Updated: April 2026 • Based on UK Law

What Is a Business Setup Checklist?

A business setup checklist is a step-by-step guide covering everything you need to legally start a UK business — choosing your structure, registering with HMRC and Companies House, tax obligations, insurance, GDPR, contracts, and ongoing compliance. It turns a confusing process into a clear sequence.

This guide explains what you need to do, in what order, and how our free interactive checklist walks you through every step.

Over 600,000 new companies are registered at Companies House every year.

Most of the founders behind them have the same question: what do I actually need to do first?

We built a free tool that answers it.

✓ Free Business Setup Legal Checklist — No Payment Required

Interactive checklist covering registrations, contracts, policies, insurance, tax, GDPR, and compliance — everything you need from scratch. Tick off each step as you go.

→ Start the Free Checklist Now

Why Sequence Matters More Than Knowledge

Most new business owners know roughly what they need to do.

The problem is doing it in the wrong order.

Register for VAT before you’ve chosen your structure? You’ve locked yourself into obligations that might not suit you.

Start trading before registering for Corporation Tax? HMRC gives you 3 months — and most people don’t realise the clock has already started.

Hire your first employee without employers’ liability insurance? That’s a fine of up to £2,500 per day.

The checklist puts every step in the right sequence — so nothing gets missed and nothing happens out of order.

What the Free Checklist Covers

The free interactive checklist walks you through every legal requirement for starting a UK business:

Structure and registration:

    • Choosing between sole trader, partnership, LLP, or limited company
    • Registering with HMRC (Self Assessment or Corporation Tax)
    • Registering with Companies House (limited companies and LLPs)
    • Deadlines for each — and what happens if you miss them

Contracts and legal documents:

    • Business Plan — essential for funding applications and strategic clarity

Tax and financial obligations:

    • Corporation Tax registration (3-month deadline from starting business activities)
    • VAT registration (mandatory at £90,000 turnover — 30-day window)
    • Making Tax Digital requirements from April 2026
    • Opening a business bank account

Insurance:

    • Employers’ liability (legally mandatory with staff — minimum £5 million cover)
    • Public liability, professional indemnity, and cyber liability

Employment:

    • PAYE registration before your first payday
    • Written employment contracts (day-one statements required)
    • Auto-enrolment pension duties
    • IR35 considerations for contractors

Compliance:

    • GDPR and ICO registration (£40–60/year for most businesses)
    • Health and safety obligations
    • Industry-specific licences

Every item links to the relevant government resource or template so you can act on it immediately.

FREE Business Setup Checklist

Registration, Tax, Insurance & Legal Obligations — Everything Before You Trade

Access Free Checklist
Interactive • Saves Progress • PDF Download • Always Free

What Makes This Checklist Different

Most “business setup guides” give you a wall of text and leave you to figure out the sequence yourself.

This is interactive. You tick off each step as you complete it.

It’s structured in the order things actually need to happen.

Not alphabetically. Not randomly. In the sequence that avoids penalties and missed deadlines.

And it’s completely free. No account. No email. No trial. No catch.

We built it because the question “what do I need to do to set up a business in the UK?” deserves a clear answer.

One that doesn’t end with a subscription page.

The Mistakes the Checklist Prevents

Missing the Corporation Tax deadline.

Companies House notifies HMRC when you incorporate — but that is not the same as registering for Corporation Tax.

You must do it separately within 3 months of starting business activities.

Many new directors don’t realise until the penalty arrives.

Trading without employers’ liability insurance.

If you hire even one employee — including a part-time administrator — you need employers’ liability insurance from day one.

The fine is up to £2,500 for every day you’re uninsured.

Ignoring GDPR.

If you collect a customer’s name and email address, you’re processing personal data.

GDPR applies from day one. The ICO can fine up to £17.5 million for serious breaches.

No partnership agreement.

Without a written partnership agreement, the Partnership Act 1890 applies by default.

