Sole Proprietorship is a form of business organisation, where a single person owns, manages and controls, all the business activities. Here sole proprietor is exclusively responsible for investing capital, bearing risk and also the profits of organisation belongs to proprietor only. There is no legal distinction between proprietorship and owner. Sole proprietorship is the most simple and popular form of business in India. Registration of proprietorship is not governed by any law, therefore, existence of proprietorship must be established through tax registrations and other business registrations that a business organisation is required to have , as per other rules and regulations. It is easy to start and easy to close too.
Key benefits of proprietorship:-
- Simple registration process
- Less expensive compared to company or llp
- Less compliance as compared to private Limited company or LLP.
- Segregation of risk
- No restriction on selection of name