A sole proprietorship is a business that is owned and managed by a single person.
Very popular among the unorganized sector, particularly small traders, and merchants.
There is no specific registration; proprietorships are recognized by other registrations, such as a service tax registration or sales tax registration.
To open a bank account in the name of the firm, a minimum of 2 registrations such as Shops & Establishments, Professional Tax, Service Tax, MSME, etc. under the local, state or central authority is mandatory to comply with the Know Your Customer (KYC) norms of the bank.
The liability of the proprietor is unlimited and it does not have a continuous existence.
