Most healthcare providers operate as limited companies or CICs, though CQC registers individuals (sole traders), partnerships, and organisations.
Healthcare businesses: CQC registration required
If you provide regulated activities in England, you must register with the Care Quality Commission (CQC) before you start operating. Operating without registration is a criminal offence carrying unlimited fines and up to 12 months imprisonment.
Applies to: All providers of regulated health and social care activities in England
Official guidance (opens in a new tab)
Essential first step for healthcare providers in England. Understand what activities are regulated and the registration process.
Fit and Proper Person Requirements
Directors must meet the fit and proper persons requirement (Regulation 5), organisations must have a nominated individual (Regulation 6 - this applies to bodies other than individuals and partnerships), and every registered manager must satisfy Regulation 7. This includes criminal record checks, competency assessments, and character references.
Applies to: Directors, managers, and nominated individuals of CQC-registered providers
Official guidance (opens in a new tab)
DBS checks for all healthcare staff
Anyone working in regulated activities must have an Enhanced DBS check with barred list checks . This applies to directors, managers, care staff, clinical staff, and anyone with regular unsupervised access to service users. There is no fixed legal period for rechecks - set a recheck policy or use the DBS Update Service for ongoing status checks.
Applies to: All staff in regulated healthcare activities
Official guidance (opens in a new tab)
Understand DBS check requirements, how to apply, and using the Update Service for continuous monitoring.
Business structure for healthcare providers
Limited companies are the standard structure for CQC-registered providers. Community Interest Companies (CICs) are popular for social care organisations with a social mission. CQC registers individuals (sole traders), partnerships, and organisations, so your choice of structure is a commercial decision rather than a registration barrier.
Sole trader
Simplest to set up. You keep all profits but are personally liable for debts.
Partnership
Share responsibilities and profits. Partners share liability for business debts.
Limited company
Separate legal entity. Personal liability limited to investment, but more admin.
LLP
Partnership with limited liability. Must file accounts at Companies House.
Business structure affects tax liability, personal liability, and required paperwork. Professional advice is recommended when choosing the right structure.
Register your company with Companies House before applying for CQC registration.
Professional indemnity and liability insurance
Healthcare providers need professional indemnity insurance, employers' liability insurance (if you have staff), and public liability insurance. Clinical practitioners also need clinical negligence cover. Insurance is typically required as part of CQC registration.
Applies to: All healthcare providers
Official guidance (opens in a new tab)
Start with the insurance the law requires: if you employ anyone, you must have employers' liability insurance with at least £5 million cover, and business vehicles need motor insurance.
CQC inspection and ratings
Once registered, CQC will inspect and rate your service. Ratings (Outstanding, Good, Requires Improvement, Inadequate) must be displayed prominently. You must display your rating within 21 calendar days of it being published - failure to display is an offence punishable by a fine.
Applies to: All CQC-registered providers
Official guidance (opens in a new tab)
Understand how CQC inspects services, what ratings mean, and your obligations after inspection.
Required before hiring your first employee. Set up payroll and register as an employer with HMRC.
Every employer in Great Britain must ensure, so far as is reasonably practicable, the health, safety and welfare at work of its employees, and must not put other people at risk.
Healthcare businesses process sensitive special category data and must have robust GDPR compliance.