BUSINESS & MONEY
Starting a business in London: structure, registration and first controls
A strong start separates the commercial idea from the legal, tax and cash controls needed to operate it safely in London.
- Decision points
- 6 useful sections
- Reading time
- 1 minutes
- Source checks
- 1 named checkpoint
- Last reviewed
- 4 SEPTEMBER 2026
Test the customer problem first
Define who pays, what problem is solved and why the offer is different enough to earn attention. Speak to potential customers and price the delivery before committing to a lease, large stock order or expensive brand package.
Choose the legal structure deliberately
Sole trader, partnership and limited company structures have different responsibilities, reporting and liability. Do not choose only because one is easy to register. Consider ownership, risk, tax administration and how money will be taken from the business.
Register through official routes
Use GOV.UK to identify registrations for the chosen structure, tax position and any employer responsibilities. A trading name, web domain or social profile does not itself create a company or grant permission to use regulated words.
Check London-specific operations
Premises, street trading, food activity, alcohol, music, signage and some services can require borough or sector permissions. Identify the exact local authority and regulated activity before signing a long commitment. Planning permission and a business licence are not interchangeable.
Build the money system early
Separate business and personal records, issue clear invoices, track costs and reserve cash for tax. Understand VAT registration rules and dates before turnover approaches a threshold. Cash in the account is not automatically profit available to spend.
Protect trust and data
Use written terms, appropriate insurance and secure payment methods. If customer or employee data is processed, understand the relevant data-protection responsibilities. Review contracts before promising refunds, subscriptions, delivery times or intellectual-property ownership.
