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Choosing your structure: sole trader vs. limited company

Choosing between operating as a sole trader or incorporating as a limited company will shape your day-to-day taxes, legal risks, and administration. To explore the pros and cons of each setup in more detail, you can read Tide's guide on  sole trader vs limited company. If you're ready to incorporate as a limited company, Tide gets you set up for just £14.99.

 
Sole Trader
Get a sole trader account
Limited Company
Set up a limited company
Key Differences
Financial risk
 Personally responsible for business debts (no legal distinction between owner and business). Limited liability; personal assets are generally protected if the company fails.
How you’re taxed
 You pay Income Tax on all business profits. Simple, but less tax-flexible as profits grow. The company pays Corporation Tax. More flexible; you can mix salary and dividends to lower your tax bill.
Credibility
 Ideal for local services, freelancers, or small businesses. Some corporate clients prefer LTDs. Often viewed as more established. Essential if you plan to scale, raise funding, or pitch to large corporations.
Admin and paperwork
 Minimal. Easy to set up and you only need to submit a simple annual Self Assessment tax return. Higher. Requires registration with Companies House, annual accounts, confirmation statements, and payroll management.
Business banking
 Optional but recommended. You can legally use a personal bank account (though a separate account keeps things clean). Legal requirement. The business must have its own dedicated business bank account.

Why UK businesses use our company formation service

Tide is here to support you in starting your own limited company. With hundreds of thousands of businesses registering their company with each year, we want to make company formations as easy as possible.

Good value

Pay £14.99 instead of the usual £100*, and we’ll get you set up and verified. We also don’t charge monthly fees on your free business account.

Fast

Registering your limited company takes minutes, and you could receive your certificate of incorporation within a day.

Secure

We’re a Companies House Authorised Corporate Service Provider (ACSP), plus we're FSCS-protected, meaning you’re in safe hands.

Register a company

*Get your company registered for just £1 when you sign up to Tide and subscribe to Company Secretary. Then for the following 11 months, pay £12.50 + VAT/month for secretarial services.

Simple pricing, discover the right option for you

Register your company for just £1 when you subscribe to Company Secretary or pay £14.99 to get incorporated without.

Business registration

Save £85 when you register with Tide

Get your new company set up and receive a free business bank account within one business day.

£14.99 (stand-alone offer)

Register your company for just £14.99 (saving you £85)

Emailed Certificate of Incorporation

Free Tide Business Account & PAYE registration with HMRC

Get started

Company Secretary

Get incorporated for just £1 when you subscribe

Manage Companies House filings, track deadlines and keep your records accurate – all in one subscription.

£12.50 + VAT/month

Register your company for just £1 (saving you £99)

Emailed Certificate of Incorporation

Free Tide Business Account & PAYE registration with HMRC

File Confirmation Statement

Unlimited Director/PSC address and name changes

Receive your Memorandum and Articles of Association, Share Certificates, and Company Register.

Get started

Limited company registration made easy

Register a company with us for £14.99 £100

We’re a Companies House authorised UK company formation agent, and will fund almost all of the incorporation fee for you.

Get up and running in no time

Set up a limited company and receive your certificate of incorporation within one business day. Once you’re set up you can access your new bank account in the Tide app.

Trusted by over 2 million businesses

As the leading company formations agent in the UK, we support all small businesses, and aim to give business owners the time back to grow and scale.

Register your company today and join over 2 million business owners!

Serving over 15% of all SMEs in the UK, helping contractors, freelancers and scaling businesses get back to doing what they love.

Company registration in five simple steps

  • Check your company name's availability, then complete Tide’s online IN01 application to register with Companies House.
  • Enter your business and personal details, including your SIC code(s) and PSC details.
  • Verify your identity in line with Companies House regulations.
  • Receive your limited company Certificate of Incorporation, Memorandum and Articles of Association, Share Certificates, and Company Register.
  • Get a free business bank account, plus an optional Virtual Office Address.
Register a limited company

Companies House identity verification

You now need to verify your identity with an ACSP. Tide is now an Authorised Corporate Service Provider (ACSP) which means we can verify your identity on behalf of Companies House.

Verify your identity

Whether you just registered a company with us or are an existing Director or shareholder, we can verify your identity.

Store your verification code

Once you’ve been verified, Companies House will issue a personal code which will be stored securely in your account.

File confirmation statement

When you’re doing your company filings your personal code will be integrated, making the submission process seamless.

How identity verification works

Everything you need to get your new business online

Promote your business with a one-month free trial of Own Website from Tide - the perfect tool for anyone looking to build their online presence and reach more customers.

  • Build a professional website with an easy-to-use site builder, domain registration, web hosting and email addresses - all in one place.

  • No coding or design expertise needed - just you and your laptop, mobile or tablet.

