Setting up a Business in the UK: A Legal Checklist for Founders

Setting up a business in the UK? At Founders Law, we’ve worked with hundreds of founders and startups to get their legal foundations right from day one - without slowing down growth.

This UK startup legal checklist covers the essential steps to launch, protect and scale your business, backed by the commercial-first support of our experienced startup lawyers.

1. Business Incorporation

Registering your business with Companies House is your first legal step in starting a company in the UK. It makes your business a recognised legal entity and allows you to start trading. The process is quick, affordable and can be done entirely online.

Checklist:

• Register your UK company via Companies House
• Choose a company name and registered office address
• Decide your company structure (Ltd, LLP, etc.)
• Use either standard model articles or tailor them for your business

2. Founders & Shareholders

It’s essential to formalise ownership, roles and responsibilities early to avoid disputes and ensure investor readiness. Clear agreements help your UK startup stay investor-friendly and compliant.

Checklist:

• Sign a Co-Founders Agreement or Shareholders’ Agreement (SHA) to govern roles, decision-making and exits
• Allocate share capital and issue share certificates
• Put in place service or consultancy agreements for founders

3. Corporate Governance

Keeping on top of company records protects directors and ensures ongoing compliance with UK corporate law.

Checklist:

• Maintain board minutes, statutory registers and Companies House filings
• Record significant decisions and shareholder approvals
• Consider Directors & Officers (D&O) insurance to protect key decision-makers

4. Tax & HMRC Registration

Registering with HMRC and understanding your tax obligations early helps your business stay compliant and avoid penalties.

Checklist:

• Register for Corporation Tax within three months of starting to trade
• Set up a business bank account and accounting system
• Explore VAT registration and check whether you meet the current threshold (£90,000)
• Consider securing SEIS/EIS advance assurance if you’re raising investment from UK investors

5. Employment & Contractors

Getting contracts in place and understanding UK employment law protects both your company and your team.

Checklist:

• Use compliant employment contracts or consultancy agreements
• Check IR35 status for contractors to avoid tax surprises
• Create an employee handbook and workplace policies (e.g. leave, misconduct) — some are required by law
• Consider an employee option scheme (EMI or Growth Shares)
• Take out employers’ liability insurance, which is legally required as soon as you hire an employee

6. Data Protection & Privacy

If you collect personal data, you must comply with UK GDPR and data protection laws to avoid fines and build trust with customers.

Checklist:

• Register with the ICO (UK data protection regulator)
• Create a privacy policy and cookie banner for your website
• Add data protection clauses to customer, supplier and contractor contracts

7. Intellectual Property

Protecting your brand and intellectual property (IP) early is key to building long-term business value.

Checklist:

• Assign any IP created by founders or contractors to the company
• Register your brand trademark in the UK (and internationally if needed)
• Use NDAs before sharing sensitive ideas externally
• Clarify IP ownership between group companies

8. Intra-Group / Global Structure

If your UK entity is part of a global group, ensure clear agreements on ownership, rights, and cash flow.

Checklist:

• Decide which company owns the IP and contracts with clients
• Put intra-group service, IP, or cost-sharing agreements in place
• Ensure your structure aligns with transfer pricing and international tax requirements

9. Commercial Agreements

Well-drafted commercial contracts protect your revenue, limit liability and create a clear legal framework with customers and partners.

Checklist:

• Draft Terms of Business and website Terms & Conditions
• Put in place agreements with key suppliers
• Use tailored contracts for partnerships, resellers or affiliates

10. Regulatory & Sector-Specific Requirements

Certain industries — like fintech, insurance, and crypto — have specific UK regulatory obligations. Getting these right from the start helps you avoid compliance issues or enforcement action.

Checklist:

• Check if you need FCA registration or a relevant licence
• Obtain any industry-specific approvals or insurance
• Review your ongoing compliance obligations, especially around payments, data, or health

Build Your UK Business on Solid Legal Foundations

Whether you’re launching your first startup, registering a UK company from abroad, or expanding internationally, our team at Founders Law helps you get set up the right way... fast.

We combine legal precision with commercial know-how so you can focus on what matters most: growing your business.

📩 Drop us a line hello@founders-law.co.uk to discuss your UK business setup today.

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