A private company limited by shares is one of the most popular ways to run a UK business. It can protect your personal finances, expand your tax-planning options, and make your business appear more established to clients and lenders.
But it’s not a perfect fit for everyone. Limited companies come with stricter rules, more admin, and more information on public record.
In this guide, you’ll learn what a private limited company is, how it compares to a sole trader structure, the main advantages and disadvantages, when it makes sense to switch, and the practical steps to register a company.
Key takeaways
- Some of the key advantages of operating as a limited company include flexible ownership, limited personal liability, tax planning, and professional status.
- On the other hand, registering a limited company involves an incorporation fee, adherence to strict rules and regulations, and ongoing filing and reporting requirements.
- You should base your decision on your personal circumstances and preferences to choose the best structure for your business.
What is a private company limited by shares?
A private company limited by shares is one of the most common business structures in the UK. It’s a separate legal entity from the people who own and run it, meaning it can enter into contracts, hold assets, and be responsible for its own debts.
Limited company names must be unique. That means you can’t register a name that’s already taken, or one that’s too similar to an existing company name. When you register a company, no other incorporated business can trade under the same name.
Ownership is split into shares. The people who own those shares are the shareholders (also called members). The company is managed day to day by at least one director. As a shareholder, your liability is usually limited to the unpaid value of those shares, which helps protect your personal finances if the business runs into trouble.
- The difference between directors and shareholders
- Registering a company: a simple step-by-step guide
- Share transfers from one person to another
What is a sole trader?
A sole trader is someone who runs a business as a self-employed individual, rather than through a separate legal entity. In practical terms, you are the business. You keep all the profits, make all the decisions, and you can take money out whenever you like.
With this structure, there’s no legal separation between you and the business, so you’re personally responsible for any debts or legal claims.
Financial advantages
The most common reasons UK entrepreneurs choose to trade as a limited company are tax efficiency and protection of their personal finances. We’ll break down each of these below, along with a few other financial benefits compared to a sole trader structure.
Limited liability
One of the biggest benefits of setting up a company is limited liability protection. In other words, your personal finances and assets receive protection if the company runs into financial trouble.
Any debts, losses, or legal issues are the company’s responsibility. This is because a limited company is treated as a separate legal entity – essentially, a legal ‘person’ in its own right. So, the company is completely distinct from its members and directors.
If the company goes insolvent and it can’t pay its bills, you’re normally only responsible for the unpaid amount of your shares. Beyond that, your personal assets are off-limits to creditors and debt collectors.
It’s common practice to set the nominal value of shares (or guarantees) at £1. This means your liability could be as little as £1, depending on the number of shares you own or the guarantee amount you provide. However, you may be further liable in rare instances, including:
- Fraud
- Wrongful trading
- Breaching your director’s duties
Likewise, if any members or directors sign a personal guarantee, their personal finances will be at risk. This is a legal agreement – sometimes used to secure a business loan or a commercial lease – that makes you personally responsible for repaying the company’s debt if it defaults or becomes insolvent.
Tax efficiency
Running a limited company allows you to pay yourself through salary and dividends, which can be more tax-efficient than sole trader income.
Example: How Chinelo earns a tax-efficient income
Let’s use an electrician called Chinelo as an example. We’ll break down how he earns a tax-efficient income as the sole member and director of a limited company.
Step 1: Take a small director’s salary
Chinelo pays himself a director’s salary of £12,570 (or £1047.50 per month). This is below the National Insurance Contributions (NIC) Primary Threshold, which means:
- Chinelo doesn’t have to pay Income Tax on his salary.
- He doesn’t have to pay employee Class 1 NICs.
- He can reduce his Corporation Tax bill because wages are a deductible expense.
Step 2: Supplement with dividend payments
Chinelo needs more than £1047.50 per month to cover household bills and other living expenses, so he tops up his income with dividends. These are paid from his limited company’s profits (after Corporation Tax). Here’s why that’s a win:
- Chinelo won’t pay any personal tax on the first £500 of dividend income because of HMRC’s annual dividend allowance.
- He’ll pay dividend tax on the rest at a lower rate than he would if he were paying Income Tax.
- Dividend payments are flexible, so he can choose to take more money out of the business in some months than others.
