What Documents Do You Need as a Start-Up in London?

Day in, Day out, clients come to me who want to start a business in London. I know that starting a business in London is exciting, but it’s essential to have the right documents in place to ensure a smooth launch and compliance with UK regulations. Whether you’re going to be a sole trader, a partnership, or setting up a limited company, you are going to need all your paperwork in order. No doing so can cost you financially further down the line.

I've broken-down the key documents that every start-up in London should consider. Here they are:

1. The Business Plan

Probably the first document a lawyer can help you with is the big business plan.

We can help you to identifying the legal risks in your elected business model, your products, and even the services you are going to offer.

A well-thought-out business plan is going to get your ahead with investors; as well as being your road map to success. It's going to outline your business objectives, target market, revenue projections, and strategies.

Remember that many funding applications, including those with banks, require a robust business plan.

2. Articles of Association

If you've never heard of the Articles of Association then that's a problem. If you’re registering a limited company, the Articles of Association are going to set out the rules for running your company. These are typically submitted to Companies House during incorporation. You can adopt model article, but they are very generic. If you want protection; control down the line; have specific needs and priorities, as well as long-term goals, then you need bespoke articles to best protect your position.

3. Shareholder Agreement

For companies with multiple shareholders, a Shareholder Agreement is invaluable. It details how decisions are made, how shares are allocated or sold, and resolves potential disputes.

For example, you might want to include drag-along rights. Drag-along rights allow majority shareholders to "drag" minority shareholders into a sale of the company or their shares, ensuring that a buyer can acquire 100% of the company.

Conversely, if you are a minority shareholder then you might insist on tag-along rights. Tag-along rights give minority shareholders the right to "tag along" and sell their shares on the same terms as majority shareholders when the majority sell theirs. This saves minority shareholders being stuck having to deal with a new shareholder who they don't know and might not even like.

There are a ton of other clauses to consider, which is why you should probably speak to me at the start-up stage.

4. Employment Contracts

If you’re hiring staff, even in the early stages, you must provide written employment contracts that comply with section 1 of the Employment Rights Act - bet you didn't know that one! Amongst other things, these contracts should outline roles, responsibilities, and rights under UK employment law.

5. Non-Disclosure Agreement (NDA)

Don't let anyone steal your ideas. It's easy to get excited and the everyone all your plans but if you’re discussing sensitive information with potential partners, suppliers, or employees, an NDA protects your ideas and trade secrets. It’s a simple, and not very expensive, way to safeguard your business.

6. Terms and Conditions (T&Cs)

This can be a big item of work for your lawyers as getting clear and legally sound Terms and Conditions (T&Cs) in place is essential if you’re selling goods or services. They set out exactly what you’re going to do, how you’ll do it, and what’s expected from your clients or customers. This helps avoid misunderstandings and keeps everyone on the same page.

I always advise clients that T&Cs play a big role in protecting their business. They give clients the legal backing to handle claims against them or to take action if, for example, they don’t get paid. Because every business is different, there are lots of factors for me, as your lawyer, to consider when drafting them, but they’re worth the time and effort as they’ll form the foundation of how you operate.

7. Privacy Policy and GDPR Compliance

I always remind my clients that if their business handles personal data, they must have a privacy policy in place to comply with the General Data Protection Regulation (GDPR). Your privacy policy should clearly explain how you collect, use, and store personal data. It’s not just about compliance with UK data protection laws - it’s about building trust with your clients and customers by showing you take their privacy seriously.

8. Insurance Documentation

I advise all businesses to ensure they have the right insurance cover for their operations. From professional indemnity to public liability insurance, having appropriate cover is not only a legal requirement in some cases but also a practical way to protect your business. Where I add value is that I can help you understand your industry’s specific requirements and ensure you’re properly covered.

9. Licences and Permits

I have been a solicitor for a long time and I can tell you that I have seen licences and permits make or break businesses - depending on the sector. For example, if you’re in hospitality, you might need an alcohol licence, whereas businesses in construction may require environmental permits. I have worked with clients across many fields to identify and secure the necessary licences which ensures they are compliant and avoids delays or penalties.

10. Partnership or Operating Agreement

If you’re setting up a partnership, I cannot emphasise enough the importance of having a partnership or operating agreement. This document sets out what each partner contributes, how profits are shared, and what happens if there’s a disagreement. It’s essential for protecting everyone’s interests and ensuring your business runs smoothly, even in challenging times.

Why These Documents Matter

Some matter more than others, and not all start-ups want everything from day one. You have to consider your budgets. However, having these documents in place isn’t just about ticking boxes for legal compliance - it’s about building a strong foundation for your business to thrive. A professional and organised approach not only inspires confidence in investors, customers, and suppliers but also helps protect you from costly disputes down the line.

Starting a business is a big job, but with the right preparation, you can focus on what really matters: growth and innovation, without being sidetracked by avoidable issues.

If you’re unsure about what you need or want advice tailored to your business, I’m here to help. At Britton and Time Solicitors , we specialise in supporting start-ups in London, so don’t hesitate to get in touch.

Did I miss a Document?

What documents have you found invaluable in your start-up journey? Share your thoughts in the comments below.