Beginner’s Guide on Starting a Clothes Hire Business in the United Kingdom

Starting a Clothes Hire Business in the United Kingdom The Clothing rental business is taking a huge market in recent years. The services have benefited both the brands and consumers. It allows the customers to explore different types of customs and also lets the brand advertise itself to the customers. If you’re thinking of starting a clothes hire business in the United Kingdom, you can add a variety of fashions and trends going on in the market and collect them for your business.

Shoppers are always fascinated by the unique items rather than the basic ones. Therefore, you can take your time to understand the customer profile, which group of people are you targeting, and what different services you’ll be providing before starting a clothes hire business.

For detailed information regarding starting a clothes hire business in the United Kingdom, let’s view the following articles.


Guide on Starting a Clothes Hire Business in the United Kingdom

Before indulging yourself in a business, you need to do some research and familiarize yourself with the business to achieve a successful career. So, here are some points you need to follow while starting a rental business.

Planning and Research

Starting any business requires you to understand the market and customer demands and plan about your business types, finance, and other resources you require to set up a business. Furthermore, it’s essential to make a business plan and marketing plan to keep you on track with success.


This is the next thing you need to consider. You don’t want to invest money in such places where there is less flow of consumers. So, your business should select a place where your business can catch the eye of consumers and could flourish.

Legal Credentials

It’s essential to start a business legally in the United Kingdom. Thus, you need to obtain a mandated business license and register your shop with the state government. In addition, it’s beneficial for you to cover your business by insurance to secure from any foreseeable damages. 3E Accounting provides you with the company incorporation services in the UK that look after all the documents required to register the business and also helps you with legal issues.

Understand the Market

Customers are always delighted by the unique items, so have the inventories that match the customer profile. You can study the trends in the market and apply them to your business. For instance, some may be fascinated by vintage wedding costumes and traditional customs. For these reasons, it’s beneficial to understand the customer demand and take over the market.

Stock the Resources

Before starting a business, you need plenty of resources, the major of all is the stock of customs to present to the customer, and likewise, you’ll need to furnish your place with clothes racks, shelves, etc. Also, you may require computers for maintaining bills, keeping a record of inventory, customers, etc. So, you need to stock all these resources prior to opening your business.


You need to be competitive in the market. If you overpriced the clothing items, you might lose the consumers on the first day of your business, and under-pricing may not give you profit as you’ve desired. For this, you should research the market prices and try to keep your price a little low to be competitive.


Registration Procedure for Starting a Clothes Hire Business in the United Kingdom

Any business in the United Kingdom should comply with specific regulations and rules set up by the government. Here are some steps to register your clothes rental business in the United Kingdom.

Collect Your Particulars

Every business requires you to submit your identification and address to a specific department. Likewise, you need to provide your valid identity, name, and location of your company to the authorized department of the government.

Apply to HMRC (HM Revenue & Customs)

You may start your business as a sole trader or limited company, or as a partnership. However, if you’re starting your business as a limited company, you need to register the company with HMRC. You may not track your path to collect all the documents to comply with the legal issues by yourself. In such situations, you can seek help from 3E Accounting, which guides you at all the steps of company registration in the United Kingdom.

Get Your Registration Number

After applying, you can obtain your registration number and start your business. Moreover, if you’ve set up your business as a limited company, you need to file your accounts with HMRC to pay your taxes before deadlines.

Registration of Your Company Name and Intellectual Property

Registering your company name helps to secure your business from duplication and also doesn’t confuse your customers. Beyond the name, if your company has any logos, or designs, or trademarks, they can also be registered. It protects your business ideas, and others are not allowed to copy them.


Licenses & Permits Required for Starting a Clothes Hire Business in the United Kingdom

There are different licenses you may require to initiate your clothes hire business. Some of the are discussed below;

Second-hand Dealer License

You may be dealing with second-hand products during your business activities. Therefore, you need to obtain a license from the local authorities in the United Kingdom to operate your business. If you are unsure that your business falls under second-hand products or not, you can consult the local authority’s trading standards department for further information. Also, a UK corporate service provider can consult it for you and can also help you to apply for those licenses and permits.

Music License

Often shops in the United Kingdom are entertained with the background music. And if you’re planning to do the same, you must obtain a music license from PPL PRS Ltd. in addition. If you desire to play music videos, you’ll be required to obtain a license from PPL (Phonographic Performance Limited).

Dry Cleaning Permit

It’s essential to dry clean your clothes after it’s been returned by the consumers. So, you need to contact any dry cleaners for the service, or you need to provide such service by yourself. So, if you’re deciding to operate such facilities within your premises, you must obtain a dry cleaning permit from the local authority by paying a certain amount.

Consumer Credit Authorization

There are specific time limits for the clothes that you hire. Therefore, if any consumers rent the customs for more than three months, you’ll require customer credit authorization from FCA (Financial Conduct Authority)

A Permit From ICO (Information Commissioner’s Office)

This is the permit required if you choose to use computers to record the information of your customers. For obtaining this permit, you need to register with ICO.


You can secure your business by covering some insurance like product liability, product liability, insurance for premises, it’s content and inventories, insurance of clothes that have been hired, motor insurance (if delivery services are available), business interruption insurance, etc.

Starting a Clothes Hire Business in the United Kingdom



To sum up, these are the various licenses and permits that you require to start a clothes hire business in the United Kingdom. You can start your business by either buying an existing business or setting up your own company. However, starting a business is always a challenging task, and it requires huge resources and efforts too.

3E Accounting helps to incorporate your business and guide you at every step. The team is professional and experienced in providing incorporation services for years. To get more details, contact 3E Accounting.