: Full 30 hours for all working parents from 9 months

Help paying for childcare

Tax-Free Childcare Scheme

Government scheme providing 20% top-up on childcare costs

Tax-Free Childcare provides a government top-up of £2 for every £8 parents pay into a childcare account (effectively 20% extra). Parents can use it to pay any Ofsted-registered childcare provider.

Government contribution: £2 for every £8 paid by parent (20% top-up)
Maximum annual top-up: £2,000 per child (£500 per quarter)
Maximum for disabled children: £4,000 per year (£1,000 per quarter)
Can combine with 30 hours?: YES - can use both schemes together
Cannot combine with: Tax Credits, Universal Credit childcare element
Provider requirement: Must be Ofsted-registered (or Care Inspectorate in Scotland)

Set up your provider account: Register on the Childcare Service Provider Portal to receive Tax-Free Childcare payments from parents.
Provide your URN to parents: Parents need your Ofsted URN to set up payments to you through their Tax-Free Childcare account.
Process payments: Payments from Tax-Free Childcare accounts are typically received within 3 working days.

Tax-Free Childcare

Penalties for non-compliance

Operating without registration or breaching EYFS requirements carries serious penalties:

Childcare Regulation Penalties and Enforcement

Operating without Ofsted registration: Criminal offence, unlimited fine
Failure to notify Ofsted of changes: Up to £5,000 fine
Ratio breaches: Enforcement action, possible immediate suspension
Failed DBS checks: Immediate suspension, prosecution possible
EYFS non-compliance: Notice to Improve, prosecution, or closure
Safeguarding failures: Immediate suspension or cancellation of registration
False information on application: Prosecution, up to 6 months imprisonment
Obstructing Ofsted inspection: Criminal offence, unlimited fine

Business Context Testing

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Start and Register a Childcare Business

Who needs to register with Ofsted?

Ofsted registration costs and timescales

Step-by-step: Register with Ofsted

DBS checks for childcare workers

EYFS framework compliance

Staff qualifications

Premises requirements

Business registration and tax

Funding opportunities

Penalties for non-compliance

Compliance Assistant

🧪 Business Context Testing

◉ Content Graph

Who needs to register with Ofsted?

Ofsted registration costs and timescales

Step-by-step: Register with Ofsted

DBS checks for childcare workers

EYFS framework compliance

Staff qualifications

Premises requirements

Business registration and tax

Funding opportunities

Penalties for non-compliance

Related guides in CQC Registration

Business Context Testing

Content Graph