An individual person owns, manages, and controls a sole proprietorship or sole proprietorship firm. Furthermore, this person is solely responsible for the day-to-day management of the business and the capital arrangement. Moreover, he/she has full entitlement to the profits and losses of the business.
The sole proprietor completely owns all the assets and resources of the business, and he is entirely responsible for the firm’s liabilities and debts. The sole proprietor’s liability is unlimited which implies that in case of any default in payment of dues or loans, creditors can use his personal property to recover their debt.
Further, it does not create a separate legal entity from the owner, i.e. the business and the owner are one and the same.
Moreover, a 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. Basically, any person willing to start a grocery store, retail store, boutique, shop, small factory, household shop, etc. can go for a proprietorship firm.