Ideal for businesses who are looking for single point of control & direction Definition (1) - A sole proprietorship or self owned business, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. In a Proprietorship Firm, the Business and the owner is considered one and the same thing.

Definition (2) -This is the most common type of business entity in India as it provides a starting platform to an individual starting their business venture without being dependent on another person. The individual entrepreneur owns the business and is fully responsible for all its debts and legal liabilities. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor, and all debts of the business are the proprietors.