I'm planning to start a restaurant - what type of company should I form?


Trying to get things organised to set up a new restaurant in Edinburgh. It will be a relatively small set up to begin with, but we’ve got big plans. Now, I know food, but I don’t know government red tape. Could someone please help me out regarding what type of company a restaurant should form as? Thanks for your help, really need it!



A company limited by shares is the ideal structure for setting up and running a restaurant. You can do this on your own or with business partners, so there’s a lot of room for ownership and management flexibility.

By operating as a limited company, each owner (shareholder) will be protected by limited liability for business debts. You will only be legally responsible for contributing the value of your shares - beyond that, the company itself is responsible for its debts because it is recognised as a legal individual.

You can incorporate a limited company online through a company formation agent. The application is really easy to fill out, and most are approved by Companies House in a few hours. It is probably the easiest part of setting up a new business so it’s nothing to worry about.

If you have not done so already, I would advise speaking to Business Gateway for expert guidance on starting your new venture. They can suggest funding options and they also provide seminars and workshops for startups.

10 months ago

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