A Proprietorship is a business owned and managed by a single individual, with no separate legal identity from the owner. It is commonly chosen by micro and small businesses due to its minimal compliance requirements, complete control in the hands of the owner, and simple setup process.
A Proprietorship is one of the simplest and most straightforward business structures, ideal for individuals looking to start and manage a small business on their own. In this structure, the business and the owner are legally considered the same entity, which means the owner is personally responsible for all business liabilities and obligations.
This form of business is particularly popular among micro and small enterprises because it involves minimal regulatory compliance, allowing entrepreneurs to focus more on running and growing their business rather than on paperwork. The owner enjoys full control over decision-making, enabling quick and flexible responses to market changes.
Setting up a proprietorship is fast, cost-effective, and uncomplicated, requiring fewer formalities compared to other business structures. While it may be limited in terms of raising external funds or attracting investors, it remains an excellent choice for sole proprietors, freelancers, and small-scale businesses seeking simplicity, autonomy, and direct management of their operations.