Compare Income Tax and dividend tax rates from April 2026:
| Band | Income Tax rate | Dividend tax rate |
|---|---|---|
| Tax-free allowance | £12,570 | £500 |
| Basic (Paid on income between £12,571 and £50,270) | 20% | 10.75% |
| Higher (Paid on income between £50,271 and £125,140) | 40% | 35.75% |
| Additional (Paid on income over £125,140) | 45% | 39.35% |
With this strategy, Chinelo makes the most of both tax-free allowances and the lower tax rate on dividend income. He runs monthly payroll through Xero to fulfil the company’s responsibilities as an employer and submits an annual Self Assessment tax return to report his dividend income to HMRC.
Step 3: Reinvest surplus cash
Rather than withdrawing all available profits from his limited company, Chinelo only ever takes what he needs to cover personal expenses. After paying himself and setting aside money for Corporation Tax, he transfers all surplus cash into an instant-access business savings account. That’s a good strategy because:
- He earns interest on the funds retained in the business
- He avoids being pushed into a higher Income Tax bracket
- There’s money available to cover operational costs like software, subscriptions, business travel, and professional fees.
- The company’s finances look healthier on paper, which is contributing to a better business credit score and greater access to funding.
Corporation Tax Calculator
There are plenty of different strategies for running a tax-efficient business, so make sure you consult an accountant about the best setup for your individual circumstances.
Access to investment and funding
There may come a time when you need money to keep your business running smoothly (working capital). You may also want funding to scale (growth capital). A private company limited by shares is in a much better position than a sole trader in both of these scenarios.
Because limited companies can have multiple members, you can sell shares in the company to new investors. They become shareholders, providing a financial investment in exchange for a share of the profits and some degree of control. This simply isn’t possible with a sole trader structure.
In general, limited companies also have access to more borrowing options (loans, grants, tax credits) than sole traders, and certain banks will only lend to incorporated businesses. As we’ve already discussed here, you won’t be personally responsible for paying back money that your company borrows, unless you’ve signed a personal guarantee.
Pension contributions
If you’re a director, a limited company can also give you a handy way to pay into a pension using the company’s pre-tax profits.
Instead of being limited to personal contributions from your salary or other income, your company can make pension contributions as the employer. Employer pension contributions are usually treated as a business expense, which can reduce your company’s Corporation Tax bill.
Whether this is the right (and most tax-efficient) strategy depends on your circumstances, so speak to an accountant or tax specialist before you go down this route.
Business credibility
Trading as a limited company, rather than as a sole trader, can make your business appear more established from the outside. A big reason for that is that limited companies are more closely regulated and must follow stricter rules.
They also come with more detailed accounting and reporting requirements, as well as a wider range of legal responsibilities. On top of that, key company details and accounts are publicly available on the Companies House register.
That extra transparency, along with a more professional image, can help in a few practical ways, including:
- Attracting new clients and investors
- Accessing a wider range of borrowing and lending options
- Expanding into new locations or markets
- Building a stronger, more trusted brand
- Competing more confidently with other businesses in your sector
- Even if the day-to-day work, ownership, and management are basically the same, a limited company is often seen as the more credible setup.
Working with bigger clients
In many sectors, a limited company is perceived as more credible and less risky than a sole trader – particularly in IT, finance, and contracting – where some clients issue contracts only to incorporated entities. Claire Hopper, a graphic design consultant based in London, explains:
One of my early freelance clients was a smaller IT consulting and services company, but they were an offshoot of a large tech provider. They would only deal with contractors who had a limited company to ensure that their financial compliance was above board. That was the deciding factor for me to go for limited company structure.
This is often the case because the contracts carry more risk. If you’re handling sensitive information, delivering complex IT projects, or taking on large construction work, clients may want the extra reassurance that comes with dealing with a company. If something goes wrong and they need to make a claim, there’s a clear legal structure in place.
In practice, sole traders are often not considered for this kind of work. So, if you want to go after bigger contracts, operating through a company can help you stay competitive.
Flexible ownership and succession opportunities
In a sole trader structure, you are the business. It can’t operate without you, and you can’t hand it over to someone else to run – or bring other people in to share the responsibility and profits. By contrast, a limited company structure is extremely flexible regarding who can own or control the business and what their financial rights are.
A private company limited by shares or guarantee must have at least one director who manages the company. It must also have at least one member (shareholder or guarantor) who owns at least one share or has provided a guaranteed sum to the company.
Here’s where the flexibility comes in:
- The director and member can be the same person or different people, which means you can set up a limited company by yourself or with others.
- Members can remove or appoint new directors, meaning you can bring in someone else to run the business for (or with) you.
