A 'sole proprietorship' or simply known as 'proprietorship', is a form of business entity owned, controlled and managed by one natural person There is no legal distinction between the owner and the business. The owner is solely responsible for the functions of his business and the liability therein is unlimited.
It is the most simple and common form of business- the local kiryana/grocery shops in our locality, general stores, small cafes and restaurants (solely owned by a single person), handlooms and all the small shops we see around us are nothing but, sole proprietorship.
The owner solely bears the loss and enjoys the profit. He has direct control over all the business transactions and he is solely liable for debt, loans, and taxes etc. At present, there is no statutory provision for registration and regulation of 'Sole Proprietorship'. But, compliance with tax registrations like service tax, VAT, shop establishment, MSME etc. is required.
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