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.

a year ago

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