Use this quick check to confirm you have the registrations, licences and approvals you need before your first day of trading. The list near the end sets out what to have in place and who issues each item.
Trading without required approvals carries serious penalties including unlimited fines, criminal prosecution, and closure orders. Some registrations take weeks to process, so check early.
Confirm your registrations are complete
Every business needs to register with HMRC, and most that handle personal data must pay the data protection fee to the Information Commission (formerly the ICO). If you are forming a limited company, you also need to register it with Companies House. Check that each registration is confirmed, not just submitted.
Universal registrations
HMRC and Companies House registrations, and the data protection fee, apply to nearly every business.
Every UK business must complete certain registrations before trading, regardless of sector or size. The exact registrations depend on your business structure.
HMRC self-assessment
Mandatory for sole traders and partners. Register by 5 October after the end of the tax year you started.
Corporation tax
Mandatory for limited companies. Register with HMRC within 3 months of starting to trade.
Companies House incorporation
Mandatory for limited companies and LLPs. Must incorporate before trading as a limited company. Online filing from £100 (£156 same-day).
Information Commission data protection fee
Mandatory for most businesses processing personal data. Three tiers from £52 to £3,763 per year depending on turnover or staff numbers.
PAYE registration
Mandatory if employing staff. Register before first payday. Applies to all employers regardless of structure.
VAT registration
Mandatory when taxable turnover exceeds £90,000 in any 12-month period (2024-25 threshold). Voluntary registration available below threshold.
Pension auto-enrolment
Mandatory from day one of employing eligible staff (aged 22-66, earning over £10,000/year). Must set up a qualifying pension scheme.
Sole traders need HMRC self-assessment, to pay the data protection fee to the Information Commission (formerly the ICO), and (if employing) PAYE and auto-enrolment. Limited companies need all of these plus Companies House incorporation and corporation tax registration.
The registrations, licences and approvals to put in place before you start, in order.
Check activity-based licences
Some business activities need a specific licence or permit before you can operate. This includes selling food, serving alcohol, handling waste, providing childcare and offering financial services. If your activity is on the list, apply before you start trading.
Find which licences apply to your business activity, where to apply, and typical processing times.
Every licence and permit we hold, filterable by activity and nation, each one tied to the law behind it and the body that issues it.
What to have in place before you trade
A business structure: choose sole trader, partnership, limited company or limited liability partnership. If you form a limited company or LLP: registration with Companies House, which gives you a company number and certificate of incorporation. If you are a sole trader earning more than £1,000 in a tax year, or a business partner: registration for Self Assessment with HMRC, by 5 October after the end of the tax year in which you first need to send a return. If you run a limited company: Corporation Tax added to your HMRC business tax account when the company starts to do business. If you employ anyone, including yourself as a company director: registration as an employer with HMRC before the first payday, but not more than 2 months before. If your taxable turnover goes over £90,000 in a 12-month period, or you expect it to in the next 30 days: VAT registration with HMRC. If you process personal data: the data protection fee paid to the Commission, unless you are exempt. If you employ anyone: employers' liability insurance of at least £5 million from an authorised insurer, with the certificate where staff can see it. If you employ anyone: a workplace pension scheme for eligible staff from the day your first employee starts. The Pensions Regulator's online tool tells you what to do. If you drive for the business: motor insurance that covers the business use, from your insurer. If you sell or supply alcohol: a premises licence from the council's licensing authority, and a personal licence for whoever authorises sales. If you sell, cook, store, handle, prepare or distribute food: registration with the council, ideally at least 28 days before you start. If you transport, buy, sell or broker waste: registration as a waste carrier, broker or dealer with the environmental regulator. If you use premises: the right planning use for your activity, confirmed with the council's planning team. If you use business or other non-domestic premises: a fire risk assessment, carried out by you or someone competent and reviewed regularly.
Check penalties for anything you have missed
Some missing approvals carry criminal penalties. Others can be put right after trading begins. Know which is which before you decide your start date.
Penalties for trading without approval
Penalties range from fixed fines to unlimited fines and imprisonment depending on the approval missed. If you are not properly insured for employers' liability, you can be fined £2,500 for every day.
Trading without required approvals is a serious matter. Penalties range from daily fines to unlimited fines and imprisonment depending on the offence.
Unlicensed alcohol sales
Unlimited fine and/or up to 6 months' imprisonment (Licensing Act 2003 s.136)
Unregistered food business
Unlimited fine and/or up to 2 years' imprisonment (Food Safety Act 1990)
No employers' liability insurance
£2,500 fine for every day without cover (Employers' Liability (Compulsory Insurance) Act 1969)
No EL certificate displayed
£1,000 fine per offence
Unregistered with HMRC (self-assessment)
Failure to notify penalties up to 100% of tax due, plus interest on late payment (Finance Act 2008 Schedule 41)
Late VAT registration
VAT due from the date you should have registered, plus default surcharge on late returns
Trading without planning permission
Enforcement notice, stop notice, or injunction. Non-compliance with enforcement notice is a criminal offence with unlimited fine.
Unlicensed waste carrying
Unlimited fine and/or up to 2 years' imprisonment (Environmental Protection Act 1990 s.33)
No motor insurance (business use)
Unlimited fine, 6-8 penalty points, possible disqualification, vehicle seizure
Closure order
Local authorities and police can issue closure orders for unlicensed premises, preventing any use of the premises for up to 3 months.
Quick-reference penalty table covering fines, criminal offences, and closure orders for missing approvals.