How to Start an Import-Export Business in the UK (2025 Guide)

The UK is a global trading hub with total trade in goods and services exceeding £1.3 trillion in 2024. From importing microchips for electric vehicles to exporting pharmaceuticals and whisky, opportunities are immense. However, many new entrepreneurs fail because they overlook legal registrations, customs compliance, and realistic cost planning. This guide explains how to start an import-export business in the UK, covering licenses, costs, current regulations, and market trends to help you build a compliant and profitable trade business in 2025.

Why Start an Import-Export Business in the UK?

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The UK offers a strong domestic market with high demand for imported products such as electronics, clothing, food items, chemicals, and automotive parts. For example, electronics and machinery accounted for over £100 billion of imports in 2024. On the export side, pharmaceuticals, cars, machinery, and beverages remain top performers, showing the UK's reputation for high-quality manufacturing and strict compliance standards.

Post-Brexit trade agreements have opened new opportunities. Deals with Australia and Japan removed many tariffs, while joining the CPTPP in 2023 gave UK businesses easier access to Asia-Pacific markets. Combined with the UK’s advanced ports, airports, and digital customs systems, starting an import-export business has never been more feasible.

Key Steps to Start Your Import-Export Business

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The first step is deciding what products to trade. Your choice should consider profit margins after taxes and shipping, market demand trends, and regulatory complexity. In 2025, sustainable textiles and smart home devices remain popular imports, while pharmaceuticals, processed food, and renewable energy components are strong export categories.

Conducting detailed market research is crucial. Using UK Trade Info and ONS data helps you understand import volumes, pricing trends, competitor positioning, and customer expectations. This allows you to identify market gaps and position your products effectively.

Your business plan should outline your goals, product sourcing details, target export markets, marketing approach, and financial forecasts. It is also essential to plan for exchange rate fluctuations, especially if you deal in USD or EUR with suppliers or buyers.

Legal Requirements and Registrations

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You need to register your business as either a sole trader or a limited company. Sole trader registration is simple and free with HMRC but carries full personal liability. Registering as a limited company costs £12 online and provides limited liability, which can build credibility with overseas suppliers and buyers.

One of the most critical legal requirements is obtaining an EORI Number. This Economic Operator Registration and Identification number is mandatory for importing or exporting goods. Applications are free through HMRC and usually processed within three working days. Without it, your goods will not clear customs, leading to delays and storage charges.

If your taxable turnover exceeds £90,000, you must register for VAT. Even if below the threshold, voluntary registration helps reclaim import VAT and builds trust with suppliers and customers.

Depending on your products, you may need additional import or export licenses. For example, food and agricultural items often require DEFRA health certificates, chemicals and pharmaceuticals need approval from HSE or MHRA, and military or dual-use goods require an export license from the Export Control Joint Unit. Checking exact requirements using the government’s import/export license checker ensures compliance.

Costs of Starting an Import-Export Business

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Starting costs vary depending on your products, suppliers, and trade scale. Below are approximate costs you should plan for:

• Company registration: £12 if registering as a limited company online

• EORI registration: Free via HMRC

• Import/export licenses: £0–£350 depending on product type and category

• Product sourcing: £1,000–£20,000+ based on order size and supplier terms

• Shipping and logistics setup: £500–£2,500 for initial freight agreements and setup

• Customs broker fees: £30–£100 per shipment, useful for smooth compliance

• Website and branding: £500–£3,000 to build a professional online presence

• Marketing and promotion: £500–£5,000 for initial campaigns to attract buyers

• Insurance: £250–£1,200 annually for liability and marine cargo cover

Typically, setting up a small import-export business costs between £3,500 and £10,000+, depending on the products you trade and the volume you handle.

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How to Import Goods into the UK

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To import goods, start by finding reliable suppliers. Platforms such as Alibaba, Global Sources, and EUROPAGES can help you connect with verified manufacturers and distributors. Always verify supplier credibility through references, certifications, and, if possible, third-party audits. Requesting product samples before committing to a large order reduces the risk of quality issues.

