A sole proprietorship can be considered as a single person business. It Small scale enterprises are generally owned and operated on the basis of sole proprietorship. Enterprises based on this do not require any registration. An informal trader or estate agent are probably the best examples of sole proprietors.
● A sole proprietor is considered to be an independent legal entity.
● There is no legal protection against claims of a sole proprietor.
● The personal properties or assets of a sole proprietor will be at stake in case he issued.
● As the proprietor of the business, the owner carries the full risk of his assets and losses.
● The owner may also be subjected to sequestration.
● In the context of sequestration, if the proprietor is married in a community of property, the ownership of the estate owned by his spouse may also be held by a natural person, a trust or any other separate legal entity.
● In case of any uncertainties whether to hold a property in a person’s personal name, legal consultants must be consulted before signing any legal agreement.