Choose your business structure

Decide whether to trade as a sole trader or limited company.

Find premises

Key considerations for retail premises - location, lease terms, and planning.

Building regulations

If you're fitting out a shop, you may need building regulations approval. Here's what to consider.

When required: All commercial building work must comply with Building Regulations
Application timing: Submit full plans application at least 5 weeks before work starts
Approved Documents: Part A to Part T (Part T, toilet accommodation, added October 2024) covering structure, fire safety, ventilation, energy, accessibility
Completion certificate: Issued after final inspection confirms compliance

Approved Documents (Building Regulations) (opens in a new tab)

gov.uk

Register for business rates (opens in a new tab)

You'll need to pay business rates on your shop premises.

Get retail insurance

Protect your stock, premises, and customers with the right insurance.

Insurance for retailers

Retail businesses need specific insurance cover. Here's what to consider.

UK businesses need different types of insurance depending on their activities. Some are legally required, others are contractually required, and some are optional but prudent. Understanding the differences helps ensure adequate protection.

Employers' Liability: LEGALLY REQUIRED if you employ anyone. Minimum £5m cover. Protects against employee injury/illness claims.
Motor Insurance: LEGALLY REQUIRED for any vehicle used for business. Criminal offence to drive uninsured.
Professional Indemnity: Required for some regulated professions under their profession-specific rules, including many solicitors, financial advisers and architects. Covers negligent advice claims.
Public Liability: NOT legally required but often contractually required by clients. Covers third-party injury/damage claims.
Products Liability: NOT legally required but essential for manufacturers and retailers. Covers claims from defective products.
Business Contents: NOT required but recommended. Covers theft, fire, damage to business assets.
Business Interruption: NOT required but recommended. Covers lost income when you cannot trade.
Cyber Insurance: Increasingly important. Covers data breaches, ransomware, GDPR fines.
Key Person: Optional. Compensates business if critical person dies or is incapacitated.

Choosing the right cover:

Do you employ anyone? Employers' Liability is legally required
Do you use vehicles for work? Business motor insurance is legally required
Are you a regulated professional? Check your regulator's profession-specific Professional Indemnity rules
Do you interact with customers or visit premises? Public Liability is practically essential
Do you sell physical products? Products Liability is strongly recommended

Know consumer rights law

Your customers have legal rights - know your obligations.

Consumer rights for retailers

As a retailer, you must comply with consumer protection law. Here are the key requirements.

Short-term right to reject: Consumers can reject faulty goods within 30 days for a full refund.
Refund timeframe: Must provide refund within 14 days of agreeing consumer is entitled to it.
Repair/replacement: After 30 days, consumers can request repair or replacement before refund.
Return costs: Business pays reasonable return costs unless consumer returns to physical shop.

The Consumer Rights Act 2015 gives consumers strong protections when buying goods and services. Businesses cannot use exclusion clauses or notices to remove these legal rights. Local authority Trading Standards enforce consumer law and can apply for court fines for breaches.

Consumer Rights - GOV.UK (opens in a new tab)

Retail regulations

Retail businesses must comply with various regulations. Here's an overview.

Alcohol sales: Illegal to sell to under-18s. Staff under 18 cannot sell alcohol unless approved.
Tobacco sales: Illegal to sell to under-18s. Must sell in packs of 20+. Fines up to £2,500.
Age verification signage: A3 size minimum notice required for tobacco sales.
Challenge 25 policy: Trading Standards recommend asking for ID from anyone appearing under 25.

Selling alcohol (opens in a new tab)

Fire safety

Complete a fire risk assessment before opening to the public.

Health and safety

Protect your staff and customers with proper health and safety measures.

Health and safety essentials

You have legal duties to protect everyone in your shop. Here's what's required.

Written policy (5+ employees): Required by law - must record your health and safety policy
Risk assessment: All employers must assess workplace risks and act on findings
Employers' Liability insurance: Mandatory £5 million minimum cover (£2,500/day penalty)
First aid provision: Assess needs and provide appropriate equipment and trained staff
Accident book (RIDDOR): Record injuries and report serious incidents to HSE

HSE - Getting started with health and safety (opens in a new tab)

When promoting your shop, make sure you follow advertising rules. Here are the key requirements.

Accuracy: All claims must be truthful and evidence must be available to back them up.
Price information: Prices must be clear. Include VAT if selling to consumers.
Comparisons: Comparisons with competitors are permitted but must be fair and factual.
Endorsements: Paid partnerships and gifted items must be clearly disclosed.

The Advertising Standards Authority (ASA) enforces advertising rules. Breaking the rules can lead to ads being banned and reputational damage.

ico.org.uk

Data protection (opens in a new tab)

If you collect customer data, you must comply with GDPR.

Open a shop

Choose your business structure

Find premises

Register for business rates (opens in a new tab)

Get retail insurance

Know consumer rights law

Fire safety

Health and safety

Register for VAT

Hire staff

Advertise your shop (opens in a new tab)

Data protection (opens in a new tab)

Open a shop

Related journeys

Start a restaurant

Grow your retail business

Start an agriculture business

Start a construction business