How to Start a Record Label: UK Basics

A record label looks like a name and a logo from the outside. Behind it is a small business: it makes promises to artists, pays for work, receives money and answers for what it publishes. Starting one well means getting those basics in order before the first release, while the stakes are low and nobody is waiting for a payment.

This guide covers the UK basics in the order most new labels meet them: what the label is for, how to set it up legally, how to check a name, what to put in writing with artists, how identifiers and distribution fit in, which rights bodies matter, the tax basics and a checklist for the first release. It is written by a distributor, so we have a commercial interest in labels using distribution. It is not legal or tax advice, and rules differ outside the UK. If a point affects money or rights, ask a solicitor or an accountant.

Decide what the label is for

Write one page before you register anything. Say what sound or scene you release, whose music it is, how many releases you can afford in a year, and who does each job. Most new labels are one of three kinds, and the kind decides how much set-up you need now.

Kind of label	What you need now	What can wait
A brand for your own music	A name, a consistent artist spelling and a distribution plan that lets you show the name	A company, a trade mark, artist contracts
A small roster label	Written agreements, split sheets, a record of every release and a way to report income to artists	A trade mark, a branded portal
A label that serves many artists	All of the above, a company structure, clear support routes and a decision on tools	Nothing on that list should wait for long

Be honest about the kind you are. A single artist who calls a release “Volume 1” of a label does not need a limited company this month. A label that is about to take other people’s masters does.

Choose a legal structure

In the UK the two usual starting points are a sole trader and a private limited company. GOV.UK explains both, and an accountant can tell you which suits your plans.

	Sole trader	Limited company
Set-up	You can start trading, and you register for Self Assessment once you earn above the limit GOV.UK states	You register with Companies House: choose a type and a name, appoint a director, list shareholders and anyone with significant control, and give a registered office address
Liability	Unlimited: you are personally responsible for business debts	The company is a separate legal entity
Records	Keep records from the day you start trading	Keep company and accounting records, and add Corporation Tax to your business tax account after registering
Good fit	A first release or two, with little money moving	Signing other artists, taking on costs or contracts in the label’s name, or wanting a business bank account

At the date this was written, GOV.UK said a sole trader must register for Self Assessment if they earn more than £1,000 in a tax year. Check the figure and the dates on the page before you rely on them. Whichever you choose, keep the label’s money separate from your personal money from the first day.

Check the name before you print it

A label name appears on artwork, in store credits, on YouTube and in contracts, so changing it later splits a catalogue. Check it in four places.

• Companies House. A company name cannot be the same as another registered name, and GOV.UK says a name that is too like an earlier one can be challenged. A name that conflicts with a trade mark can also be forced to change if someone complains.
• Stores and platforms. Search Spotify, Apple Music, YouTube, Beatport and Discogs for the same or a similar name, and secure the handle on the social accounts you will use.
• The trade mark register. The Intellectual Property Office checks whether an application is the same as, or similar to, existing marks. GOV.UK said registration takes about three to four months and costs at least £205 when it was read, and a mark lasts ten years before renewal. Registration is optional for releasing music.
• Plain sense. Say it aloud. Can a listener spell it after hearing it once?

How the name shows up on a release (the © and ℗ lines and the “Provided to YouTube by” label) is covered step by step in how to release music under your own label name, so this guide does not repeat it.

Put the agreements in writing

A label exists because artists trust it with their work. The first agreement you write sets the tone, so make it short, clear and fair. For a single release it usually needs the following headings.

• The parties and the music. Who is the artist, who is the label, and which recordings and artwork the agreement covers.
• What the label receives. A licence of stated rights for a stated term and territory is not the same as an assignment of ownership. Say which one you mean. Distribution alone does not transfer ownership of a recording or song.
• Costs. Who pays for mixing, mastering, artwork and promotion, and whether the label recovers any of it before sharing income.
• Money. The share each side receives, how often you will report and pay, and how you will handle a dispute about a figure.
• Credits and approvals. Artist spelling, credits and who approves artwork, edits and remixes.
• Ending. What happens to live releases and to future income if the agreement ends.

Pair the agreement with a split sheet for each track, signed by everyone who contributed, because the agreement between label and artist does not settle how the artist shares income with a producer or a vocalist. Royalty splits and payouts shows a sample sheet. Pay a music lawyer to draft your template once, then reuse it. To see how an artist will read your terms, work through record deal terms to check before signing.

Identifiers and distribution

Every recording needs an ISRC and every release a UPC. On WBBT these are part of every plan: leave the fields blank for new music and the codes are generated. They carry the distributor’s registrant code, which is normal. If you want your own registrant code, PPL is the UK’s ISRC agency, and its help centre says you can request one when you join as a recording rightsholder or register for an ISRC only. ISRC and UPC codes explained shows when a recording keeps its code.

Choosing where to distribute is a business decision as well as a technical one. For a label releasing other people’s music, the useful differences are the number of artists, a custom label name on YouTube, roster management and how you will report to artists. The Label plan, Label Software and the early-access White-Label and API options solve different problems, and label, white-label or API: which do you need compares them. Start with the simplest tool that does the job. You can move up when the roster demands it.

Rights bodies: PPL and PRS

Recordings and songs earn different royalties, and different bodies collect them.

• PPL licenses recorded music for broadcast and public performance in the UK and pays recording rightsholders and performers. PPL says recording rightsholders who own or exclusively license rights may be entitled to royalties, and that joining is free. A label that owns masters can register itself. WBBT also offers an optional PPL UK service, covered in PPL and neighbouring rights for UK releases. Use one route per recording and never both.
• PRS for Music represents songwriters, composers and publishers, so it concerns the composition, not the master. A label that only releases recordings does not join PRS in that capacity. The writers do, or their publisher does.