- You can issue shares to new investors or admit new guarantors at any time.
- The number of shares you give can be varied, providing different proportions of ownership
- Shareholders can sell or transfer all or part of their shares to another person.
- Shareholders can hold shares in different share classes with varying rights (if the articles of association allow it).
This structure gives you the freedom to remain the sole member and director of your limited company for its lifetime, or scale to a much larger operation with sophisticated management arrangements.
Disadvantages of a limited company
There are some disadvantages to setting up a limited company, though many business owners would argue that the potential benefits outweigh these.
Administrative and legal responsibilities
One of the main reasons someone might be daunted by the prospect of registering a limited company is that it comes with more administrative and legal responsibilities than registering as a sole trader.
Let’s look at a few examples:
| Factor | Details |
|---|---|
| Cost | You must register the company with Companies House and pay an incorporation fee. |
| Name | There are stricter rules to follow for naming your company than if you were a sole trader. |
| Address | You need a registered office address in the UK jurisdiction where your company was incorporated. |
| Restrictions | You can’t form a limited company if you’re an undischarged bankrupt or a disqualified director. |
| Disclosure | Company information and some of your personal details will be publicly available on the Companies House Register. |
| Accounting | You may need an accountant because the tax and accounting requirements are more complex and time-consuming. |
| Compliance | You’ll have more filing and reporting to handle, including annual accounts, a confirmation statement for Companies House, and a Company Tax Return and accounts for HMRC. |
| Earnings | You must follow strict procedures when withdrawing money from a company for personal use. |
| Records | You need to keep formal records, including meeting minutes and key decisions made by directors and shareholders. |
| Updates | If you change any of your company details, you’ll need to tell Companies House. |
| Responsibility | You’ll have greater legal responsibility as a director of a limited company than if you were a sole trader. |
These requirements can feel daunting at first, but you can get help from an accountant or company secretary provider to save you the time and admin hassle. Robyn Schuleman, a freelance content writer, explains:
Choosing to run my freelance business as a limited company comes with a lot of responsibilities to stay on the right side of Companies House and HMRC. I knew that going in, so I hired an accountant straight away to help.
The roughly £80 a month I spend on accountant’s fees is worth it when I look at the size of the businesses willing to work with me, even though I’m just a one-man band.
Who should avoid this structure?
A private limited company is highly flexible and scalable, but it isn’t for everyone.
If you want the simplest setup with the least admin, a limited company may not always feel worth it. You’ll have more ongoing filing, reporting, and record keeping to stay compliant with HMRC and Companies House. And the accounting side is usually more time-consuming than it is for sole traders.
If your profits are small or your business is more of a side hustle for now, the extra costs (like incorporation fees and an accountant) can sometimes outweigh the tax and credibility benefits. In a lot of cases, a limited company makes more sense once you’re earning enough for the extra costs and compliance work to feel worthwhile.
If you don’t want any of your personal details in the public domain, you may prefer a sole trader structure because you won’t have to disclose information on the Companies House register. And, if you’re an undischarged bankrupt or disqualified director, a limited company structure simply isn’t an option.
When should you switch from sole trader to limited company?
Like some first-time founders, you might find the best time to incorporate isn’t day one. Instead, it’s the point where the benefits of a limited company start to outweigh the extra admin.
Signs you’re ready to incorporate
Here are the most common signs it’s time to level up from sole trader to limited company.
- You’re taking on a bigger risk. If contracts are higher-value, the work is higher-stakes, or you’d struggle if a claim went against you, limited liability protection can be a big reason to move away from sole trader status.
- You don’t need to withdraw everything you earn. If you’re building a cash buffer, saving for tax, or reinvesting into the business, a limited company can give you more flexibility around what stays in the business versus what you take personally.
- You want to be more tax efficient. Limited companies offer more options for how you pay yourself and plan your withdrawals (for example, salary and dividends), depending on your circumstances.
- You want to grow your business. When you’re ready to hire, delegate delivery, or bring in leadership-level people, the limited company structure is built for that.
- You’re running into commercial barriers. Some organisations prefer working with incorporated businesses, and a limited company can make you look more established on paper.
Example: When Amir scaled from sole trader to director
Amir is an IT contractor who started as a sole trader because it was quick, cheap, and easy to manage. As his client list grew, he started landing larger projects involving sensitive data and tighter delivery deadlines. He also noticed he didn’t need to take every pound of profit out each month, but as a sole trader, he was still taxed on profits regardless.
