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3 min read · 21 Aug 2026

What is the difference between a business name and a limited company?

A business name (sole proprietorship) offers no legal separation between the owner and the business (you are personally liable for debts).

Direct answer

A business name (sole proprietorship) offers no legal separation between the owner and the business (you are personally liable for debts). A Limited Company (LTD) creates a separate legal entity protecting personal assets.

Practical tips

- Always ensure you understand the a requirements. - Keep detailed records, as mentioned: 'a...' - Seek professional advice when in doubt about legal or financial matters.

Topics: Uganda · FAQ · Business · Debt Recovery · URA

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