  • Manage everything from one secure, reliable platform.

 Get online with Tide

A business bank account included with every UK company registration

If you register a limited company, you are legally required to use a business bank account to keep the company’s finances separate from your personal money. 

Set up a limited company and open a business bank account in one step with Tide, so you’re ready to start trading right away.

Set up a new limited company with a Virtual Office Address

At Tide, you can choose to add a Virtual Office Address when you register a limited company – keep your home address private and use a registered address based in Central London. 

Your virtual office gives you a permanent address, saving you time on admin. Even if you’re a digital nomad, we can scan and email your mail to you, so you’ll never miss an important letter!

 Learn more

What you need to register a limited company

Unique company name

Use our search tool to instantly check if your company name is available. Alternatively, use our Company Name Checker to check up to eight business names at once.

Registered office address

Ensure you have an address within the UK for official communications to be sent to. If you don’t have one, you can opt for a Virtual Office Address during sign up.

Director and shareholder information

You'll need the name, nationality, date of birth, address and occupation of the Director. If there's more than one, this information can be added later with Companies House.

 Register a limited company

What happens after you register?

Once your company is registered, there are several legal and administrative steps to complete to stay compliant with HMRC and Companies House. Here's what you need to do next — and how Tide can help you manage it.

Corporation tax

Register with HMRC for corporation tax within 3 months of starting to trade.

VAT registration

Register for VAT if your turnover is expected to exceed the threshold.

PAYE setup

Set up PAYE if you plan to employ staff.

Confirmation statement

File your confirmation statement with Companies House every year.

Statutory registers

Keep your statutory registers up to date and accurate.

Access a range of smart business tools when you register a limited company

Business Bank Account

Get a business current account instantly, packed with tools to manage transactions, receive payments, and keep your business running smoothly.

Learn more

Business Savings Account

Get a dedicated savings account to grow your savings. Explore our range of instant saver rates.

Learn more

Tide Card Readers

Sell anytime, anywhere, with our POS devices. Benefit from unlimited mobile data, low transaction fees, and fast payments – straight into your Tide account within 1-3 business days.

Learn more

Tide Accounting

Get a free trial on our ‘Admin Extra’ accounting plan for the first 2 months - simply open a Tide account to be eligible and enjoy seamless bookkeeping and invoicing.

Learn more

Tide Premium Plans

Upgrade to one of our Premium Plans to enjoy free transfers to other accounts, 24/7 priority support and much more. Your first month is on us.

Learn more

Virtual Office Address

Enhance privacy and reputation with a prestigious Central London virtual office address. We'll handle and forward your official mail.

Learn more

Smarter banking starts now with Admin Extra from Tide.

Level-up your banking and accounting with a two-month free trial of Admin Extra. Simply open a Tide account to be eligible. Streamline business operations, get paid faster and submit taxes with ease — all from the Tide app. T&Cs apply.

Am I eligible to register a limited company?

Registering a limited company with Tide is easy. Apply online for just £14.99 and receive your Certificate of Incorporation within one business day - plus, you'll get a free business bank account.

You must be over 18

Have a UK-based business

Show valid photo ID

Verify your personal and business details

Register a limited company

Charlotte Davitt-MillsShotley Vineyard

“Tide works in harmony with your business. It's really user friendly and it's there alongside you every step of the way, helping you grow your business”

Learn more about registering a company

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Company Registration FAQs

A limited company is a business structure that's legally separate from its owners, and comes in two main types: limited by shares (the most common, used by most small businesses) or limited by guarantee (typically non-profits).

When you register, Companies House issues a certificate of incorporation confirming the company exists, along with a memorandum of association (the founding agreement) and articles of association (the rules for how it's run).

Yes. We’re an authorised formation agent of Companies House, and we’re securely integrated with them, so you can trust us to register your limited company.

It depends. In many cases, Companies House will incorporate your company within 1 business day. The majority of businesses are incorporated within 48 hours. Please note that Companies House does not work on weekends so if you send an application on a Friday, it will take longer.

Forming a company via Companies House is now £100 (effective from 01/02/2026). At Tide, our members will only pay £14.99 – we’ll take care of the rest.

https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/

Companies House requires limited companies to have either Limited or LTD at the end of the company name. If you don't include LTD or Limited in your search, we will automatically add LTD. There is no difference between the name endings Limited or Ltd, except for how they look.

If your company incorporation is rejected by Companies House we will issue a refund for the amount you paid directly to your directly to your original method of payment immediately after receiving the rejection communication from Companies House.

Help, my question isn’t answered here…

Find answers to all our most frequently asked questions about registering a company

We understand businesses, it's all we do

Tide is built by business owners for business owners. That’s why we’re trusted by over 2 million sole traders, freelancers, and limited companies worldwide.

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