The immediate impact of incorporating
Amir set up a limited company, so the business became a separate legal entity, and he had more confidence in taking on higher-risk work. He also started paying himself more systematically, taking what he needed and leaving the rest in the company. That helped him build a cash buffer for quieter months, rather than constantly drawing it out as personal income.
How it helped Amir scale his business
Once bigger projects became the norm, Amir hit a capacity ceiling. Because he was operating through a company, it was straightforward to hire support and run payroll properly by registering as an employer.
He brought in a part-time developer to expand delivery capacity, then hired an admin assistant to keep client comms and invoicing running smoothly. As the business matured, he appointed a second director to share responsibility and keep decisions moving when he was tied up on delivery.
The overall impact
Amir’s business progressed from solopreneur to a small team with a healthier cash position and more headroom to grow. The admin increased, but with a simple process and accounting support, it stayed manageable.
Limited company vs sole trader: a side-by-side comparison
A limited company can give you liability protection, flexibility around tax planning, and a more credible profile for bigger clients. In return, you take on extra admin and stricter rules. A sole trader setup is usually the quickest and simplest way to get started, but you don’t get the same separation between you and the business.
Here’s a side-by-side comparison to help you decide which structure is the best fit.
Tax, income, and personal liability
As a sole trader, taking money out of the business is simple – though not always tax efficient. As a company director, you gain tax flexibility and liability protection.
| Factor | Sole trader | Limited company |
|---|---|---|
| Personal liability | Con: Unlimited personal liability for debts and legal claims | Pro: Limited liability protection for shareholders |
| Tax on profits | Con: You pay Income Tax and NICs on all business profits | Pro: Company profits are taxed under Corporation Tax rules, with more scope for tax planning |
| Tax rates | Con: Income Tax between 20% and 45% (19% to 48% in Scotland) | Pro: Often more tax efficient overall, depending on how you pay yourself |
| Taking money out | Pro: All profits are yours as soon as you earn them. | Con: You need to follow formal procedures to take money out |
| Deferring income and reinvesting | Con: No option to defer withdrawals or reinvest surplus cash without paying tax | Pro: You can leave profits in the company and withdraw them later |
| Pension options | Con: Pension options are less tax-efficient | Pro: Employer pension contributions can be tax-efficient in the right circumstances |
| Sharing profits with family | Con: No option to issue profits to a spouse or family member as tax-free dividends | Pro: You can pay dividends to shareholders (including family members, if set up properly) |
Startup costs and admin differences
Sole traders have fewer startup costs and less admin to worry about. Limited companies benefit from business credibility, succession planning options, and greater access to funding.
| Factor | Sole trader | Limited company |
|---|---|---|
| Setup | Pro: Quick and easy to set up online | Con: Must incorporate at Companies House |
| Incorporation fees | Pro: No fees to register | Con: You’ll need to pay an incorporation fee to Companies House |
| Ongoing admin | Pro: Minimal paperwork and record-keeping | Con: More filing, reporting, and record-keeping requirements |
| Accounting | Pro: Minimal accounting costs and requirements | Con: More complex accounting often needs professional support |
| Public disclosure | Pro: No requirement to disclose accounts or personal details on public record | Con: Company details and accounts appear on the public register |
| Records for inspection | Pro: No need to make business records available for public inspection | Con: More formal records and statutory compliance |
| Address | Pro: No need to have a registered office or service address | Con: You must have a registered office (and service addresses apply) |
| Business name | Pro: Fewer restrictions when choosing a business name Con: Anyone can use the same name and register it before you |
Con: Stricter rules on company names Pro: No one else can register or trade under that name |
| Ownership | Con: Can only be set up and owned by one person | Pro: Can have multiple owners and investors |
| Funding | Con: More challenging to raise capital and borrow money | Pro: More borrowing options and the ability to raise funds through shares |
| Credibility | Con: Professional status can be seen as lower than that of a company | Pro: Often seen as more established and credible |
| Working with bigger firms | Con: Many firms refuse to do business with sole traders | Pro: Some firms prefer or require incorporated businesses |
Limited company or sole trader?
The sole trader structure can be a good fit for many small business owners, especially when you’re getting started and want to keep things simple. But as your business grows or your plans get bigger, using a limited company is the smarter move. That’s often when you want limited liability protection, more flexibility around tax planning and reinvesting profits, or a more established setup to win bigger clients.
