Journey

Open a second premises

Expand to an additional site - lease and planning checks before you sign, business rates on a second property, site-specific licences, and fire, safety, and insurance duties at the new premises.

Growing & Scaling Updated 3 September 2026
6 milestones references 12 guides

About opening a second premises

Taking on a second site is a different exercise to your first. You already know how to run a compliant premises - the work here is applying that experience correctly to a new property, without assuming everything simply carries over. Some obligations are per-property (rates, licences, fire risk assessments). Others are per-business and unaffected by adding a site (your VAT registration, your legal entity, your data protection registration). Getting the two mixed up is the most common source of delay and unexpected cost.

  1. Decide on the site and commit carefully

    Before you sign anything, check the property's planning use class matches what you intend to do there. A change of use between classes can require a planning application, and applications take weeks to months to determine. Discovering a mismatch after signing a lease is expensive to fix.

    Check whether you need planning permission

    Understand Use Classes, change of use rules, permitted development rights, and how to get a Certificate of Lawful Use before you commit to a property.

    Weigh up renting the new premises

    What to consider when renting commercial property, including lease length, location, and total occupancy cost.

    Understand what you're signing

    Lease type determines who pays for repairs and building maintenance. An FRI (full repairing and insuring) lease can leave you liable for dilapidations at the new site that you did not budget for. Check break clauses, rent review terms, and alienation provisions (whether you can assign or sublet) before signing.

    Understand commercial lease obligations

    Lease types (FRI, IRI, EFRI), security of tenure, rent reviews, break clauses, service charges, and dilapidations liability at lease end.

  2. Work out business rates on the new site

    You pay business rates on each non-domestic property you occupy, so the new site brings its own rates bill and its own rateable value. If you currently claim Small Business Rate Relief, taking on a second property commonly reduces or removes that relief - the rules and thresholds vary by nation and depend on the rateable value of each property, so check your specific position rather than assuming relief simply continues.

    Notify the Valuation Office Agency (or the relevant devolved body) and your local council about the new property so your rates account is set up correctly from the start.

    Understand business rates

    How business rates are calculated, who is liable, and how having more than one property affects your bill.

    Check business rates relief schemes

    How Small Business Rate Relief and other reliefs work when you occupy more than one property, and the nation-specific thresholds that apply.

  3. Sort licences and registrations for the new site

    Premises-specific licences do not transfer between sites. A premises licence, food business registration, or other site-based permit that covers your existing location does not extend to the new one - you need to apply, register, or notify again for the new address, even though it is the same legal business.

    Work out what applies to the new site specifically. This depends on what you do there and where it is, not on what you already hold elsewhere.

    Check what licences your business needs

    Work out which licences and permits apply to a given site, and how far in advance you need to apply.

  4. Get the new building compliant

    Fire safety, health and safety, and accessibility obligations apply per site. Holding a compliant existing premises does not carry those duties over to the new one - each property needs its own assessment.

    Before you open the new site, you need a fire risk assessment for that specific building, a health and safety risk assessment covering the work that happens there, and a check that the premises meets your duties on accessibility and reasonable adjustments. You also take on a waste duty of care for the new address from the day you start producing waste there.

    Carry out a fire risk assessment

    Who is responsible, the legal requirements under the Regulatory Reform (Fire Safety) Order 2005, the 5-step process, and recording and review obligations for the new premises.

    Manage workplace risk assessments

    Your duties under the Management of Health and Safety at Work Regulations 1999, applied to the new site's own activities and layout.

    Meet accessibility requirements

    Reasonable adjustments and physical accessibility obligations that apply to the new premises.

    Set up waste duty of care at the new site

    Storing, transferring, and disposing of waste correctly from your first day at the new address, and avoiding fly-tipping liability.

  5. Sort insurance and staffing across both sites

    If you employ anyone, your employers' liability certificate must be available at each place of work, including the new one - check whether you need a separate certificate displayed there or whether your existing policy already covers it. Review your buildings, contents, and public liability cover with your insurer so the new property is properly covered from day one; a policy written for a single site does not automatically extend to a second.

    Decide how you'll staff the new site - relocating existing staff, splitting time across both sites, or recruiting locally. Each option has different practical and contractual implications worth thinking through before you commit to an opening date.

    Understand your business insurance needs

    Mandatory and recommended cover including employers' liability, public liability, and buildings and contents insurance, and what changes when you add a second site.

    Hiring your first employee

    If staffing the new site means recruiting for the first time in that role, this covers contracts, PAYE, and your obligations as an employer.

  6. Tell the right people

    Update HMRC and your own records with the new address so your correspondence and any site-specific filings go to the right place. Your VAT registration does not change - you're still the same legal entity trading from an additional location, so there's no new VAT registration to make. Your data protection registration with the ICO is also unaffected by adding a site, though you should update your own records of processing if the new premises changes what personal data you handle or where.

    Check your data protection registration

    Confirm your existing ICO registration and fee tier still match what you do once the new site is operating.

Related resources

Opening a hospitality site

If the new premises is a restaurant, cafe, pub, or other hospitality venue, this sector-specific journey covers premises licensing, food registration, and kitchen fit-out in full.

Growing your business

Wider funding, hiring, and expansion considerations beyond the new premises itself.