Business & licensing
Business in London
Start a company, understand the business rates your borough collects, find support to grow, and take on apprentices. This page points you to the official routes for running a business in the capital.
Ref · LDN-BIZ · Updated 2026-07-19
London is home to hundreds of thousands of businesses, from sole traders working from a kitchen table to companies headquartered in the City. Whatever stage you are at, the paperwork is handled by a handful of official bodies: HMRC and Companies House for registration and tax, your borough council for business rates and local licences, and the Mayor of London's growth agency for support. This page gathers the common tasks and links each one to the service that actually does the work.
Starting a business
How you set up depends on how you want to trade. As a sole trader you keep things simple but are personally responsible for the business — you register for Self Assessment with HMRC and pay tax on your profits. A limited company is a separate legal entity you register with Companies House, with its own responsibilities for accounts and Corporation Tax. A partnership sits between the two. GOV.UK's guide to setting up a business walks you through which structure fits, how to register, and what records you must keep.
- Decide your structure — sole trader, partnership or limited company.
- Register with HMRC (sole trader) or Companies House (limited company).
- Check whether you need any licences or permits for your trade.
- Set up records for income, expenses and tax from day one.
Business rates
Business rates are the tax on most non-domestic property — shops, offices, pubs, warehouses and factories. The amount is worked out from the rateable value set by the Valuation Office Agency and a national multiplier, but the bill is issued and collected by your borough council. That is also who you contact about paying, and who administers any relief you are entitled to. If you run a business from home, you may still owe business rates on the part used for the business.
- Rateable value — set by the Valuation Office Agency
- Your bill — issued and collected by your borough council
- Relief — small business, retail/hospitality/leisure or charitable, via your council
Small business rate relief
If your property has a low rateable value you may pay reduced business rates, or nothing at all. Relief is applied by your borough council — check the GOV.UK guidance, then apply through the council.
Support and growth
You do not have to grow alone. London & Partners, the Mayor of London's official growth agency, runs grow.london — a programme of guidance, events and connections for companies scaling in the capital, from early-stage founders to established firms expanding into new markets. GOV.UK's business support finder lists national schemes, grants and loans, and many boroughs run their own business teams, enterprise hubs and networking events for local traders.
Apprenticeships for employers
Taking on an apprentice brings new skills into your business while someone earns and learns on the job. Through the GOV.UK apprenticeships service, employers can find training providers, advertise vacancies and access funding towards the cost of training. Apprenticeships are open to new recruits and to existing staff of any age who want to build their skills, which makes them a practical route to develop your team.
Keep your details up to date
Tell HMRC and Companies House promptly if your business address, structure or ownership changes. Filing late or missing deadlines can lead to penalties.
Note: This portal links to official government services. government.london does not register companies, collect rates or take applications.
Common questions
Do I need to register my business straight away?
It depends on how you trade. If you work for yourself as a sole trader you must register for Self Assessment with HMRC. If you set up a limited company you must register it with Companies House. GOV.UK's step-by-step guide to setting up a business walks you through which route applies to you.
Who do I pay business rates to in London?
Business rates are collected by your local borough council, even though the amount is based on a national multiplier and the rateable value set by the Valuation Office Agency. You pay the council for the borough where your property is located, and the council also administers any relief you are entitled to.
Can I get relief on my business rates?
You may qualify for relief such as small business rate relief, retail, hospitality and leisure relief, or charitable relief. Relief is applied by your borough council. Check the GOV.UK guidance on business rates relief and then apply through your council, which administers the scheme.
Where can London businesses get support to grow?
London & Partners runs grow.london, the Mayor of London's official business growth programme, which offers guidance, events and connections for companies scaling in the capital. GOV.UK's business support finder and your borough's business team are also good starting points.
How do I take on an apprentice?
Employers can hire an apprentice through the GOV.UK apprenticeships service, which helps you find training providers, advertise the role and access funding towards training costs. Apprenticeships are open to new and existing staff of any age.
This is an information page. Registering, paying and applying all happen on the official government service.
Set up a business on GOV.UK →Do it now
The business tasks Londoners reach for most. Each one opens the official service.
Pay rates or apply for a licence?
Find your council
Business rates, street-trading permits, markets and premises licences are all handled by your borough. Enter a London postcode to reach the right one.
Opens the official GOV.UK council finder.