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E-commerce & Online Business Setup in the United Kingdom

The cancellation right is the one

E-commerce & Online Business Setup in the United Kingdom

UK consumers who buy online have a statutory right to change their mind. Your returns policy cannot remove it.

GCC business setup specialists

Distance selling rules override your terms

Consumers buying at a distance have a cooling-off period in which they may cancel and return goods without giving a reason, with prescribed information that must be given before the order. A returns policy that is stricter than this is unenforceable, and failing to give the required information extends the cancellation period substantially. It is the obligation online sellers most often get wrong.

  • Consumer cancellation rights built into your terms correctly
  • Data protection registration and notices handled
  • Post-Brexit VAT on cross-border sales assessed

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20+

Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.

7,000+

Companies successfully established.

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What applies

Obligations for a UK online business

No licence, but real consumer and data law.

AreaPosition
E-commerce licenceNone required.
Consumer cancellation rightStatutory cooling-off period for distance sales.
Pre-contract informationPrescribed information required before the order.
Data protectionUK data protection law, with a registration fee payable.
VATRegistration on threshold; cross-border rules changed post-Brexit.
Imported goodsCustoms declarations and import VAT apply.

Consumer rights, information requirements, data protection obligations and cross-border VAT rules are set by legislation and change. Your model is checked against current requirements before launch.

How it works

Setting up the online business

Terms, data, then tax.

01

Get the consumer position right

Cancellation rights, pre-contract information and delivery terms set out so your terms are enforceable rather than void.

02

Register and notify

Company formed, data protection registration fee paid and privacy notices prepared for the data you actually process.

03

Set up tax and supply

VAT position assessed including cross-border sales, and customs arrangements made where you import.

To assess your model

What we will ask

Who you sell to changes the obligations most.

Talk it through →

  • What you sell and to whom
  • Whether customers are consumers or businesses
  • Countries you ship to
  • Whether goods are imported
  • Whether you hold stock in the UK
  • Expected turnover
  • Which marketplaces or platforms you use
  • Whether you sell digital products or services
  • What personal data you collect
  • Whether you use data for marketing
  • Whether users can post content
  • Your intended returns and delivery policy

Scope

What is included, and what is not

Stated plainly, so nothing is added once the engagement starts.

Included in the service fee

  • Company formation
  • Consumer cancellation and information requirements explained
  • Guidance on enforceable terms and returns policy
  • Data protection registration
  • Privacy notice guidance
  • VAT assessment including cross-border sales
  • Accounting and bookkeeping set up
  • Customs guidance where goods are imported

Not included, quoted separately

  • Companies House and registration fees, paid at cost
  • Terms and conditions drafted by a lawyer
  • Website and platform development
  • Payment gateway contracts and commissions
  • Customs duties and clearance charges
  • Logistics and fulfilment
  • Marketing
  • Marketplace fees

Verify independently

Relevant UK authorities

We file directly with these bodies on your behalf.

Companies HouseHM Revenue & CustomsUK Visas and ImmigrationIntellectual Property OfficeInformation Commissioner’s OfficeThe Pensions Regulator

Questions

UK e-commerce setup — FAQs

Can I set my own returns policy?

You can be more generous than the law, never less. The statutory cancellation right for distance consumer sales cannot be contracted out of.

What happens if I do not give the required information?

The cancellation period is extended substantially, which can leave you accepting returns long after you expected the sale to be final.

Do I need to register for data protection?

If you process personal data you are generally required to pay the data protection fee and comply with UK data protection law. Online sellers almost always are.

Did Brexit change VAT on my sales?

Yes, materially for cross-border sales and imports. The treatment depends on what you sell, to whom and where, and needs assessing for your specific model.

Do business-to-business sales have the same rules?

No. The consumer cancellation rights apply to consumer sales. Selling business to business changes the position considerably.

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