Your first year, one step at a time
Starting a business in Scotland
Starting out can feel like a lot. There are forms, taxes, rules and new words. This guide breaks it all into small, plain steps. It is written for Scotland, and it puts your legal duties front and centre — so nothing important slips past you.
Feeling overwhelmed? That is normal.
You do not need to do everything at once. You do not need to understand every word today. Read one part at a time. Every hard word is explained in the word list, and free help is only a phone call away through Business Gateway.
How to use this guide
- Go in order, or jump around. The menu lists every part. Each part ends with a link to the next.
- Look for the coloured boxes. They flag the things that matter most:
⚖️ Your legal duty
A thing the law says you must do.
Different in Scotland
Where Scotland's rules are not the same as England's.
💡 In plain words
A tricky word, explained simply.
⚠️ Watch out
A common trap that catches new owners.
💷 Money point
Something that affects your cash.
🗓️ Deadline
A date you need to remember.
One thing to understand first: Scotland is different
Some business rules are the same across the whole United Kingdom. Others are set in Scotland and work differently here. Getting these mixed up is the most common mistake people make when they read general UK advice. This guide always tells you which is which.
| Set for the whole UK | Set in Scotland |
|---|---|
| Company law and registering a company | Income Tax rates and bands on what you earn |
| VAT | Business rates (non-domestic rates) |
| National Insurance | Most licences (food, alcohol, short-term lets) |
| Corporation Tax | Land and Buildings Transaction Tax |
| Employment law and consumer law | Courts, debt enforcement and planning |
Why this matters
Your Income Tax is worked out on where you live, not where you work. If you live in Scotland, you pay Scottish Income Tax rates. Your tax code starts with an S. You cannot opt out.
What this guide covers
Before you start
Your idea, a simple plan, and the free help that exists.
Read →Choosing your structure
Sole trader, company or partnership — and how to register.
Read →Money and tax
Bank account, records, and the taxes you may need to pay.
Read →Your legal responsibilities
Licences, insurance, data protection and your ideas.
Read →Selling and getting paid
Customer rights, fair selling, invoices and chasing money.
Read →Premises and rates
Renting a place, business rates and working from home.
Read →Taking on people
Your first hire, pay, pensions and safety.
Read →Running it properly
Records, director duties and your own safety net.
Read →Funding and support
Free advice, loans and grants — all without paying a middleman.
Read →Your first year
A month-by-month plan of what to do and when.
Read →Where to get help
The official places to go for each question.
Read →Word list
Every tricky word in this guide, explained simply.
Read →
Please remember
This guide gives general help, not legal or money advice. Rules and figures change. The numbers here are for the 2026–27 tax year. Always check the current details with the official source before you act — this guide links to them throughout.