Written by Fraz Butt, Senior Director · SRA-regulated · Last reviewed 8 September 2026
Starting a business in the UK properly means covering, at minimum, choosing the right structure, registering with Companies House and HMRC, agreeing ownership through a shareholders or founders agreement if there is more than one of you, protecting your intellectual property, and having proper contracts before you start trading. Missing any of these steps in the early days is one of the most common reasons founders run into avoidable disputes later. This guide walks through each item in order, so you can start your business on a solid footing.
Prefer to speak to someone now? Call our team on +44 (0)20 3588 3500, or press the Enquire button at the top of this page and we will call you back.
Step One: Choose Your Business Structure
Before you register anything, decide whether you will trade as a sole trader, a partnership or a limited company. This affects your personal liability, how you are taxed, and how easily you can bring in investors or co-founders later.
We cover the detail of this decision, including when each structure makes sense, in our guide on choosing a business structure.
Related reading: choosing a business structure.
Step Two: Register the Company Correctly
If you choose a limited company, registration at Companies House takes only a few minutes online, but the choices you make at this stage, including share classes, the number of shares issued and who is appointed as a director, set the framework for everything that follows.
It is worth taking advice before registering if there is more than one founder, since the default articles of association rarely reflect how founders actually want decisions to be made.
Step Three: Put a Shareholders or Founders Agreement in Place
If you are starting the business with anyone else, this is not optional. A shareholders agreement, and often a founders agreement alongside it, sets out ownership, decision making, and what happens if a founder wants to leave or is not performing.
We explain what these documents should cover in our guides on shareholders agreements and founders agreements.
Related reading: shareholders agreements, founders agreements.
Step Four: Protect Your Intellectual Property and Confidential Information
Your brand name, logo, product design and any proprietary technology or processes are often the most valuable assets a young business has. Consider trade mark registration, and make sure that any contractor or freelancer working on your product or brand has signed an agreement that assigns intellectual property rights to the company, not to them personally.
This is frequently overlooked until an investor asks about it during due diligence, by which point it can be expensive and time consuming to fix. Our guide on protecting your intellectual property sets out how to register a trademark and protect your brand properly.
Related reading: protecting your intellectual property.
Step Five: Have Proper Contracts Before You Trade
Before you take your first customer or engage your first supplier, make sure you have terms that reflect how your business actually operates, rather than a generic template found online. This includes payment terms, liability limits, and what happens if either party wants to end the arrangement.
Our guides on the clauses that matter most in commercial contracts, and on the risks of generic terms and conditions, cover this in more depth.
Related reading: commercial contract clauses, business terms and conditions.
Step Six: Get Compliance and Registrations Right
Depending on your sector, you may need to register for VAT, PAYE, data protection with the Information Commissioner’s Office, and any sector specific licences. Missing a registration deadline can result in penalties, and in some cases, in personal liability for directors.
Step Seven: Plan for Your First Hire Before You Need To
Even if you are not hiring yet, it is worth understanding the legal obligations that come with taking on staff, including contracts of employment, pension auto enrolment and workplace policies, so that you are ready when the time comes. Our guide on employment contracts for first hires sets this out in full.
Related reading: employment contracts for first hires.
Have a question about your specific situation? Call us on +44 (0)20 3588 3500 or press Enquire at the top of this page, our team responds quickly.
Frequently Asked Questions / Questions & Answers
What legal documents do I need to start a business in the UK?
At a minimum, most founders need articles of association, a shareholders or founders agreement if there is more than one founder, terms and conditions for trading, and any contracts with employees or contractors. The exact list depends on the nature of the business.
Do I need legal advice to register a limited company?
You can register a company at Companies House without any help, but if there is more than one founder, or you plan to raise investment, advice on the shareholder arrangements and articles of association before you register can prevent significant problems later.
How long does it take to legally set up a business in the UK?
Registering a company can take as little as 24 hours, but putting proper shareholder agreements, contracts and compliance in place typically takes one to a few weeks, depending on the complexity of the business and the number of founders.
What happens if I do not have a shareholders agreement?
Without one, disputes between founders are resolved by the default provisions in the Companies Act and the company’s articles, which rarely reflect what the founders actually intended and can make resolving disagreements slow and expensive.
Is it expensive to get things right when starting a business?
Costs are generally modest compared to the cost of resolving a dispute or fixing a badly drafted contract later. Saracens Solicitors offers fixed fees for many startup services, including shareholder agreements and terms and conditions.
Speak to Saracens Solicitors
For tailored advice on starting your business the right way, speak to our Corporate Law team.
Visit our Corporate Law service page or call us on +44 (0)20 3588 3500 to arrange a consultation.
Saracens Solicitors, Thanet House, 231 to 232 Strand, London, WC2R 1DA.
