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New business formation in Aberdeen sits within the broader framework of United Kingdom law, with additional features specific to Scotland and local requirements administered by Aberdeen City Council. Most company law is UK wide, principally under the Companies Act 2006, and businesses register with Companies House. In Scotland, certain matters such as partnership law, property law, licensing, and local planning are governed by Scots law and local regulation. Choosing a structure, registering the business, meeting tax obligations, and securing any sector specific permissions are the core steps for getting started.
Aberdeen has a diverse economy that includes energy, engineering, technology, food and drink, tourism, and professional services. Depending on your sector you may need to comply with extra rules such as food hygiene registration, alcohol licensing, environmental permits, or professional regulation. A well planned formation process helps you avoid delays and costly corrections.
Formation can be straightforward for a sole trader, but legal advice is valuable when decisions affect control, liability, investment, or regulated activities. Common reasons to involve a solicitor include selecting the right structure across sole trader, private company limited by shares, partnership, limited partnership, or limited liability partnership, tailoring the company constitution and drafting shareholders agreements or partnership agreements to prevent disputes, allocating equity, options, and vesting for founders and employees, preparing compliant investment documentation, including SEIS or EIS advance assurance and subscriptions, reviewing or negotiating commercial leases for shops, offices, industrial units, or labs under Scots property law, obtaining and maintaining licenses such as food business registration, premises licenses for alcohol, and civic licenses, establishing data protection compliance under UK GDPR and the Data Protection Act 2018, registering with the Information Commissioners Office where required, protecting intellectual property, including trade marks, designs, patents, and confidential information, setting up employment and contractor documentation, policies, and required insurances, and navigating sector specific local and national rules, such as environmental regulation for industrial or coastal operations.
A lawyer can also project manage filings and timelines, coordinate with your accountant on tax registrations, and reduce risk in early contracts with customers and suppliers.
Business structures available in Aberdeen include sole trader, partnership under the Partnership Act 1890, limited partnership under the Limited Partnerships Act 1907, limited liability partnership under the Limited Liability Partnerships Act 2000, and limited company under the Companies Act 2006. If you incorporate a Scottish company or LLP, your registered office must be in Scotland and filings are made with Companies House. You will need a unique business name that complies with sensitive words rules and does not infringe others rights.
Taxes and filings include registering for Corporation Tax for companies, or Self Assessment for sole traders and partners, registering for PAYE if you employ staff, and considering VAT registration depending on turnover and business model. Thresholds can change, so confirm current figures before registering. Annual accounts and a confirmation statement are required for companies and LLPs. Partnerships and sole traders have annual tax filing obligations through HMRC. If you operate in construction, you may need to register for the Construction Industry Scheme.
Employment requirements in Scotland follow UK employment law. Before hiring you must check right to work, issue a written statement of employment particulars, comply with National Minimum Wage or National Living Wage, set up PAYE, enroll eligible staff into a workplace pension under The Pensions Regulator, and obtain Employers Liability insurance. Health and safety duties apply from day one.
Data protection compliance under UK GDPR and the Data Protection Act 2018 is mandatory if you process personal data. Many businesses must pay a data protection fee to the Information Commissioners Office unless exempt. Privacy notices, data processing agreements, and appropriate security measures are key.
Licensing and local permissions include business rates known as Non Domestic Rates administered by Aberdeen City Council, planning permission or a certificate of lawfulness for change of use or new development, food business registration with the local authority at least 28 days before opening, premises and personal licenses for alcohol under the Licensing Scotland Act 2005, and civic licenses for certain activities under the Civic Government Scotland Act 1982. Environmental permits may be needed through the Scottish Environment Protection Agency depending on your operations. Trading Standards and consumer law obligations apply to many B2C businesses, including distance selling and fair trading rules.
Intellectual property and brand protection are handled at UK level through the UK Intellectual Property Office. Many Aberdeen startups also work with universities or research institutes and need clear IP ownership and assignment terms.
Common options are sole trader, partnership, limited partnership, limited liability partnership, and private company limited by shares. Sole traders and ordinary partnerships are simpler but expose owners to personal liability. LLPs and limited companies offer limited liability and clearer separation of ownership and management, at the cost of more filings and governance. The best choice depends on risk, tax profile, investor expectations, and growth plans.
