Business letter: format and content (with template)

There are certain elements that should be included in all official business correspondence. What defines a business letter and what guidelines should you observe when writing them? Find out here.

What is a business letter?

A business letter is any formal written communication between two business entities or professionals, addressed to a specific recipient or group of recipients. Business letters are used to establish, maintain, or manage business relationships and typically follow standard UK formatting and content guidelines.

What purpose do business letters serve?

In the UK, business letters serve as a formal and professional means of communication between organisations, clients, and stakeholders. Their key purposes include:

• Proposals and offers
• Order confirmations and enquiries
• Acknowledgements of receipt
• Invoices and payment receipts
• Pricing lists
• Order forms
• Personalised marketing letters (addressed to a named recipient)

The format of the letter—whether printed or digital (fax, email, etc.)—does not change its classification as a business letter. However, certain legal and informational requirements may apply depending on the business structure and context.

The following types of written communication are not classified as business letters:

• Internal company correspondence (e.g., emails or memos between departments, branches, or subsidiaries)
• Mass marketing communications (e.g., direct mail, generic advertising materials sent to large groups)
• Pre-filled business forms used in ongoing transactions (e.g., delivery notes, shipping notices, or collection notifications)

Business letters facilitate communication in both business-to-business (B2B) and business-to-consumer (B2C) interactions.

Business letters should be clearly distinguished from personal letters, which are intended for private, non-commercial communication.

Required information for business letters

Business letters are used to establish contact and maintain professional relationships and there are legal requirements in the UK regarding the information that must be included, depending on the business structure. To ensure clarity and professionalism, standard company details should be provided, including:

• Company name (as registered with Companies House)
• Business address
• Phone number & email address
• Website (if applicable)
• Date of the letter

Additional details may be required based on business structure or industry regulations.

Sole traders

Business letters from sole traders should include:

• Business name (if trading under a different name, the owner’s full legal name must also appear)
• Business address
• Contact details (phone number, email)

If operating under a trading name (DBA – ‘Doing Business As’), the owner’s personal name must also be included on all official business correspondence.

Partnerships (General & Limited Partnerships)

Business letters from general partnerships (GP) or limited partnerships (LP, LLP) should include:

• Registered business name
• Partnership designation (e.g., LLP, LP)
• Principal place of business
• The names of all partners (or an indication of where a list of partners can be found)

Limited Companies (Ltd)

For private limited companies (Ltd) and public limited companies (PLC), business letters must include:

• Company name (as registered with Companies House)
• Legal entity designation (e.g., Ltd, PLC)
• Registered office address
• Company registration number (as issued by Companies House)
• VAT number (if applicable)

It’s important to know that if a company is in liquidation, this must be stated in business correspondence.

How should a business letter look? Page structure and design

To ensure professional and effective communication, business letters in the UK should follow a standardised format. While there is some flexibility, using a professional structure enhances credibility and readability since poorly formatted letters may appear unprofessional and cause uncertainty.

Page format

Business letters should be formatted on A4 paper (210 × 297 mm) in portrait orientation. The recommended page margins are:

• Top margin: 2.5 cm
• Bottom margin: 2.5 cm
• Left margin: 2.5 cm
• Right margin: 2 cm

Font and typography

There is no legally required font for business letters, but professional, easy-to-read fonts are recommended. Common choices include:

• Arial
• Times New Roman
• Calibri
• Helvetica

The recommended font size is 11 or 12 points for readability. If using a custom corporate font, adjust the size to maintain legibility.

Letterhead design

A business letterhead typically includes:

• Company logo (optional but recommended)
• Company name
• Business address
• Phone number, email, and website (if applicable)
• Company registration number (if applicable)
• VAT number (if applicable)

Logos and design elements should be placed at the top of the page, ensuring they do not interfere with readability or printing.

Recipient address block

The recipient’s address should be formatted according to Royal Mail standards and placed two lines below the letterhead (or below the sender’s address if no letterhead is used).

Example:

John Smith Marketing Director ABC Corporation 123 Business Avenue London EC1A 1BB

Date placement

In UK business letters, the date is right-aligned and written in the following format:

• 20 March 2025 (Day Month Year, no commas)

The date should be one line below the sender’s address or two lines below the letterhead.

