Do I need to register a company to sell online in the UK?

You must register with HMRC once you trade, as a sole trader or through a limited company. Marketplaces increasingly demand verified business details. A limited company protects the brand name you are building.

How much does it cost to start an online shop?

Roughly £1,000 to £6,000 for most first stores. Stock is the biggest variable. Platforms cost tens of pounds a month. The brand layer of company, domain, and launch site comes in around £370 combined.

What makes a good online shop name?

Short, memorable, pronounceable, and available everywhere at once: as a .com or .shop domain, as a company at Companies House, and as a handle on the platforms you will market through.

The no nonsense guide

Start an Online Shop in the UK

An online shop starts in a spare room and sells anywhere. That is the opportunity and the trap: the name has to be free as a domain, free at Companies House, and free as a handle on every platform you will sell through. Stock is the biggest early cost. The brand is the biggest early decision.

The short version

1.Pick a name you can own everywhere: domain, Companies House, and the social handles. Check all three in one sitting.
2.Register the domain the moment it checks out. Domains disappear. Company names mostly wait.
3.Register with HMRC or form a limited company. About £63 all in for the company.
4.Check the compliance rules for your product category before buying stock.
5.Launch with one platform, one product range, and a returns policy that honours the 14 day cancellation right.

What it costs to start

Initial stockcommonly £500 to £5,000 depending on product
E-commerce platformroughly £20 to £40 a month, or transaction fees
Limited company registrationfrom about £13 plus the £50 Companies House fee
Domain and launch websiteabout £305 all in through the NameGenie package
Packaging and first marketing testsbudget £200 to £1,000

Dropshipping lowers the stock number and raises the marketing one. Own-stock brands invert it. Either way, the brand assets pay back longest: name, domain, site.

Naming a online shop

The name must survive being said in a video and typed from memory afterwards. Short, spellable, distinctive.
Check the marketplaces and social platforms at the same time as the domain. A name taken as a handle is taken.
The .com matters most in e-commerce because customers can be anywhere. The .shop and .store endings are honest fallbacks.

NameGenie checks the domain and Companies House on every generated name, so the online shop name you fall for is one you can register today. Generate names for your online shop, then follow the start a business journey to register the domain, form the company, and get a website live in 7 days.

The paperwork that matters

Register with HMRC as a sole trader or form a limited company. Online selling income must be declared either way.
Product compliance depends on category. Toys, cosmetics, food, and electricals each have their own UK rules. Check yours before buying stock.
Distance selling rules give online customers a 14 day right to cancel. Your returns policy must reflect it.

Questions founders ask

Do I need to register a company to sell online in the UK?: You must register with HMRC once you trade, as a sole trader or through a limited company. Marketplaces increasingly demand verified business details. A limited company protects the brand name you are building.
How much does it cost to start an online shop?: Roughly £1,000 to £6,000 for most first stores. Stock is the biggest variable. Platforms cost tens of pounds a month. The brand layer of company, domain, and launch site comes in around £370 combined.
What makes a good online shop name?: Short, memorable, pronounceable, and available everywhere at once: as a .com or .shop domain, as a company at Companies House, and as a handle on the platforms you will market through.

Starting something else? Start a cleaning business, Start a consultancy, Start a café. Costs are typical ranges, not quotes, and this page is a general guide, not legal, tax, or financial advice.