Glossary
Proprietorship
Sole Proprietorship
A Sole Proprietorship is an unincorporated business owned, managed, and controlled by a single individual, where there is no legal distinction between the owner and the business entity, making the owner personally liable for all business debts.
Where it appears in practice
It is ideal for very small businesses or freelancers starting with minimal capital and compliance requirements, who do not immediately need limited liability protection or outside investors.
A worked example
A freelance graphic designer starts an agency. They obtain a GST registration [VERIFY] and an MSME certificate [VERIFY] under their own name. If the business incurs a debt of ₹5 Lakhs [VERIFY], the proprietor's personal assets can be attached to recover the amount.
Related terms
- Partnership Firm
- LLP
- GST Registration
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Entity Formation