Sole ownership is the simplest form business kind under which one can operate a business. That is no a legal entity. It just refers to a human being who own the business and is personal responsible because that its debts. Over there is no legal distinction between the assets and liabilities that a business and also those of its owner. The is by far the most popular organization structure because that startups. It no need any type of registration through the government however there space some service licenses you should take while setting up single proprietorship firm favor sales tax, organization tax, import/export code, shop and establishment, etc.
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1. Contacted with the customers: In sole proprietorship a businessman has direct interactions v the customer and cares the likes and also dislikes of the public while developing products.
2. Direct Relationship through Workers: In sole proprietorship a businessman has direct relationship through workers. He can much better understand their problems and also then tries to deal with them.
3. Easy Formation: Its development is very easy since there room not legit restrictions compelled like registration etc
4. Basic Dissolution: Its resolution is very basic because there space no legal restrictions forced for its Dissolution and it deserve to be liquified at any time.
5. Easy Transfer that Ownership: A single proprietorship can easily be moved to various other persons since of no legitimate restriction involved.
6. Whole Profit: sole proprietorship is the only kind of service organization whereby the owner enjoys 100% profit.
7. Whole Control: In sole proprietorship the entire regulate of the service is in the hand of one person. He can do whatever he likes.
8. Flexibility: there is great flexibility in sole proprietorship. Business policies can easily be readjusted according come the market conditions and also demand of people.
9. Honesty: The sole understand of the company performs his attributes honesty and also effectively to do the business successful.
10. Independence: it is an independent kind of organization organization and also there is no interference no interference of any kind of other person.
11. An individual Satisfaction: as all the Business activities are accomplished under the supervision of single owner, for this reason he feels personal satisfaction that the organization is running smoothly.
12. Rapid Decisions: sole proprietor have the right to make rapid decisions because that the advance and welfare that his business and in this way can conserve his time.
13. Personal Interest: A single proprietor takes keen interest in the affairs of business due to the fact that he is responsible for profit and loss.
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14. Secrecy: it is an essential factor for the advance of business. A sole trader can easily maintain the secrecy around the approaches of production and also profit.
15. Society Benefits: that is valuable in solving plenty of social troubles like unemployment etc