Start a Business in the UK

How to Start a Business in the UK: 2026 Guide for Migrants and New Entrepreneurs

Last policy check: 31 August 2026

This practical guide explains the main steps for starting a small business in the UK. Your immigration status may affect whether you can be self-employed, become a company director or work for your own business. Check your conditions before trading. EasyStepUK provides general information and signposting only; we do not provide immigration, legal, tax or financial advice.

Quick checklist

1. Confirm that your immigration status allows the planned business activity.

2. Research customers, competitors, pricing and start-up costs.

3. Choose a structure: sole trader, limited company or partnership.

4. Register with HMRC or Companies House as required.

5. Check licences, insurance, tax and data-protection duties.

6. Open suitable financial records and keep evidence of income and expenses.

7. Test the idea before committing to large costs.

1. Check your right to run a business

Not every immigration route permits the same work or self-employment. Check your visa or immigration conditions using official GOV.UK guidance. The Start-up visa is closed to new applications. The Innovator Founder visa may be available for people establishing an innovative, viable and scalable business that is endorsed by an approved body; it is not a general visa for any ordinary small business.

Start-up visa status:

https://www.gov.uk/start-up-visa

Innovator Founder visa:

https://www.gov.uk/innovator-founder-visa

For advice about individual immigration circumstances, use an IAA-regulated immigration adviser or a qualified solicitor.

2. Choose a business structure

Sole trader

A sole trader owns and runs the business personally. The setup is relatively simple, but the owner is personally responsible for business debts. You normally register through Self Assessment. GOV.UK says you must register as a sole trader if you earn more than £1,000 in a tax year, or in certain other circumstances.

Official guidance:

https://www.gov.uk/become-sole-trader

Limited company

A limited company is legally separate from its owners. It has filing, accounting and director responsibilities. From 1 February 2026, Companies House charges £100 for standard online incorporation and £124 for a paper application. Fees can change, so check the current list immediately before applying.

Register a company:

https://www.gov.uk/limited-company-formation/register-your-company

Current Companies House fees:

https://www.gov.uk/government/publications/companies-house-fees/companies-house-fees

Partnership

In a standard business partnership, partners personally share responsibility for losses and bills, and each partner pays tax on their share of profits. Different rules apply to limited partnerships and limited liability partnerships.

Official guidance:

https://www.gov.uk/set-up-business-partnership

Do not choose a structure solely because it appears cheaper or easier. Consider liability, tax, reporting duties, funding plans and the nature of the work. An accountant or business adviser can help compare the options.

3. Write a short business plan

A useful first plan should cover:

• the customer problem you will solve

• the product or service

• target customers and competitors

• pricing and expected sales

• start-up and monthly costs

• licences, insurance and other risks

• marketing and sales channels

• a 12-month cash-flow forecast

Test demand with a small pilot, customer interviews or pre-orders before signing a long lease or buying expensive equipment.

4. Register for tax and keep records

Sole traders and partnerships normally deal with HMRC through Self Assessment. Limited companies have separate company and Corporation Tax responsibilities.

VAT registration is generally compulsory when taxable turnover for the previous 12 months exceeds £90,000, or when you expect taxable turnover to exceed £90,000 in the next 30 days. Different rules can apply to businesses based outside the UK and to particular transactions. The £90,000 threshold applies for the 2026–27 tax year but should always be checked before relying on it.

VAT guidance:

https://www.gov.uk/register-for-vat

Keep accurate invoices, receipts, bank records and evidence of expenses. Use a separate business bank account where required or helpful, and protect access with strong security.

5. Check licences, insurance and data protection

Requirements depend on the activity and location. Food businesses, childcare, alcohol sales, street trading, transport, recruitment and some home-based activities may need registration, licences or additional checks.

Licence finder:

https://www.gov.uk/licence-finder

If you become an employer, Employers’ Liability insurance is generally required and must normally cover at least £5 million. Public liability and professional indemnity insurance are not automatically required for every business, but may be appropriate or contractually required.

Employers’ Liability guidance:

https://www.gov.uk/employers-liability-insurance

If the business collects or uses personal data, check obligations with the Information Commissioner’s Office:

https://ico.org.uk/for-organisations/advice-for-small-organisations/

6. Find funding and local support

Possible sources include personal savings, responsible borrowing, local authority programmes, grants and the government-backed Start Up Loans programme. Funding is not guaranteed and borrowing creates repayment obligations.

Government business support:

https://www.gov.uk/business-finance-support

Start Up Loans:

https://www.startuploans.co.uk/

Check the terms, total repayment cost and eligibility before accepting finance. Be cautious about companies promising guaranteed grants, visas or investment.

7. Launch carefully

Before taking payment, confirm that registrations, licences, insurance, tax records, contracts and privacy information are ready. Start with measurable goals, review cash flow regularly and change the plan when evidence shows that customers need something different.

EasyStepUK support

EasyStepUK helps migrants and local residents build confidence, skills and community connections. We can provide general business-start-up workshops, digital skills activities and signposting to official or regulated support. We do not make immigration decisions, provide regulated immigration advice, prepare legal documents or replace an accountant.

Information checked against official sources on 31 August 2026. Rules, fees and thresholds can change; always check the linked official pages before acting.