Starting a Business in Simple Steps

Starting a business in the UK is more straightforward than most people expect. From validating your idea to registering with Companies House and setting up your finances, the core process follows a clear sequence. This guide breaks it down into practical, manageable steps, so you know exactly what to do and in what order.

Business start up admin is broken

Most people who put off starting a business aren't short on money or skills. They're put off by the admin, the forms, the jargon, the waiting for someone to get back to you. That feeling is real. It's a system built for a different era, one with fax machines and filing cabinets, still asking today's founders to jump through yesterday's hoops.

Registering a company shouldn't take longer than deciding to do it. Sorting a bank account, your accounting software, your tax registrations - none of it should eat your first fortnight. It does, for most people, because nobody's put it in the right order and handed them the right tools at the right time. That's the bit FOUNDRS fixes.

What actually takes time (and should) is the work itself: finding clients, delivering your service, building a reputation. The admin is just the start. Here's how the start-up steps breaks down.

1. Validate your idea before you spend anything

Before you register a company or spend a penny on branding, talk to people who might actually pay for what you're offering. This doesn't need to be a formal research process - ten honest conversations with potential customers will tell you more than a hundred hours at a desk.

Ask: Would you pay for this? What would you pay? Who else would you consider? What's missing from what's already out there? You're looking for a credible answer to one question: does this exist because there's demand, or because you want it to exist?

2. Choose your business structure

For most people, it's a choice between operating as a sole trader or registering a private limited company. A sole trader is simpler, but you're personally liable for all business debts. A limited company gives you liability protection and is usually more tax-efficient once your profit passes roughly £30,000–£40,000 a year.

If you're planning to grow, bring in co-founders or investors, or work with corporate clients, a limited company is usually the right call from day one.

Read more

Private vs Public Limited vs Sole Trader: Which Business Structure Is Right for You?

3. Choose and check your company name

Your company name needs to be unique - check availability on the Companies House name checker. It can't be the same as, or too close to, an existing registered company, and some words need permission ("Royal", "Bank", "Insurance", and so on). Check your domain name and social handles are free too, while you're at it.

4. Register your company at Companies House

You can register a limited company yourself through the Companies House online portal for £100. You'll need: your company name, a registered office address, at least one director's details, and your shareholders and share structure.

Or let FOUNDRS handle it. We file it for you, pull the right details into the right boxes, and flag anything you're missing before it becomes a problem - so you're not the one decoding what Companies House actually wants.

Registration usually completes within 24 hours online. You'll get a Certificate of Incorporation, a company registration number, and your incorporation date, which matters for your tax deadlines.

One thing that's changed: since November 2025, Companies House requires identity verification for directors and people with significant control.

5. Register for Corporation Tax

Within three months of starting to trade, you must register with HMRC for Corporation Tax, via the Government Gateway. You'll need your company registration number, your start-of-trading date, and your accounting period (usually 12 months from incorporation).

HMRC posts your Unique Taxpayer Reference (UTR) within ten working days of registration. Store it within FOUNDRS so you don't lose it, remember you'll need it every time you deal with HMRC.

Read more

Corporation Tax Explained for Limited Companies

6. Open a business bank account

As a limited company director, you're legally required to keep company and personal finances separate. For ease that means a business bank account in your company's name. Many UK banks offer free business accounts for the first 12–24 months - Starling, Monzo Business, Tide, Lloyds, Barclays and HSBC all have options worth comparing.

You'll need your company registration number, Certificate of Incorporation, and proof of your own identity to apply. Most digital banks can approve applications within a few days.

Read more

Do You Really Need a Business Bank Account?

7. Set up accounting software

From the moment you trade, you need records of your income, expenses, and VAT if it applies. Cloud accounting software makes this manageable even with zero accounting background. Xero, QuickBooks and FreeAgent are the popular options, with entry-level plans starting from around £16 a month. Most link directly to your business bank account and categorise transactions automatically.

Set this up from day one rather than trying to reconstruct your records months later - it saves real time and money.

Read more

Accounting Software vs Hiring an Accountant: Which Do You Need?

8. Consider whether you need to register for VAT

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this, which can work in your favour if you deal with VAT registered businesses, since you can reclaim VAT on your own purchases.

Read more

What Is VAT and Do I Need to Register?

9. Sort your registered address and people with significant control (PSC)

Your company needs a registered address at Companies House. This is where official correspondence gets sent. It doesn't have to be where you actually work. Many founders use a registered office service or their accountant's address - FOUNDRS offers this alongside a digital mailbox

You'll also need to keep a register of People with Significant Control (PSCs) - anyone who owns more than 25% of the company, controls more than 25% of voting rights, or can appoint or remove a majority of directors. It's a legal requirement, and it needs to stay current.

10. Consider insurance

Depending on what you do, you may need cover from day one. Professional indemnity insurance is essential if you give advice or deliver professional services. Employers' liability insurance is a legal requirement the moment you take on your first member of staff. Public liability insurance is worth having if clients visit your premises, or you visit theirs.

What are your ongoing obligations as a company director?

Once you're set up, these obligations recur - you'll get timely reminders from FOUNDRS for each