A Proprietorship, also known as a Sole Proprietorship, is a type of business entity owned and managed by a single individual. It is the simplest and most common form of business structure, ideal for small-scale entrepreneurs and businesses. The proprietor is solely responsible for all aspects of the business, including operations, profits, and liabilities.
Benefits of a Sole Proprietorship Firm
Fairly Easy to Establish
Setting up a sole proprietorship requires minimal formalities and documentation. It is a quick and hassle-free process, making it ideal for startups and small businesses.
Less Investment
Establishing a proprietorship requires low capital investment, making it accessible to entrepreneurs with limited resources.
Ensures No Profit Distribution
As the sole owner, you retain 100% of the profits earned by the business. There is no obligation to share profits with partners or shareholders.