Should You Register with the CQC as a Sole Trader or Limited Company?
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Do You Have to Be a Company to Register with CQC?
No — the CQC allows individuals to register as sole traders, as well as limited companies and partnerships.
But your choice of structure affects how your service is governed, who is legally responsible, and how your application is assessed.
Sole Trader: Pros and Cons
Pros:
- Simpler to set up — no Companies House admin
- More direct control — you are both the provider and registered person
- Fewer people involved in the application process
Cons:
- You’re personally liable for all legal and financial responsibilities
- Harder to grow or bring on other directors/shareholders
- May appear less formal or scalable to commissioners
Limited Company: Pros and Cons
Pros:
- Separate legal entity — limits personal liability
- More professional and scalable setup
- Easier to bring in investors, partners, or successors
Cons:
- More admin — registration with Companies House and HMRC
- Must appoint a Responsible Individual if you're not managing directly
- CQC application requires more detail (directors, structure, governance)
Which Should You Choose?
If you’re starting small and plan to run the service yourself, a sole trader model can be a good first step. But if you’re planning to scale, take on staff, or apply for larger contracts, a limited company structure often makes more sense — and aligns better with commissioner expectations.
Remember: once you’ve registered, changing your legal status later means a new CQC application.
Need Help with Your Application?
Impact Guru Ltd supports new providers with all aspects of CQC registration — whether you’re applying as an individual or company.
We offer tailored business plans, policy templates, and consultancy to help you start strong.
Get in touch for support, or browse our policy templates to get your documents in order.
Written by Mike Harrison, Founder of Impact Guru Ltd — specialists in bid writing and strategy for social care providers
Visit impact-guru.co.uk to browse downloadable strategies, method statements, or get in touch about tender support.