Ask who holds each right before anyone registers anything. If an artist already has a publisher or a PPL registration, say so in the agreement.

Accounting, VAT and reporting to artists

Keep four things from the first release: a record of income by release, a record of costs by release, copies of every agreement and the statements you send to artists. WBBT posts royalties in monthly reporting cycles after store reports are processed, so the money for a stream arrives later than the stream, and daily or weekly views describe already reported earnings. Build that lag into your cash flow before you promise artists a payment date.

On tax, GOV.UK says a business must register for VAT if its taxable turnover passes a stated threshold, which was £90,000 over the previous twelve months when it was read, or is expected to pass it within thirty days, and that registering below the threshold is voluntary. Most new labels are far below it, but check the current figure. Keep records of costs, because they reduce the profit you are taxed on. An accountant is worth the fee at the point where you sign another artist or hire someone.

A first-release checklist

1. Write the one-page plan. Purpose, release count, who does what, and what the first release is.
2. Choose the structure and open a separate account. Sole trader or company, as above.
3. Check and secure the name. Companies House, stores, social handles and, if you want it, a trade mark application.
4. Sign the agreement and the split sheet. One per artist, and one per track.
5. Gather the files. Final WAV masters, a square cover of 3000 by 3000 pixels, titles, credits, rights details, language and explicit information, as the WBBT FAQ lists.
6. Set the label name. On a Label plan, add it in My Labels, then choose it in the Metadata stage of the Release Wizard.
7. Set the identifiers and rights options. Leave the ISRC and UPC fields blank for new music. Decide per recording whether to use the PPL UK option.
8. Submit with time to spare. The FAQ advises at least two weeks for a planned campaign, and more for specialist delivery or a new label application.
9. Check the result. Delivered does not mean live. Open each store page, check the credits and the artist profile, and keep the links.
10. Report and file. Send the artist the information the agreement promised, and put the release in your catalogue register.

The artist side of the same flow is in how to distribute music to Spotify and Apple Music and the metadata and artwork checklist.

An invented example, in order

Here is how the order of decisions might look for an invented label called Example Sound, started by a producer who expects to release their own work and then sign two friends.

Stage	What happens
Month one	The producer writes the one-page plan, searches the registers and stores for the name, secures the social handles and decides to trade as a sole trader for now.
Month two	They draft a one-page licence and a split sheet with a lawyer’s help, and agree who pays for artwork on each release.
Month three	The first EP goes out on a Label plan with the label name set in My Labels. The producer keeps a spreadsheet of releases, ISRCs, UPCs and dates.
After the first statement	They send each artist a plain statement, review the costs, and decide whether it is time to form a company before signing the next artist.

Nothing in that table is special. Its value is the order: purpose, name, paperwork, release, report. Skipping a step usually shows up later as a dispute about money or credit.

Mistakes to avoid

• Signing an artist before you have a written agreement and a split sheet.
• Printing the name on artwork before checking the registers and the stores.
• Assuming a registered company name or a store label name protects the brand. It does not by itself.
• Mixing personal and label money.
• Registering a recording with more than one collection route.
• Promising an artist streams, playlists or a payment date. Stores and reporting cycles decide those.
• Leaving out the exit terms: what happens to live releases if you part.

Frequently asked questions

Do I need a limited company to start a label?

No law says a label must be a company. Many start as a sole trader, or as a hobby with no sales yet, and move to a company when the risk, the money or the number of artists grows. A company gives the business its own legal identity, but it also brings filing duties. Ask an accountant which fits your plans.

How much does it cost to start a label?

It depends almost entirely on what you choose to pay for. The fixed items are small: a company registration if you want one, a trade mark if you want one and a distribution plan. The larger costs are the ones you control, such as mixing, mastering, artwork, video and promotion. Budget each release on its own and keep the receipts.

Can I start a label with only a distribution account?

Yes, for your own releases. A Label plan supports unlimited artists, roster management and a custom “Provided to YouTube by” name, and ISRC and UPC codes are part of every plan. The label-name guide shows which plan covers which field.

Do I need to register a trade mark for my label name?

Not to release music. Registering is optional and costs money, and it protects the name only in the way and the places the registration covers. Search the registers and the stores first, and consider registering once the name is attached to a catalogue you want to protect.

Do I need to join PRS and PPL?

They cover different rights. PPL deals with recordings, so it matters if your label owns or exclusively licenses masters. PRS for Music deals with songs, so it matters to the writers and publishers of the compositions. Check who owns what before anyone joins, and do not register the same recording twice. The PPL guide explains the WBBT option.

Can I sign other artists straight away?

You can, but have the paperwork ready first: a written agreement, a split sheet and a clear statement of who owns the recordings. Your artists will compare your terms with the ones in record deal terms to check before signing, so write terms you would accept yourself.

Sources and next steps

These are the primary pages behind the facts above. Fees, thresholds and rules change, so read the current page before you act.

• Set up a limited company, GOV.UK (accessed 25 October 2026).
• Set up as a sole trader, GOV.UK (accessed 25 October 2026).
• Choose a company name, GOV.UK (accessed 25 October 2026).
• How to register a trade mark, GOV.UK (accessed 25 October 2026).
• Register for VAT, GOV.UK (accessed 25 October 2026).
• Become a PPL member and How do I get an ISRC?, PPL (accessed 25 October 2026).
• Join PRS for Music, PRS for Music (accessed 25 October 2026).

To go further, read the hub guide on choosing between a label plan, white-label and an API, then the guides to white-label distribution and the distribution API if your plans grow. Compare the WBBT plans, read the WBBT FAQ and the music distribution page, and submit your music when the first release is ready.