Journey

Pre-trading approvals quick check

Quick check for experienced business owners verifying they have all required registrations, licences, and approvals before starting to trade.

Starting a Business Updated 15 September 2026

4 milestones references 5 guides

Pre-trading approvals quick check

Use this quick check to confirm you have the registrations, licences, and approvals you need before your first day of trading. Work through each section and follow the signposts to close any gaps.

Run through the checklist

Start with the yes/no compliance checklist. It covers structure registration, tax registration, insurance, data protection, and activity-based licences. If you can tick every item, you are ready to trade.

Pre-trading timeline

Some approvals take longer than others. A premises licence can take 2 to 3 months; HMRC registration typically takes 10 working days. Plan your applications around the longest lead times.

Start the approval process early. Some licences take months to process, and trading without them is a criminal offence.

3 months before trading

Apply for premises licence (alcohol, entertainment) — takes 2-3 months. Apply for planning permission if changing use class. Start professional regulator registration (FCA, CQC).

2 months before trading

Incorporate at Companies House (if limited company). Register for corporation tax. Apply for environmental permits. Contact building control if works needed.

1 month before trading

Register food business with local authority (28-day minimum). Register for PAYE (if employing). Set up employer pension scheme. Apply for waste carrier registration.

2 weeks before trading

Arrange employers' liability insurance (mandatory before first employee starts). Arrange public liability and other business insurance. Register with ICO for data protection fee.

Trading day

Display EL insurance certificate. Ensure food hygiene rating visible (Wales mandatory, England/NI voluntary). Begin PAYE reporting from first payday.

Within 3 months of trading

Register for self-assessment (sole trader) or corporation tax (limited company) if not already done. Register for VAT if turnover will exceed threshold.

Tip: Use the GOV.UK Licence Finder to check what additional licences your specific activity and location require. Lead times vary by local authority.

Pre-trading compliance checklist

Yes/no checklist covering every mandatory pre-trading requirement for UK businesses.
Confirm your registrations are complete

Every business needs HMRC tax registration, and most need ICO data protection registration. If you are forming a limited company, you also need Companies House incorporation. Check that each registration is confirmed, not just submitted.

Universal registrations

HMRC, ICO, and Companies House registrations apply to nearly every business. Missing any of these before you start trading creates an immediate compliance gap.

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 within 3 months of starting to trade (5 October deadline for first tax return year).

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 GBP 100 (GBP 156 same-day).

ICO data protection fee

Mandatory for most businesses processing personal data. Three tiers from GBP 40 to GBP 2,900 per year depending on turnover and 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 GBP 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 GBP 10,000/year). Must set up a qualifying pension scheme.

Sole traders need HMRC self-assessment, ICO fee, and (if employing) PAYE and auto-enrolment. Limited companies need all of these plus Companies House incorporation and corporation tax registration.

Mandatory registrations every business must complete

Step-by-step guide to HMRC, ICO, and Companies House registrations with deadlines and confirmation steps.
Check activity-based licences

Some business activities require 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.

Business licences by activity type

Find which licences apply to your business activity, where to apply, and typical processing times.

Approvals and registrations you need before trading

Master overview of all pre-trading requirements including professional registrations and local authority approvals.

Browse the licence library

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.
Check penalties for anything you have missed

If you have identified gaps, understand the consequences before deciding whether to delay your start date. Some missing approvals carry criminal penalties; others can be resolved after trading begins.

Penalties for trading without approval

Penalties range from fixed fines to unlimited fines and imprisonment depending on the approval missed. Employers' liability insurance carries a £2,500 per day penalty for non-compliance.

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

GBP 2,500 fine for every day without cover (Employers' Liability (Compulsory Insurance) Act 1969)

No EL certificate displayed

GBP 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.

Penalties for trading without required approvals

Quick-reference penalty table covering fines, criminal offences, and closure orders for missing approvals.

Guv’s take

Set calendar reminders: Many approvals require annual renewal or periodic re-registration. Once your initial approvals are in place, diarise renewal dates to avoid lapses.

Pre-trading approvals quick check

Pre-trading approvals quick check

Run through the checklist

Pre-trading compliance checklist

Confirm your registrations are complete

Mandatory registrations every business must complete

Check activity-based licences

Business licences by activity type

Approvals and registrations you need before trading

Browse the licence library

Check penalties for anything you have missed

Penalties for trading without required approvals

Related journeys

Trading without required approvals: what to do now

Getting approved to trade: complete pre-trading journey