What are the requirements to open a hair salon in the UK?

If you’ve been dreaming of opening your own hair salon, congratulations! The hair and beauty industry is vibrant, rewarding, and full of potential for success.

However, before you start offering those fabulous cuts, styles, and colours, there are certain requirements to open a hair salon in the UK that you’ll need to be aware of. It’s important to ensure everything is in place before you start seeing clients. Not just for your peace of mind but also to ensure you operate legally and professionally.

In this guide, we’ll break down the UK hair salon requirements, from legal obligations to the practical steps you’ll need to take to set up your business. Let’s look at everything you need to know to start your salon journey on the right foot.

Register your business

The first step is officially registering your business. There are a few options when it comes to structuring your business, so let’s take a look at what’s involved.

Sole Trader

If you’re planning to run the salon by yourself, you can register as a sole trader. This is the simplest option, but you’ll be personally liable for any debts or legal issues that arise. To register, you need to let HM Revenue and Customs (HMRC) know that you’re self-employed.

Limited Company

If you want to limit your personal liability, you can register as a limited company. This is a more formal structure, and it means your company is a separate legal entity from yourself. You'll need to register with Companies House, and there are additional paperwork and accounting responsibilities, so this may be best suited for a larger salon or one with multiple partners.

Once you’ve chosen your business structure, don’t forget to apply for a National Insurance number (if you don’t already have one) and keep detailed records of your income and expenses for tax purposes.

How much does it cost to open a hair salon?

The cost of opening a hair salon in the UK can vary considerably depending on the location, size, and the general vibe you're going for. Generally, you’ll need to plan for some initial startup costs and ongoing working capital.

You’ll probably be looking at around £20,000 to £50,000 for startup costs. This includes things like renting a space (which could range from £1,000 to £5,000 per month depending on where you’re based), buying salon equipment (like chairs, mirrors, hairdryers, and styling tools), and setting up the interior (which could be anything from £5,000 to £15,000). You’ll also need to cover the costs of salon products (shampoos, conditioners, hair dyes, etc.), insurance, and a business licence. Plus, if you're hiring staff, you’ll also need to factor in their salaries.

Working capital is the cash you’ll need to keep the business running in its first few months. This includes things like wages, utilities, inventory replenishment, and marketing. A good rule of thumb is to have enough working capital to cover three to six months of operating expenses, which could be around £10,000 to £20,000, depending on the size of your salon. It's always smart to have some extra buffer in case things take a little longer to pick up.

Financial projections are also a must, so aim to estimate your monthly revenue, operating costs, and profit margins. For example, if you’re charging an average of £30 per haircut and you expect to do 20 clients a day, that’s about £600 a day in revenue. Multiply that by five days a week and around four weeks a month, and you’re looking at around £12,000 in monthly revenue. From there, subtract your ongoing costs (rent, salaries, etc.) to determine your monthly profit.

Choose a location and get planning permission

When looking for the perfect location, there are some legal requirements for a hair salon to keep in mind.

• Zoning and Planning Permission: Before signing a lease or making any commitments, ensure your chosen premises are zoned for commercial use. Hair salons typically fall under Class E Use in the UK, but it’s always a good idea to check with your local council to ensure the space is suitable for running a salon.
• Building and Health & Safety Compliance: Your premises should meet basic building standards and health and safety regulations, including fire safety measures, accessibility, and sanitation. You may need to make alterations to the property to ensure it meets these requirements. Be sure to keep in mind the Health and Safety Executive (HSE) regulations when it comes to the safety of your staff and clients.

Once you've checked the legalities, consider the following tips to help you choose the right location:

• Know your market - research local demographics and target customers.
• High footfall and visibility - pick a busy, easily accessible spot.
• Check competition - avoid oversaturated areas unless you can stand out.
• Accessibility and parking - ensure good transport links and parking.
• Budget wisely - compare rent, business rates, and overheads.
• Surrounding businesses - nearby shops can help boost footfall.
• Space and layout - ensure enough room for styling stations and plumbing.
• Safety and security - choose a well-lit, secure area.
• Growth potential - consider future developments and expansion.

