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Sole Proprietor


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Sole Proprietor


A business that is owned, managed and controlled by a single individual is a sole proprietorship business. The word ‘sole’ means ‘only’ and ‘proprietor’ means ‘owner’. Thus, sole proprietorship business is the business which is owned, managed and controlled by a single individual. This individual is known as ‘Sole Proprietor’.

Formation and Closure

The formation and closure of sole proprietorship business are very easy. No legal formality is required either to start or close the business. Moreover, there is no specific law governing the operations of a sole proprietorship business


The liability of a sole proprietor is unlimited. This means when assets of the business are not sufficient to meet liabilities of the business in full, he is personally responsible for payment of debts.


Sole proprietor has full control over his business activities. All decisions related to his business are taken by him only and he is not bound to take permission from anyone for carrying out activities related to his business.

Separate Entity

Sole proprietorship business does not have a separate identity distinct from its own. In the eyes of law, a sole proprietor and his business are treated as one entity. Hence sole proprietor is responsible for all the activities of the business.

Lack of Business Continuity

Death, insolvency or imprisonment of sole proprietor has a direct and detrimental influence on the business. Sometimes, this may lead to even closure of the business enterprise.

Sole Risk Bearer and Profit Recipient

In case of failure of the business, entire risk is borne by the sole proprietor. Similarly, if the business is successful, the whole profit goes to him.

1. Aadhar Card
2. PAN Card
3. Bank Account
4. Registered office proof
5. Valid Mobile No. & email ID.

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