The best choice still comes down to your own circumstances, your income, and the level of risk you’re taking on. If you’re not sure which route is right, it’s worth speaking to an accountant or adviser to decide with confidence.
Got a question about anything we’ve covered? Leave a comment below. And if you’re ready to register a limited company, head to the Rapid Formations homepage to get started by checking your company name and choosing a formation package.
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Comments (27)
Thanks for the article! It was helpful learning about the advantages of a limited company for my own expert financial advice UK business.
Thank you for your kind comment!
We are so pleased you enjoyed our recent article.
Kind regards,
The Rapid Formations Blog
Your article sheds light on the advantages of public limited company registration. It’s an opportunity for businesses to showcase their potential, access diverse sources of capital, and raise their profile in the competitive market. Thank you for sharing such information about Public Limited Company.
Thank you for your kind words.
Kind regards,
The Rapid Formations Team
Generally I don’t learn post on blogs, however I would
like to say that this write-up very compelled me to take a look at and
do so! Your writing style has been amazed me. Thank you, very nice article.
Thanks for your kind comments – we’re glad you are enjoying our blog articles.
Kind regards,
The Rapid Formations Team
Hello,
I’m employed full time but also want to setup a gardening business? I do currently submit a separate self assessment for claiming back work expenses but just wanted to know which was best for my situation a sole trader or ltd company. I will only be turning over around 2k initially
Also if I gkk ok into the higher rate tax bracket will I have to pay more than the 19% corporation tax
Thank you for your kind enquiry, Mitch.
With regards to paying Corporation Tax – there are no ‘bandings’ for Corporation Tax and therefore all relevant profits are taxed at the same amount. Please note that from April 2023 Corporation Tax is due to rise to 25%.
With regards to what is better for you – this is a decision you will need to make yourself. You will probably need to factor in the annual filing requirements costs into whether or not running via a limited company is better for you or not. In general terms, the more money made via a self employed venture, the more beneficial a limited company is, because the annual filing requirement fees (including accountancy fees) reduce as a % of the revenue earnt. In addition, the risk is limited to the liability of the shareholder. We would suggest you make a projection as to how likely it is that your income is going to rise via this venture to well beyond £2,000, and then make a decision based on this.
You should also factor in that many customers prefer to deal with a limited company rather than a sole trader, and that being a sole trader may lead to you losing custom due to lack of trust.
We trust this information is of use to you.
Kind regards,
The Rapid Formations Team
Hi,
I am impressed with the answers you have supplied to others, and hope you can help us.
We, husband and wife,, are considering the possibility of setting up a non-profit making limited company for the purpose of owning our road, which is not adoptable by the local council.
We and neighbours have spent a lot of money improving the road, which now seems at risk of damage from a new development nearby, so we need insurance and legal status. If we have, say, 3 directors with £1.00 shares each, would this basis be practical in law?
We would then need to apply for the deeds from, I think, Chancery Division.
My husband is currently Chair of our Residents Association but this is likely to disband soon.
Dear Sheila
Thank you for your kind words. Unfortunately we cannot advise on the structure of any business as we are not professional advisors and we would advise that you speak to an accountant or lawyer to get the correct advice to deal with this more unusual business concept.
Best Regards,
What hapoens with the state pension siruatuon when you become a ltd company.
Dear Am Baio,
We are not pension advisors however if you are receiving state pension and form a limited company then you would declare the state pension on a tax return along with any income taken from the limited company.
Kind Regards,
Rapid Formations Team
I am changing from sole trader to limited company is it possible to retain my gross payment status for tax purposes?
Dear Stan,
Thanks for your message.
We are not experts on Construction Industry Scheme tax so I would advise you either call HMRC on 0300 200 3210 or speak to an accountant.
Kind Regards
Ohh thanks very much for advising i think limited companies has more advantages than sole bcs personal property are secured.name of company is boomed etc
Must be officially incorporated at Companies House
Required to disclose personal and corporate information on public record.
can you explain more on those two disadvantages of a limited company
Dear Lee,
Thank you for your message. The two disadvantages you have highlighted are very similar in nature. The point being made is purely from a privacy perspective in that if you were to set up a business as a sole trader or partnership (not Limited Liability Partnership), your information would remain private, whereas limited companies have to comply with the Companies Act which requires certain details to be available to the public through the Companies House website (such as the names of directors, the company address etc).
