What is the difference between sole trader and limited company?

You have got so many answers and they have covered the issue elaborately. If you have your own sets of skills and start your business early and avoid the regular compliances required for company you can become a proprietor.

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.

A sole trader can be referred to as the Sole Proprietor ship Company. Now, when you compare this to a limited company, the difference are the following:
1. You do not need to register a Sole proprietor ship company. However, registration is the essence of a private Limited Company.
2. There are no compliances for a sole proprietorship company. However, there are many for a limited company.

Sole Trader: A sole trader is essentially a self-employed person who is the sole owner of their business. It’s the simplest business structure out there - which is probably why it’s the most popular.
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Sole Trader Advantages:
1. Easy to set up and relatively little paperwork, other than an annual self-assessment tax return.

2. Greater privacy than incorporated businesses, whose details can be found via Companies House.
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Sole Trader Disa

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

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.

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.

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.