Legal documents you need when starting a UK business

Your first customer, a new website or a freelancer helping with your launch can all create legal responsibilities before you have a team or much revenue.

The right documents help you make clear what you have agreed, protect the work you are building and meet the obligations that apply to your business. You do not need every agreement on day one. Start with what you are doing now, then review your paperwork as the business changes.

This guide covers the main documents for a new UK business, with particular attention to small limited companies and solo founders.

Start with the next step your business is taking

Think about the activity you are about to carry out. Forming a company needs different paperwork from hiring someone or taking your first online order.

Some of these are legal requirements. Others are practical protections that become valuable when a relationship changes. The sections below explain what each document does, when you might need it and what it should cover.

Your company formation documents

If you are setting up a company limited by shares, the formation process includes a memorandum of association, articles of association and a statement of capital. The memorandum records the initial shareholders' agreement to form the company. For online registration through FOUNDRS, it is created automatically. The articles set the rules for running the company, while the statement of capital records the shares and their rights.

You can use standard model articles or arrange bespoke articles. For a straightforward company, model articles may be suitable. If you want different share rights or a more complex ownership arrangement, get advice before registering.

After incorporation, keep your certificate and formation documents somewhere you can find them. You may need them when opening accounts, checking ownership or preparing for investment.

For the registration process, read how to register a limited company in the UK. Our guide to statutory registers and company records explains what to maintain afterwards.

Customer contracts and terms of sale

Before you accept an order or start work, make sure both sides understand what they are agreeing to.

For a service business, this might be a client agreement supported by a proposal or statement of work. A retailer may use terms of sale in its checkout. A subscription business will need terms that explain the ongoing service and how customers can end it. Useful questions to answer include:

• What exactly is included, and what costs extra?

• How much will the customer pay, and when?

• What do you need from them to deliver the work?

• What happens if the scope or timetable changes?

• Who can use or own anything created?

• How can either side end the arrangement?

For example, a fixed-price website project should explain how many pages and revision rounds are included. That gives you a basis for agreeing an extra fee when a customer asks for more.

Make the terms available before the agreement is made, and keep a record of acceptance. Sending them for the first time with the invoice can leave you arguing about whether they were agreed.

If you sell to consumers online or at a distance, additional information and cancellation rules can apply. Terms must reflect the relevant consumer rights; a blanket statement that you never offer refunds will not remove those rights.

Privacy information and website documents

If you collect names, email addresses, customer details or other personal information, you need to explain how you use it. This can apply to a solo business with a contact form just as it does to a larger company.

A privacy notice should cover who you are, why you use personal data, your lawful bases, who you share it with, retention periods and people's relevant rights. Include information about international transfers where applicable and how to complain to the ICO.

Write it around your actual systems. For example, enquiries may pass through your website, email account and customer management software. A notice copied from another business may describe tools or practices you do not use.

Website terms serve a different purpose. They can explain permitted use of your site, accounts or uploaded content. They do not automatically replace the customer contract for a paid service.

Cookies and similar technologies need their own review. Explain their use and obtain consent before using technologies that require it. Some exceptions apply, subject to conditions. A policy alone does not make your tracking setup compliant.

Read website privacy policies, terms and cookies for a closer look.

Freelancer and supplier agreements

A solo founder can still depend on other people to build a product, design a brand or deliver customer work. Agree the arrangement before they start. Your agreement should set out the deliverables, fees, timetable, approval process and what happens if the work stops early. Include confidentiality and access arrangements where someone will work with sensitive information or company systems.

Pay particular attention to intellectual property. Under UK copyright rules, a freelancer or other commissioned creator will generally own the copyright initially unless you agree otherwise in writing. Paying for a logo or website does not automatically transfer copyright to your company.

Decide whether you need ownership transferred or a licence to use the work. Also identify any existing materials, software or third-party assets that are excluded from a transfer or come with separate licence conditions.

Shareholders and founder agreements

For a company with multiple owners, an agreement can help you work through decisions that are easy to overlook at the start: who needs to approve major spending, whether someone can sell their shares, and what happens if a founder stops working in the business.

Consider what happens if two equal shareholders disagree. An ownership split alone does not give you a workable process for resolving a deadlock.

If shares are linked to continued involvement, get advice on any vesting or leaver provisions. These can have significant consequences for ownership and tax. The agreement also needs to work with the company's articles.

A shareholders' agreement is not generally a legal requirement for a UK private company. Its value is in agreeing the rules while everyone is willing to discuss them.

Read what a shareholders' agreement is and why you might need one.

Employment paperwork

Hiring your first employee brings obligations beyond agreeing a salary. Prepare the paperwork before their start date.

In Great Britain, employees and workers must receive a principal written statement of employment particulars on their first day. Further required information must be provided within two months. The written statement is a specific legal requirement and is not the same thing as the whole employment contract. Northern Ireland has separate employment rules.

The paperwork should clearly cover the role, pay, hours, workplace, holiday, notice and other required terms. Confidentiality and intellectual property provisions may also matter for the role.

Do not assume that calling someone a contractor settles their employment or tax status. Check the working arrangement as well as the wording of the agreement.

Before hiring, also review PAYE registration and the other employer obligations that apply to your business.

Confidentiality agreements when you need them

A non-disclosure agreement, or NDA, can be useful before sharing genuinely confidential information with a potential collaborator or supplier.

Be specific about the information being protected and the purpose for which it can be used. Your existing supplier or employment agreement may already cover confidentiality, so check what is in place first.

An NDA does not transfer ownership of intellectual property. It also cannot replace sensible access controls. Share only what the other person needs, and check whether you need advice before disclosing an invention that could be patentable.

Keep the documents useful as your business grows

Store signed agreements alongside their schedules and any agreed changes. Keep a clear record of which version applies, who signed it and any dates you need to act on, such as a renewal or notice deadline.

Review your documents when something changes: a new service, a different type of customer, a shareholder joining or your first hire. A template can help you identify the questions to answer, but the final wording needs to fit your business. Get professional advice where ownership, significant liability, employment or a complex arrangement is involved.

Start and manage your company with FOUNDRS

FOUNDRS helps you form a UK limited company and organise the admin that follows, including document storage and company compliance reminders.

Use our company formation service to get started, or explore the Compliance Assistant to understand the obligations that come next.

This guide provides general information. The documents and legal advice you need will depend on your business and where it operates.