By: Money Navigator Research Team
Last Reviewed: 09/02/2026
FACT CHECKED
Quick Summary
Limited companies and sole traders can both be eligible for Tide, but the sign-up journey typically differs because the “customer” being onboarded is either a separate legal entity (a company) or an individual trading personally (a sole trader).
That difference usually changes which details are requested, who must be verified, and how often a provider relies on Companies House data versus requesting additional evidence of trading activity.
This article is educational and not financial advice.
Why the entity type changes the sign-up checks
A limited company is a separate legal person from the individuals behind it. A sole trader is not separate from the individual: the person and the business are the same “customer” in practical onboarding terms.
That distinction matters because customer due diligence frameworks commonly require different information depending on whether the customer is an individual or a body corporate, including different approaches to verifying ownership and control for companies (for background, see HMRC’s overview of customer due diligence measures and the specific “body corporate” section in ECSH33320 – What due diligence measures are required).
For Tide specifically, Tide publishes different joining/support pathways for company registration and for sole trader accounts, which signals (at minimum) different user journeys and eligibility framing for each route (see Tide’s company-registration joining pages such as What documents are required to open a Tide current account? and Tide’s sole trader eligibility marketing page Sole trader bank account).
What typically differs at a glance: limited company vs sole trader
1) What you’re opening the account as
Limited company: The account is opened in the company’s legal name. The company’s registration details are central to the application narrative (company number, registered office, directors, and people who control it).
Sole trader: The account is opened for an individual who trades personally. The application typically centres on the individual’s identity plus the trading identity (trading name, trading address, what the business does).
2) Who usually gets verified
Limited company: One or more individuals connected to the company commonly need to be verified (for example directors and, where relevant, people with significant control).
Sole trader: The sole trader (the individual) is the primary person verified.
This is one reason limited company sign-up can sometimes feel more involved: there can be more than one person to check, and the business has a formal ownership/control structure to understand.
3) Where “public register” data is used (and where it isn’t)
Limited company: Providers can often cross-check core company identity using Companies House information (directors, registered office, and recorded control information), then use follow-up questions if something doesn’t match the expected picture.
Sole trader: There is no Companies House company profile to anchor identity, so providers often lean more heavily on direct questions and (where needed) supporting documents to evidence the individual and the trading activity.
Limited company sign-up with Tide: the common “extra” moving parts
Company identity: data fields that usually exist only for companies
Compared with a sole trader, a limited company application typically involves some combination of:
Company legal name
Company number
Registered office address
Directors (and sometimes other controlling persons)
Nature of business / sector information
Even if these are partly auto-filled or validated through registers, they still exist as distinct verification targets.
Directors and PSCs: why companies bring extra people into scope
A PSC (person with significant control) is typically someone who meets control conditions (for example, holding more than 25% of shares or voting rights, or being able to appoint/remove a majority of directors). GOV.UK summarises the PSC concept and the details companies must gather and keep updated in People with significant control (PSCs).
In onboarding, the practical implication is that a limited company’s sign-up can involve:
verifying at least one individual linked to the company; and
understanding who ultimately controls the entity (especially where ownership is layered or not straightforward).
Companies House has been rolling out identity verification requirements for PSCs as part of broader reforms. That is distinct from opening a financial account, but it can affect the general “company admin environment” and the questions owners/directors expect to face. Companies House explains the PSC identity verification programme in Understanding identity verification for people with significant control (PSCs).
Sole trader sign-up with Tide: what typically replaces the “company” fields
Eligibility framing and “who the customer is”
Tide sets out sole trader eligibility-style conditions on its sole trader page (for example age and UK-based framing) in Sole trader bank account. The key point for sign-up differences is that the account is built around an individual trader, not a registered corporate entity.
Supporting documents: the same categories, but often different emphasis
Both companies and sole traders can be asked for proof of identity and proof of address, and Tide provides a general overview of how supporting documents are supplied and examples of acceptable documents in How to provide your supporting documents and a joining-specific ID explainer in What ID will I need to open a bank account with Tide?.
Where sole traders often experience a difference is not the existence of identity/address checks, but the fact that there is no company profile to validate – so questions about trading activity, trading address, and business purpose can take on more weight if the picture isn’t clear from the application data.
Summary Table
| Scenario | Outcome | Practical impact |
|---|---|---|
| Applying as a limited company with more than one director | More than one individual may be in scope for checks | The application can involve additional identity steps and follow-up questions |
| Applying as a sole trader using a trading name | The “customer” is still the individual, with a trading identity layered on top | Statements, payee expectations, and verification questions can focus on the individual-trader link |
| Limited company has a registered office different from trading address | Two addresses may need to make sense together | Address mismatch can trigger clarification requests |
| Sole trader has limited online footprint | Business activity can be harder to evidence from public data | The provider may ask for more explanation or supporting evidence |
| Limited company ownership/control is complex (e.g., unusual share/control pattern) | Ownership/control understanding becomes a distinct step | More questions about who controls the company and why |
Where delays and follow-ups typically come from
A useful way to think about delays is “mismatch resolution”: when what the provider sees does not line up cleanly (or completely) with what they need to understand.
Common triggers include:
Entity-type mismatch: selecting the wrong business type during application (or describing activity that doesn’t fit the chosen type).
Address inconsistencies: registered office vs trading address vs residential address not aligning in an expected way.
Control complexity: multiple directors, PSC considerations, or unclear control narratives for a company.
Business-model clarity: the “nature of business” questions sometimes expand when activity is hard to categorise cleanly.
If you want the broader Tide-specific framing of what can slow onboarding checks (separate from the company-vs-sole-trader comparison in this article), see Tide application delays: common checks that slow sign-up.
