UK Business Startup Cost Calculator

The cost varies enormously depending on the type of business. A home-based consultancy can be started for under £1,000, while a restaurant may require £50,000-£150,000. Common costs include company registration (£12-£50), insurance (£300-£2,000/year), a website (£500-£5,000), and marketing (£500-£5,000).

You can register a limited company with Companies House online for £12, which is the cheapest option. Same-day registration costs £30. You can also use a company formation agent (typically £30-£100) who will handle the paperwork and may provide a registered address. Sole trader registration is free through HMRC.

At minimum, if you have employees, you must have employers’ liability insurance (it is a legal requirement). Beyond that, public liability insurance is strongly recommended. Depending on your profession, professional indemnity insurance may be required. Product liability, business property, and cyber insurance are also common.

Common funding sources include: personal savings, the government-backed Start Up Loans scheme (up to £25,000 at 6% interest), business bank loans, angel investors, venture capital, crowdfunding, grants (Innovate UK, local authority), and friends and family. Most small businesses start with personal savings.

Limited companies must have a separate business bank account. Sole traders are not legally required to have one, but it is strongly recommended for keeping personal and business finances separate. Many banks offer free business banking for the first 12-18 months.

Start Up Loans is a government-backed personal loan for business purposes. You can borrow £500 to £25,000 at a fixed interest rate of 6% per year. You also receive 12 months of free mentoring. The scheme is available to UK residents aged 18+ who have been trading for less than 36 months.

A common rule of thumb is to spend 5-10% of your projected revenue on marketing in the first year, with a higher proportion in the initial launch period. For most small businesses, £500-£5,000 is a reasonable launch marketing budget. Focus on high-ROI channels first: Google My Business, social media, and local SEO.

Usually not, as long as your home remains primarily a residence. However, you may need planning permission if customers regularly visit, you employ staff at home, your business creates noise, smells or disturbance, or you significantly alter the property. Check with your local planning authority if in doubt.

You need: food business registration (free, with your local authority), food hygiene certificates (Level 2 minimum at £75), a premises license if serving alcohol (£100-£1,905 depending on rateable value), public liability insurance, and a fire safety risk assessment. You may also need music licensing and pavement licensing.

You can register a limited company in as little as 24 hours. However, getting fully operational takes longer: opening a business bank account (1-4 weeks), setting up insurance, finding premises, building a website, and meeting regulatory requirements can take 1-6 months. Plan for 3-6 months from idea to launch.