Questions

What is the difference between sole trader and limited company?

Asked by Vidit Agarwal, in Business

Answers

Gemma Alpert Junior  Consultant
A limited company is its own legal identity, so as a shareholder your liability is limited (hence the name 'limited by shares'). As a sole trader, there is little distinction between you and the business. Any business debts become your debts and your personal assets - including your house - are not protected.
May 10th 2018 08:49   
Madhavi Khandwala Junior  IELTS COACHING CLASSES IN AHMEDABAD
Unlike a sole trader a limited company has the benefit of limited liability, as incorporation forms a legal distinction between the business owner and their business. ... Once you've registered a company name nobody else can use it, in contrast to sole traders who aren't offered the same protection.
May 11th 2018 06:14   
SM Kollectionz Junior  We Know what is hot and what is not
A limited company is its own legal identity, so as a shareholder your liability is limited (hence the name 'limited by shares'). As a sole trader, there is little distinction between you and the business. Any business debts become your debts and your personal assets - including your house - are not protected.
May 11th 2018 09:25   
Gaurav Bansal Advanced  Company Registration Consultants in Delhi
A sole trader is a singular trader. This is what you wold call a sole proprietorship company. Now, a sole proprietorship company only needs the PAN card of the company, and they do not need to adhere to any sort of compliance. Whereas a limited company requires at least 2 directors or owners. They also require at least 2 shareholders and once they are registered, they would be have to adhere to the annual compliance set up by the Companies Act 2014
Jul 10th 2018 04:00   
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