The short answer
Register a business name if you are starting small, working alone or with a partner, and want a simple, affordable way to trade formally. Incorporate a limited company if you want limited liability, plan to bring in investors, or need to bid for larger contracts.
Legal status and liability
A business name is not separate from its owner, so the owner is personally liable for the business's debts. A limited company is a separate legal entity. It can own property and enter contracts in its own name, and shareholders' liability is limited to their shares.
Cost and paperwork
A business name is cheaper and quicker to register and has lighter ongoing obligations. A company involves more documents at the start (such as details of directors, shareholders and share capital) and more compliance afterwards, including annual returns.
Banking, contracts and credibility
Both can open a business bank account. Many corporate clients, government agencies and international partners prefer or require a limited company, and investors can only take shares in a company.
Quick comparison
- Separate legal entity: business name no, company yes
- Limited liability: business name no, company yes
- Can take investors as shareholders: business name no, company yes
- Setup cost and paperwork: business name lower, company higher
- Best for: business name suits solo traders and early-stage businesses; company suits growing businesses, contractors and startups
Can you start with one and switch later?
Yes. Many owners register a business name first and incorporate a company as the business grows. DAES can help with either registration and advise on the right time to move.
This guide is general information, not legal advice. Requirements can change, so DAES confirms what applies to your case before you start.
Let DAES handle it
Send us a message and we will guide you through the requirements and next steps.