Subject line (optional)

A subject line is placed two lines below the recipient’s address and is usually bolded:

Subject: Proposal for Partnership Agreement

Salutation (greeting)

The greeting is placed two lines below the subject line (or recipient’s address if no subject is used). Formal business correspondence typically uses:

• Dear [Recipient’s name],
• Dear Mr./Ms. [Last name],
• Dear Sir/Madam, (only if the recipient’s name is unknown)

For ongoing business relationships, a less formal approach may be used:

• Hello [Recipient’s name],
• Dear [First name],

The UK standard is to use a comma after the salutation.

Letter body formatting

The body text should be:

• Left-aligned
• Single-spaced
• Divided into short, clear paragraphs
• Separated by blank lines

If a letter exceeds one page, the footer should contain page numbers (e.g., ‘Page 2 of 3’).

Closing and signature

The closing phrase is placed two lines below the body text and is followed by the sender’s signature.

UK Closing Conventions:

• Yours sincerely, → When addressing a specific named recipient
• Yours faithfully, → When using ‘Dear Sir/Madam’

After the closing, leave three blank lines for the signature and then type the sender’s name and title:

Yours sincerely, [Signature] John Smith Marketing Director ABC Corporation

Attachments & enclosures

If additional documents are included, an enclosure or attachment note should be placed one or two lines below the signature block:

Enclosures: Business Proposal, Contract Draft

Footer and contact details

The footer (if used) should contain:

• Company’s legal business name
• Registered office address
• Company registration number (if applicable)
• VAT number (if applicable)
• Phone number and website

Example:

ABC Corporation Ltd | Registered in England and Wales | Company No. 12345678 | VAT No. GB123456789 | Registered Office: 123 Business Avenue, London EC1A 1BB | Tel: +44 (0)20 7946 0123 | email@abc.co.uk | www.abc.co.uk

Business letter – downloadable template

Here you can find our business letter template as a Word file for download:

The dos and don’ts of writing a business letter

Dos

Be clear and concise

• Business letters, whether printed or emailed, should be direct and to the point.
• Most recipients receive multiple business communications daily, so ensure your message is brief, clear, and purposeful.
• Use a concise, relevant subject line for clarity.
• Business letters should not exceed one A4 page (210 × 297 mm) unless absolutely necessary.
• For complex information (e.g., tables, figures, or invoice details), include attachments instead of overloading the main letter.

Use a personal greeting

• Address the recipient personally whenever possible.
• If necessary, research the correct name and spelling of the contact person.
• If the recipient’s name is unknown, use a neutral but professional greeting, such as:
  • Dear Hiring Manager, (for job applications)
  • Dear Customer Service Team, (for customer enquiries)
  • Dear Sir/Madam, (if no specific contact is available)

Use a postscript (PS) strategically

• A postscript (PS) was traditionally used in handwritten letters but still serves a purpose in modern business writing.
• In a business letter, use a PS to highlight important information or provide an extra note, such as:
  • A special offer or promotion
  • A website link for more details
  • A friendly reminder or follow-up request
• The PS should be brief and relevant to avoid distracting from the main message.

Don’ts

Phrases and outdated formulations

Write business letters in a modern, recipient-focused style. Avoid clichéd phrases, formulaic blocks of text, or outdated expressions. Use clear, direct language without unnecessary embellishment.

Remember that your business correspondence reflects your company’s image. If you bore clients or partners with stale or bureaucratic language, you miss an opportunity to make a positive impression. A well-written letter, tailored to the recipient, signals genuine interest and will be remembered.

Spelling and grammar mistakes

Poor spelling, punctuation or grammar appears unprofessional. This applies not only to the content but also to layout and structure. Always proofread your business letters carefully, or seek professional support if needed.

Negative language

Avoid using negative phrasing or unnecessary negations. Even bad news can usually be conveyed more positively. Focus on offering options rather than blocking the conversation. ‘Let me look into that and get back to you shortly.’ sounds a lot more positive than ‘Unfortunately, I can’t answer that.’ It’s important to replace wording that sounds dismissive or problem-focused with a friendly, constructive alternative—without sugar-coating the message.

Passive voice

Passive constructions often hide who is responsible and can come across as vague or unhelpful. Active voice makes your message clearer and more engaging.

Compare:

‘Your request will be processed as soon as possible.’

vs.

‘My colleague, Mr Smith, will process your request as soon as possible.’

The second version feels more personal and reassuring because the reader knows who is taking responsibility.

Overly complex sentences

Long, convoluted sentences hinder understanding and weaken communication. Replace tangled sentence structures and excessive subordinate clauses with clear, straightforward statements.

Please note the legal disclaimer for this article.