How to Start a Food Business in the UK (2026)
Opening a café, takeaway, restaurant or food stall has one non-negotiable first step that catches people out: you must register your food business at least 28 days before you start trading — running unregistered is a criminal offence. The good news is that registration is free and can't be refused. This guide walks every step in order so you open legally and with a strong hygiene rating from day one.
Step 1 — Register your food business (28 days before opening)
This is the one that must come first. Register with your local council at least 28 days before trading — it's free and registration can't be refused. It applies to cafés, takeaways, restaurants, home kitchens, market stalls and delivery-only kitchens alike.
Step 2 — Put a food-safety system in place
By law you need a written food-safety management system based on HACCP. The free official Safer Food, Better Business pack does most of the work — covering cooking, chilling, cleaning and cross-contamination. Food handlers should hold Level 2 Food Hygiene training. A council Environmental Health officer will inspect and give you a Food Hygiene Rating (0–5) — aim for a 5.
Step 3 — Get your allergen information right (Natasha's Law)
You must tell customers about the 14 regulated allergens. Food prepacked for direct sale (PPDS) needs a full ingredient list with allergens emphasised, under Natasha's Law. Keep an allergen matrix and train staff to answer queries safely — this is a legal *and* safety requirement.
Step 4 — Choose your structure, register with HMRC, and insure
- Sole trader or limited company — register with HMRC (and Companies House for a company) within 3 months of trading.
- Public liability and product liability insurance are effectively essential; employers' liability is legally required once you hire.
Step 5 — Alcohol & late-night licensing (only if it applies)
- Selling alcohol needs two things: a premises licence (for the venue) and a personal licence for the named Designated Premises Supervisor. Applications take 8–12 weeks with a 28-day public notice — start early.
- Serving hot food or drink between 11pm and 5am is a "late night refreshment" activity that needs a premises licence too, even with no alcohol.
Step 6 — The practical setup
- Business bank account, commercial waste contract, and pest control (skipping pest control is a fast way to lose your hygiene rating).
- Music licence (PPL PRS) if you play music.
- VAT — register once turnover exceeds £90,000. Food VAT is fiddly: hot takeaway is usually standard-rated, cold takeaway often zero-rated — get it set up correctly.
Food business requirements at a glance
| Requirement | Needed? |
|---|---|
| Food business registration | ✅ Legal — free, 28 days before trading |
| HACCP / Safer Food Better Business | ✅ Legal requirement |
| Level 2 Food Hygiene training | ✅ For food handlers |
| Allergen info / Natasha's Law | ✅ All food businesses (PPDS labelling) |
| HMRC + Companies House registration | ✅ Sole trader or company |
| Public & product liability insurance | ⚠️ Effectively essential |
| Employers' liability insurance | ✅ Legal if you employ anyone |
| Premises + personal licence | ✅ Only if selling alcohol |
| Late-night refreshment (premises licence) | ✅ Only if serving hot food/drink 11pm–5am |
| VAT registration | ✅ Once turnover > £90,000 |
Start your food business the easy way
Café, takeaway, restaurant or stall — the licences you need change with what you serve and when. Spark builds your exact food-business setup checklist, points you straight to the free food registration and the official hygiene and allergen guidance, and flags the alcohol and late-night licences only if they apply to you. It's free.
Build my free checklist →FAQ
What's the very first thing I must do? Register your food business with your local council — free, and at least 28 days before you open.
Do I need a licence to open a café or takeaway? Not a "café licence," but you must register as a food business and follow food-safety law. You only need alcohol/late-night licences if you sell alcohol or serve hot food after 11pm.
Does Natasha's Law apply to me? If you sell food prepacked for direct sale (e.g. sandwiches made on-site and put on a shelf), yes — it needs full ingredient and allergen labelling.
When do I register for VAT? Once turnover passes £90,000 — and get food VAT rates set up correctly from the start.
Last reviewed 2026. Confirm current rules on GOV.UK and the Food Standards Agency before acting.