That means profits are split equally — regardless of who does the work or put up the capital.

Using default Articles of Association without reading them.

Companies House provides Model Articles — but they may not suit your situation.

Custom Articles of Association let you define director powers, shareholder rights, and decision-making rules that match how your business actually works.

→ Start the Free Business Setup Checklist

Every registration, contract, policy, and compliance requirement — in order, with links. No payment needed.

When You Need More Than a Checklist

The checklist tells you what to do. The templates help you do it.

If you need the actual legal documents — partnership agreements, shareholders agreements, articles of association, employment contracts, or privacy policies — our templates start from £10.

Each one is structured following UK law.

Available in both Interview mode (guided questions) and Editor mode (all fields at once). Preview in full before you pay anything.

For the complete picture — structures, costs, HMRC, IR35, GDPR, insurance, and employment law — see our How to Set Up a Business in the UK — Complete Legal Guide.

Or go straight to the templates:

Free lifetime updates — we monitor UK law changes and updated versions appear free in your My Templates page.

Frequently Asked Questions

Is the checklist really free?

Yes. No account, no email, no payment, no trial.

We built it as a free resource because everyone starting a business deserves a clear starting point.

Do I need all the documents listed?

It depends on your structure.

A sole trader needs far less than a limited company with shareholders. The checklist highlights which items apply to which structure.

How long does it take to set up a UK business?

Sole trader registration takes about an hour online (free).

Limited company registration takes 2–3 hours and costs £50. Certificate of Incorporation usually arrives within 24 hours.

What’s the first thing I should do?

Choose your business structure.

Everything else — registration, tax, insurance, contracts — depends on that choice.

The checklist starts here.

Can I start trading before I’ve registered?

Sole traders can start trading and register later (by 5 October of the following tax year).

Limited companies must register with Companies House before trading.

Then register for Corporation Tax within 3 months of starting business activities.

The Truth About “Free” Legal Template Sites (What You’re Really Signing Up For)

Most websites offering a “free legal template” follow the same pattern:

    • You click because it’s advertised as free
    • You spend 10–15 minutes answering questions
    • At the very end, you must create an account or start a “free trial”
    • Your card is required upfront
    • The subscription auto-renews at £29–£39 per month

This isn’t a free template – it’s a subscription service. Many people only realise after being charged £300–£400 over the year.

Our business setup checklist is genuinely free. No account. No card. No trial. No catch.

If you need the actual legal documents, our paid templates start from £10.

But the checklist itself costs nothing — and always will.

My Templates Dashboard

All purchased templates are stored in your personal My Templates page, organised by category.

When we update a template for UK law changes, the new version appears automatically in your dashboard — free, forever.

Build a growing library of UK legal documents across every area of your business and personal life.

Transparent Pricing

From £10 per template — with free lifetime usage and free lifetime updates. No subscriptions. No renewals. No auto-billing.

Not ready to buy? Use our free interactive checklists to guide your own document — no payment required.

No tricks. No trials. No hidden fees. Just the exact UK-specific legal document you came for — at the price we told you upfront.

Start with the free business setup checklist — no payment needed, ever.

Get Every Template in One Bundle

The UK Legal Templates Ultimate Bundle includes 91 templates across every category — one purchase, lifetime updates, no subscriptions.

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Explore the Master Business Legal Templates Pillar Guide

The complete overview of 37 essential UK business templates.

UK Business Legal Templates — Complete Master Guide

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Related Guides

Free Legal Templates & Interactive Checklists

Access all our free UK legal templates, checklists and downloadable PDFs.

Browse Free Templates →

FREE Business Setup Checklist

Registration, Tax, Insurance & Legal Obligations — Everything Before You Trade

Access Free Checklist
Interactive • Saves Progress • PDF Download • Always Free

Last updated: April 2026

Disclaimer: This guide provides general UK legal information, not legal advice. Laws are current as of April 2026.