A sole proprietorship or sole proprietorship firm is a form of business that is owned, managed and controlled by an individual person. He is solely responsible for day-to-day management of the business and arrangement of capital. As a sole owner he is fully entitled to the profits and losses of the business. All the assets and resources of the business are completely owned by the sole proprietor, and he is completely responsible for the firm’s liabilities and debts. The liability of sole proprietor is unlimited i.e., in case of any default in payment of dues or loans, his personal property can also be used to repay business debts. A sole proprietorship does not create a separate legal entity from the owner, i.e. the business and the owner are one and the same.
Generally, sole proprietorship does not have any specific government registration in India, however one can opt for various registrations such as Shops and Establishment registration, GST registrations, MSME (Udyam) registrations etc. Any person willing to start a grocery store, retail store, boutiques, shops, small factory, household shops etc. can go for a sole proprietorship firm.