Best regards,
Rapid Formations Team
If I am a sole trader registered for vat and change to a limited company do I still have to be vat registered as a limited company ? thanks for your time,
Kind regards,
Carl
Hi Carl,
If your annual turnover is less than the VAT registration threshold (currently £83,000), VAT registration for your new company is entirely optional. If you’re changing your existing sole trader business to a company and you would like to be VAT registered, you should actually be able to transfer your current VAT registration rather than having to de-register and re-register: https://www.gov.uk/government/publications/vat-request-for-transfer-of-a-registration-number-vat68
I always find it best to speak to HMRC directly in situations like this, so I would advice calling the VAT helpline to discuss your options. You can find the contact details here: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/vat-enquiries
I hope this helps!
Best wishes,
Rachel
Many thanks for your valuable advise you give people.
I am forming a ltd company where am a sole director n shareholder. Please advise in the following;
Does nominal capital of kes 100k mean I have to contribute from my pocket?
Does fees or charges by advocate form part of the nominal capital?
In case I need more capital to run day to day activities and pay salaries, can I borrow from a friend?
Can I dictate the salary I want and when can I start paying myself?
Hi Peter,
You’re most welcome – I’m pleased to hear that you find the advise useful.
1. If you set the nominal capital of your shares at £100,000, you will be personally liable to contribute £100,000 to the company if it is unable to pay its debts. You would not have to contribute that sum of money initially, unless you were using it as start-up capital, though I would strongly advise against setting such a high nominal capital. Perhaps consider issuing 10 or 100 shares with a nominal capital of £1/share – this is a popular choice, but it is entirely up to you and something you may wish to speak to an accountant or professional advisor about before making a decision.
2. Fees and charges paid to solicitors/accountants/advisors are deductible expenses that must be included in your accounts if the payments are made from your company’s bank account. These expenses have nothing to do with nominal share capital.
3. It is solely your decision if you wish to borrow money from friends or family, but you must record this income and report it in your accounts.
4. You can choose how much to pay yourself as a salary and you can do this as soon as the company has available funds. Your director’s salary will be a tax-deductible expense for the company.
I would strongly urge you to seek professional advise from an accountant regarding these matters, especially if you are considering investing a significant sum of money in the business. I’m not an accountant, so I’m afraid I cannot provide any specialist advise.
Best wishes and good luck with your new business!
Rachel Craig
Hi Rachel,
I run a sole trader business and we are going to exceed VAT Registration Threshold so I am going to change to Ltd Co. before we register for VAT.
With this in mind, can you advise whether I will be required to register for VAT as a Ltd Co. immediately or is the turnover as a sole trader disregarded due to the change of legal entity (and then wait until the turnover as Ltd Co. nears VAT Threshold)?
I have also invested around £15,000-£20,000 over the past few years on plant which would be VAT deductible so would not want to lose out on the opportunity to claim this back… in which case should I register for VAT as a sole trader and delay Ltd Co. status for a year or two?
Hi Ron,
Thanks for your message.
This is quite a complex situation so I’m afraid I am unable to give you a concise answer. I would advise contacting HMRC directly to explain what you wish to do and find out what your options are.
Sorry I cannot be of more help.
Best wishes,
Rachel Craig
When changing from a sole-trader to a limited company who do I need to inform.
Hi Richard,
Thanks for your email.
You need to inform Companies House, HMRC, your clients, suppliers and all business-related service providers.
To register your existing business as a limited company, you must complete an application for Companies House. It’s very easy and only takes a few hours. Find out more here: https://www.rapidformations.co.uk/help-centre/steps-to-forming-a-company/
You will also need to tell HMRC that you are stopping self-employment. Click this link for guidance on how to do that: https://www.gov.uk/stop-being-self-employed
When your company is registered and you are ready to start trading through it, you should update your website and business stationery with the required details. You can find out about these legal requirements here: https://www.gov.uk/running-a-limited-company/signs-stationery-and-promotional-material
You may wish to open a business bank account in your company name, so you will have to inform service providers and suppliers about your new bank details. This will also affect the information you include on your client invoices.
I hope this information helps but please get back to me if you want to know anything else or need help setting up your new company.
Best of luck,
Rachel
can you help me set up as a sole trader?
Hi Ranjit,
We do not deal with sole trader businesses because they do not have to be registered at Companies House. However, it’s really easy to set up as a sole trader. You can do it online via HMRC. This link will explain how to do that: https://www.gov.uk/set-up-sole-trader/overview
Please let me know if you need anymore help.
Best wishes,
Rachel