Negotiating contract terms is crucial to avoid hidden costs. Agree on Incoterms, such as FOB (Free on Board), CIF (Cost, Insurance and Freight), or DDP (Delivered Duty Paid), to define responsibilities for shipping, insurance, and customs clearance. Clarify payment terms, delivery timelines, and penalties for delays to protect your interests.

Choose your shipping method based on product type and budget. Sea freight is the most cost-effective option for large volumes but typically takes four to six weeks from Asia. Air freight is faster, often taking three to ten days, but costs more. Courier services like DHL are best suited for small parcels with simplified customs processes. Working with an experienced freight forwarder ensures smooth logistics and customs declarations.

When your goods arrive in the UK, submit import declarations through the Customs Declaration Service, pay applicable import VAT and customs duties, and keep all records organised for HMRC compliance and potential audits.

How to Export Goods from the UK

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Exporting requires understanding market regulations and buyer expectations in your target countries. Resources like the Department for Business and Trade’s market guides help identify demand, standards, and potential barriers.

Depending on your product, you may need to register with specific export authorities. Food exporters must register with the Food Standards Agency, while pharmaceutical exporters need approval from the MHRA. Compliance with packaging, labelling, and safety standards is critical to prevent rejection at borders.

Prepare export documentation carefully. This includes a commercial invoice, packing list, export declaration via CDS, certificate of origin if needed, and any product-specific certificates such as phytosanitary or halal certifications.

Partnering with freight forwarders experienced in your export destinations reduces risks and ensures regulatory compliance. Always insure your cargo for its full value to protect against damage or loss during transit.

Current Trends in UK Import-Export (2025)

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Digitisation continues to transform trade processes. HMRC’s CDS system now fully replaces CHIEF for customs declarations, making electronic filings mandatory. Sustainability remains a growing focus, with strong demand for carbon-neutral and eco-friendly products in food, textiles, and technology sectors.

Many UK businesses are adopting nearshoring strategies, sourcing from EU or Eastern Europe to reduce shipping delays and supply chain risks highlighted during COVID-19 and recent geopolitical events. Trade finance solutions are also expanding, with platforms like Tradewind Finance and HSBC Trade Solutions offering invoice financing and supplier payment support to improve SME cash flow.

Common Mistakes to Avoid

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Trading without an EORI number is a common mistake that leads to customs delays and storage fees. Failing to include customs duties and taxes in your pricing can reduce profit margins unexpectedly. Poor supplier verification increases the risk of scams or receiving substandard products. Misunderstanding Incoterms often results in unexpected liabilities or disputes over responsibilities. Additionally, underestimating shipping times can harm your reputation if customer deliveries are delayed.

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Tips for Success

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Building strong relationships with reliable suppliers, buyers, and logistics partners is essential. Staying updated on regulatory changes through HMRC and Department for Business and Trade newsletters helps you remain compliant. Diversifying your products and target markets minimises risks from market fluctuations. Trade credit insurance protects against buyer payment failures. Using customs brokers or trade compliance software streamlines documentation and reduces administrative burdens.

Conclusion

Starting an import-export business in the UK is profitable with strong domestic demand, advanced logistics, and expanded trade agreements. Success depends on understanding legal requirements, realistic financial planning, and building reliable supply chains. Registering for an EORI Number is a basic but essential step to ensure smooth customs clearance. With the right preparation, your business can confidently grow in the competitive global market of 2025 and beyond.

FAQs

Do I need an EORI number if I import only once?
Yes, any import or export activity requires an EORI number for customs clearance.

How long does EORI registration take?
Typically, it is processed within three working days through HMRC’s online system.

Can I import food products without a license?
No, most food products require health and hygiene certifications to comply with UK regulations.

What are Incoterms?
Incoterms are international terms that define buyer and seller responsibilities for shipping, insurance, and customs.

Do I need VAT registration for exporting?
VAT registration is not mandatory if your turnover is below £90,000, but it allows you to reclaim VAT on business expenses and increases business credibility.