Limited company formation services for Sole Traders

Getting yourself set up as a sole trader is relatively a straightforward procedure and for some businesses, it is indeed the most suitable solution to test the waters and get started.

But, as your business operation and finances begin to grow, you could find that trading as an individual might not be the most tax-efficient option for you to continue with.

It isn’t just the tax-saving opportunities you could expect from incorporating your business. There’s also the ability to protect your personal assets when trading under a limited company, or your customers’ perception of dealing with an incorporated business vs an individual?

If you are considering starting a new limited company, here’s what’s involved and how our Company Set-up team at Clever Formations can help.

Choosing your company’s name

Your company name must be unique on Companies House. If your preferred name is already being used by another business, you could choose a different name or consider adding a unique naming permutation. You could always add words such as ‘consultancy’ or ‘solutions’ to make your name slightly different.

Once you’ve decided on a preferred name, we will check whether it is available to use and then complete your limited company registration with Companies House.

Choose a registered address

You must have a registered office address for your limited company. This can be your *home address if you are not using a formal business premise.

* If you do not use a formal business premise and wish to keep your home address away from public view, you can always use Clever Formations address as your registered address. This service is available through our Privacy Formation, Professional Formation and the All-Inclusive packages.

Appoint directors and shareholders

Your company should have at least one director and one shareholder, however, you can be assigned with both positions if it’s just you in the company.

As a director of a limited company, you will also fall under the Self-Assessment tax system if you draw out dividends or earn other income over and above your declared wages. Click here for further advice about your director’s salary, dividend calculations or tax returns.

Obtain a Standard Industry Code (SIC)

The government assigns codes to limited companies according to which industry they operate in. It will be important to select the right SIC code before you begin the registration process.

Register your company with HMRC

For this process, you will need to complete and submit what is known as a CT41G document. This provides HMRC with some basic information about your company and must be submitted within three months of company formation.

Register for self-assessment tax

As a company director, it’s likely that you will need to submit a self-assessment tax return by January 31st each year.

Registering for Self-Assessment is included with both our Professional Formation and the All-Inclusive packages.

Register for VAT

While VAT registration is voluntary until the income of the company exceeds £85,000 in the last 12 months, in some circumstances it may make sense to register early.

For example, if you are incurring high levels of expenditure, or plan to purchase any assets, you can claim the VAT element back.

VAT registration is included with both our Professional Formation and All-Inclusive Formation plans.

Open a business bank account

You will need to open a business bank account so that you can keep your business and personal finances separate. Banks will usually require your limited company registration number before you can open an account.

We’ve partnered with Tide’s business banking solutions to help you get set up quickly and efficiently with a free bank account and £40 cashback.

Set up your online bookkeeping system

Our All-Inclusive Formation package enables you 24/7 access to our advanced online bookkeeping software. With it, you can input expenses, prepare invoices and track payments as well as a host of other accounting functions.

Get in touch

We can take care of the paperwork and admin associated with setting up your new limited company, allowing you to focus on finding clients and generating revenue from day one.

We also ensure your company complies with the requirements of both HMRC and Companies House and the transition from being a sole trader to owning your first limited company is completed smoothly.

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Tide bank account

All new applications for a Tide bank account will earn £100 cashback – find out more about Tide

Our packages

Digital - £11.95

Cost-effective, simple solution for those who do not wish to start trading just yet, or would like to register their new limited company as dormant.

Privacy - £19.95

Ensures your address will not be made public at Companies House. Protect your privacy with a registered office address or director’s home address.

Professional - £44.95


The perfect company formation solution that takes care of the heavy lifting of setting up your new limited company, with Companies House and HMRC.

All-Inclusive - £94.95

The perfect company formation solution that takes care of the heavy lifting of setting up your new limited company, with Companies House and HMRC.