Get the necessary licences

Running a salon means you’ll need to comply with local regulations, including getting the necessary licences. Here's what to consider:

• Business Licence: In the UK, many local councils require businesses to apply for a business licence to operate legally. Check with your local council to see if this applies to you. Even if it’s not strictly required, it’s still good practice to keep everything above board.
• Beauty Treatment Licence: Some councils require special licences for treatments like laser hair removal.
• Music Licence: If you plan to play music in your salon, you must obtain a licence from PPL PRS Ltd. This covers the legal rights for playing recorded music in a public place, ensuring you’re not breaching copyright laws.
• Premises Licence: If serving alcohol or hot beverages, you may need a premises licence from your local council.
• Trading Name and Branding: While it’s not a legal requirement, you may also want to register your business name as a trademark to protect your brand.

It’s important to double-check your local regulations, as requirements can vary depending on where you are in the UK. For example, some councils may have specific rules about business signage or waste disposal.

Salon insurance

Arguably one of the most important steps in opening your hair salon is making sure you have the necessary insurance in place. Not only will it protect you, but it’s also a legal necessity in some cases.

Key insurance considerations for hair salons

• Public Liability Insurance: This insurance protects you if a client or member of the public is injured or their property is damaged while on your premises. Public Liability Insurance is a legal requirement in the UK if you have employees working for you.
• Employers’ Liability Insurance: This is also a legal requirement if you employ staff. It covers you if an employee is injured or becomes ill as a result of their work. You could face fines if your business is found operating without Employers’ Liability cover.
• Professional Indemnity Insurance: This covers you if a client makes a claim because they are unhappy with the service you’ve provided. For example, if a client claims they suffered a bad reaction to a certain treatment or cut.
• Contents Insurance: This protects your equipment and salon assets. From hairdryers to chairs and everything else in between, you’ll want to ensure everything is covered against things like theft and damage.

Get a quote for specialist hair salon insurance through Ripe today to see how much your protection could cost.

Health and safety requirements for a hair salon in the UK

When running a hair salon, adhering to health and safety requirements is important to keep you, your staff, and your clients safe.

• Salon Hygiene: Maintaining a clean and hygienic salon is essential. You’ll need proper cleaning schedules for the salon space and equipment (such as combs, scissors, and towels). Regular disinfection of surfaces, including shampoo stations, is also key to ensuring a safe environment.
• Handling Chemicals: If your salon offers treatments like hair colouring or perms, you must handle and store chemicals properly. Ensure that all staff are trained in the safe use and disposal of chemicals, and keep Material Safety Data Sheets (MSDS) for each product used.
• First Aid: It’s a good idea to have a first aid kit in the salon, and at least one staff member should be trained in first aid to handle any accidents.

Hiring Staff and Employment Law

When it comes to hiring staff, there are several requirements that you’ll need to keep in mind to remain compliant with UK employment law.

• Contracts of Employment: You’ll need to provide staff with clear employment contracts outlining their rights, pay, and hours of work.
• National Minimum Wage: Ensure you are paying at least the National Minimum Wage (or National Living Wage, depending on the age of your employees).
• Holiday and Sick Pay: Staff are entitled to holiday pay and sick pay, so be sure you’re aware of your responsibilities.
• Training and Certifications: It’s also important that your staff are fully trained and hold any necessary certifications for the services they provide. For example, hairstylists should have relevant qualifications or training in cutting, colouring, and chemical treatments.

Marketing your salon

Once everything is set up and legal, it’s time to attract customers to your salon. Marketing is key to growing your client base, and having a solid strategy can help you stand out in a competitive market.

• Social Media: Set up Instagram, Facebook, and even TikTok accounts to showcase your work. Hair salons thrive on visual content, so regularly posting before-and-after photos, hair tutorials, and client testimonials can help build your reputation.
• Email Marketing: Send your clients newsletters, special offers, and other emails to keep them engaged.
• Website: A website with online booking capabilities is super helpful and allows clients to book appointments even when you’re not working.

Final thoughts

Opening a hair salon is an exciting and rewarding experience but needs careful planning and an understanding of the requirements. However, with the right preparation, your dream salon can indeed become a reality.  

Specialist hair salon insurance through Ripe

Specialist hair salon insurance through Ripe includes up to £10m public and products liability cover as standard, as well as treatment risk cover to protect you against third-party claims for injury or property damage following hair and beauty treatments up to the value of £5m.

Learn more about hair salon insurance through Ripe or get a quick online quote today.