Yes. If you form a company or LLP in the Scotland jurisdiction, you must provide a registered office address in Scotland. Official notices are served there, and it will appear on the public register. You can use your own premises or a compliant service address.
Notify HMRC and register for Corporation Tax within three months of starting to trade, set up PAYE if you will pay staff, consider VAT registration, and put in place statutory registers, including the People with Significant Control register. You must file annual accounts and a confirmation statement each year. Time limits are strict and penalties apply for late filing.
It depends on your activity. Food businesses must register with the local authority 28 days before opening. Premises and personal licenses are needed for alcohol sales. Taxis, entertainment venues, and some services require civic licenses. Planning permissions or building warrants may be necessary for new uses or alterations. Check with Aberdeen City Council before committing to a site or launch date.
Most non domestic properties are subject to Non Domestic Rates in Scotland. Your bill is based on the propertys rateable value and the poundage set annually, with potential reliefs such as Small Business Bonus Scheme. The local council issues and collects rates. Budget for this cost alongside rent and service charges.
Set up PAYE with HMRC, confirm right to work checks, issue a compliant employment contract, enroll eligible staff in a workplace pension, arrange Employers Liability insurance, and implement basic policies covering health and safety, data protection, and grievance and disciplinary processes. Keep payroll and HR records from day one.
You must register if your VAT taxable turnover exceeds the registration threshold on a rolling 12 month basis, or if you expect to exceed it in the next 30 days. Voluntary registration can be beneficial for input tax recovery. Thresholds and schemes change, so confirm current rules and choose an accounting scheme that fits your cash flow.
Choose a company name that is available and compliant with Companies House rules, then consider registering a UK trade mark for your brand. Protect inventions through patents where appropriate, and record ownership through assignments if contractors or collaborators are involved. Use confidentiality and IP clauses in contracts to secure rights created during development.
Often yes, especially for service or online businesses. You may still need to consider planning or mortgage and lease restrictions, insurance coverage, and any licensing that applies to your activity. If customers or deliveries attend your home, neighbors and parking may be factors, and business rates can apply in some cases.
Seed Enterprise Investment Scheme and Enterprise Investment Scheme offer tax reliefs to qualifying investors in eligible companies. You typically seek advance assurance from HMRC before fundraising and then issue compliant documentation and shares. Your constitution and cap table must align with the schemes rules. A solicitor can coordinate the process and ensure post investment filings are completed on time.
Companies House for incorporation, filings, and name availability checks. HM Revenue and Customs for Corporation Tax, Self Assessment, PAYE, VAT, and the Construction Industry Scheme. Aberdeen City Council for planning, building standards, licensing, food business registration, and business rates. Business Gateway Aberdeen City and Shire for free startup advice and workshops. Scottish Enterprise and Scotland Can Do for growth support and innovation funding. Information Commissioners Office for data protection registration and guidance. UK Intellectual Property Office for trade marks, patents, and designs. Advisory, Conciliation and Arbitration Service for employment guidance. The Pensions Regulator for auto enrolment duties. Scottish Environment Protection Agency for environmental permits. Office of the Scottish Charity Regulator if you are forming a charity.
Clarify your business model, sector, and risk tolerance so you can select the right legal structure and licensing pathway. Gather key information including proposed name, activities, ownership and roles among founders, registered office and trading addresses, and initial investment or loan plans. Speak to a solicitor regulated by the Law Society of Scotland who works in corporate and commercial law and understands local Aberdeen requirements. Ask for a clear scope, timeline, and fee basis fixed fee or capped fee for incorporation and core documents when possible.
Coordinate with an accountant to plan VAT, payroll, and tax registrations, and to set up bookkeeping from day one. Do not sign a commercial lease or commit to a site until legal due diligence checks planning, licensing, and rates are complete. Prepare essential documents such as a shareholders agreement or partnership agreement, employee contracts and policies, website terms and privacy notice, and standard customer terms. Create a compliance calendar for filings and renewals. If your business is regulated or licensed, build in lead time for approvals before launch.
This guide is for general information only. For tailored advice, consult a solicitor who can assess your specific situation and produce the right documents and filings for your Aberdeen business.
