Electrician Startup Checklist

Sol WrightCo-founder, Tradehand

Published 6 May 2026Updated 19 August 2026

A complete step-by-step checklist for setting up a compliant, professional electrical trade business in the UK, from choosing your legal structure through to building repeat maintenance work.

What's included

Legal structure and registration (Ltd vs sole trader)
NICEIC and NAPIT scheme membership steps
Insurance requirements and minimum cover amounts
Part P competent person scheme membership
Business banking and accounting software setup
Essential test equipment checklist
Standard terms and conditions guidance
How to win your first customers with your Tradehand assistant

Preview: first 5 steps

Decide between Ltd company (Companies House) or sole trader (HMRC Self Assessment). Ltd offers limited liability; sole trader is simpler to start.

Get NICEIC or NAPIT registration

You must be registered with an approved competent person scheme to self-certify notifiable electrical work in England and Wales under Part P of the Building Regulations. NICEIC (Certsure) and NAPIT are the two main government-approved schemes.

Public liability insurance (minimum £2m)

Most domestic clients and all commercial clients will require proof of PLI before you start work. £2m is NICEIC's own minimum for registration, and £5m is common cover in practice.

Employers' liability insurance (if hiring)

Legally required as soon as you employ anyone, even one person. The legal minimum is £5m cover. Fines for not having it run to £2,500 for every day you're uninsured, plus up to £1,000 for not displaying or producing the certificate.

Open a business bank account

Keeping business and personal finances separate makes tax simpler and looks professional. Many banks offer free business accounts for an introductory period, so compare current offers before choosing.

See where admin is costing you time

Answer a few questions about your trade business and see what your assistant could take off your plate.

Get my report

Frequently asked questions

Do I have to join NICEIC or NAPIT to work as an electrician?

You do not need scheme membership to trade, but you do need to be registered with a government-approved competent person scheme to self-certify notifiable electrical work in England and Wales under Part P of the Building Regulations. NICEIC (Certsure) and NAPIT are the two main approved schemes.

Source: gov.uk: Competent person scheme, current schemes and how schemes are authorised (NICEIC/Certsure and NAPIT as approved Part P schemes)

How much public liability insurance does an electrician need?

£2m is NICEIC's own minimum for registered contractors, and £5m is common cover in practice. Public liability insurance is not a legal requirement in itself, but most domestic customers and effectively all commercial clients ask for proof before you start work.

Source: NICEIC Insurance: Electricians public liability insurance (£2m minimum for NICEIC registration)

When do I need employers' liability insurance?

As soon as you employ anyone, even one person. The legal minimum is £5m of cover, the fine for being uninsured is £2,500 for every day you are not properly insured, and there is a further £1,000 fine for not displaying or producing the certificate when asked.

Source: gov.uk: Employers' liability insurance (£5m minimum cover, £2,500/day fine)

Should I start as a sole trader or set up a limited company?

A sole trader registers for Self Assessment with HMRC and is personally responsible for all the debts of the business, which is the simpler and faster way to start. A limited company is registered at Companies House and is legally separate from the people who own it, so owners are responsible for business debts only up to what they put in.

Source: gov.uk: Set up as a sole trader (register for Self Assessment with HMRC, unlimited personal liability)