The sole proprietorship is the simplest form of business that legally has no separate existence from its owner. a proprietorship is an unregistered business entity. It simply means a person who owns and manages the business is personally responsible for its debts. A sole proprietorship is a popular form of business in India. It can either be operated under the name of its owner itself or by using a trade name that does not create a legal entity separate from its owner.
The sole proprietorship is common among small businessmen since no complexity involved in setting up of business and can be started at a nominal cost. It also has minimal registration formalities for setting up as well as no formality for winding up or closing the proprietorship A sole proprietor also has an advantage of earning all its profits. Sole proprietorships often have their bank accounts in the name of their owner. However, in order to open the bank accounts in the name of their business, they may have to register their business in GST or any other licensing documents may require.