Scenario Table
| Scenario-level | Process-level | Outcome-level |
|---|---|---|
| Limited company: onboarding a separate legal entity | Validate company identifiers, then map people connected to the entity (directors/controllers) | More “moving parts” to verify; follow-ups often relate to control and role clarity |
| Sole trader: onboarding an individual trader | Verify the individual, then connect them to the trading activity and trading identity | Fewer “people checks”; more emphasis on trading narrative where unclear |
| Company: multiple addresses (registered office + trading address) | Reconcile address purpose and ensure consistency across documents/data | Clarification request to confirm what happens where |
| Sole trader: trading activity hard to evidence publicly | Request additional explanation and/or supporting evidence of activity | More back-and-forth about what the business does and how it operates |
| Company: control structure not straightforward | Ask questions to understand ownership/control and roles | Extra queries before approval/activation |
Tide Business Bank Account
Tide sits within the app-based business account landscape, and the product positioning, pricing, and key trade-offs are covered in our Tide business account overview.
This article focuses only on what typically differs at sign-up between limited companies and sole traders, rather than plan selection or product comparison.
Frequently Asked Questions
They share some building blocks (for example identity checks and questions about the business), but the journeys typically diverge because the “customer” is different: a company application is anchored to a separate legal entity, while a sole trader application is anchored to an individual.
Practically, that usually changes which identifiers exist (company number and registered office only exist for companies) and who might need checks (companies can involve directors/controlling persons; sole traders are typically a single individual). Even when the app experience looks similar, the underlying verification logic can be different.
A limited company application commonly includes the company’s legal identity information (such as company name, registration details, and registered office address) alongside information describing what the business does.
It also commonly involves identifying and verifying the individuals behind the company in some way. Even when company data can be cross-checked, applications can still generate follow-up questions where the provider needs to confirm that the people operating the account are appropriately linked to the entity and its control structure.
A sole trader application typically focuses on:
- The individual’s identity and address details
- Information that connects that individual to a trading activity (what the business does, how it operates, and how it will use the account).
Because there is no Companies House company profile for a sole trader, the trading story can become more important when something is ambiguous (for example unusual payment flows, unclear business model, or inconsistent addresses).
That does not mean a sole trader is “harder” to onboard – it means the inputs are different.
Companies are run and controlled by people, but the “customer” is the company itself. Providers often need to understand who is acting on behalf of the company and who ultimately controls it, especially where roles and ownership could affect risk decisions and permissions.
This is consistent with broader customer due diligence concepts that treat body corporates differently from individuals and emphasise understanding ownership/control for entities. A plain-English overview of those measures and how entity type changes what’s collected appears in HMRC’s compliance handbook material.
A PSC is a person with significant control over a company – for example through shareholding/voting rights or the ability to appoint/remove directors. The PSC concept is part of the corporate transparency framework and shapes the control information a company must identify and maintain.
During onboarding, “PSC” is sometimes used as shorthand for “who controls this company and how.” Even where the onboarding process does not explicitly label someone a PSC, the underlying question can still be: who ultimately controls the entity and who is authorised to operate the account?
Not always, but the pattern can feel that way because limited companies have a public register profile that can help validate company identity quickly, while sole traders do not have an equivalent company record.
Where providers can’t easily corroborate the trading picture (for either entity type), they may ask for supporting evidence. For sole traders, that can mean more emphasis on demonstrating trading activity and tying that activity back to the individual applicant, particularly when the business model, payment flows, or address story is unclear.
For limited companies, it’s common for the registered office to differ from where trading actually happens. In onboarding terms, the practical issue is whether the application clearly distinguishes what each address represents, and whether that matches the overall business narrative.
Where the address story is confusing – for example, multiple addresses with no explanation, or addresses that appear inconsistent with the stated business activity – a clarification request is a common outcome. This can happen for both companies and sole traders, but companies have more formal “address types” in play.
It can. New businesses often have less operational history, fewer invoices/contracts, and a smaller online footprint. That can make some “what does the business do?” questions harder to evidence quickly, even when the business is legitimate.
For limited companies, the incorporation record can exist immediately, but operational activity may still be minimal. For sole traders, trading can begin before formal tax registration thresholds are reached, which can create timing differences between “starting to trade” and “having documents that look ‘established’”. These are not automatic blockers, but they can influence how many follow-up questions occur.
Not necessarily in every case, but limited companies often involve checks that relate to who is authorised to act for the company and who controls it. When multiple directors exist, providers may need to determine which individuals are relevant to the account opening and operation.
The practical implication is that “more people in the picture” can create more potential touchpoints: role clarity, authority to act, and consistency between the application and public/company records. That can increase the likelihood of additional questions, even where the end outcome is still approval.
Limited companies and sole traders have different tax registration pathways and ongoing obligations, and that can surface indirectly in onboarding questions about business structure and expected account use.
For sole traders, GOV.UK explains the Self Assessment registration pathway in Register as a sole trader. For limited companies, GOV.UK describes the incorporation process and core structural elements (directors, shareholders, and PSC identification) in Set up a private limited company.
These distinctions are often relevant context when providers ask questions about the business model, who is behind the business, and how funds will move.
The most reliable way to understand “why the app is asking this” is to separate user experience from risk logic. On the surface, both entity types might be routed through similar screens (identity, business description, supporting documents).
Underneath, the risk logic is trying to answer a different set of questions depending on whether the customer is an individual or a legal entity.
- For companies, the recurring constraint is control mapping: verifying not only that the company exists, but that the people operating the account are correctly linked to the entity and its control structure.
- For sole traders, the recurring constraint is activity mapping: verifying that the individual is real and that the trading activity described is coherent, consistent, and supportable by the information provided.
Sources & References
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