A sole proprietorship is basically an organisation that is owned and managed by a single individual who controls the entire business. It is one of the most common forms of business in India, used by most micro and small businesses operating in the unorganised sectors. A sole proprietorships involving small dealers and merchants is quite easy to start. It has a very minimal regulatory compliance requirement. The proprietor can take all decisions without asking anyone or making any resolution. However, proprietorship has its inadequacies too: the liability of the proprietor is boundless, and it doesn't have a corporate status, separate legal entity, independent existence, or transferability.












