Sole trader is the simplest form of company that is used to describe a person who works for their interest without having had any formal procedure to establish themselves as a limited or unlimited company. The operation can be easily set up and starts immediately. The owner of a sole proprietorship business has full control over the business, where the owner can decide how the business can be conducted. The sole merchant owner has the authority to restructure and dissolve the business when it suits him.

This is a type of business that carries greater and personal risk rather than a limited liability company. As a sole proprietor, the business owner is responsible for all aspects of the business. It is not so easy for a sole trading company to attract external investors or partners, which slows the growth of the business. In terms of size, the company is quite small, but the number of autonomous companies is very large compared to any other form of business.

A sole proprietorship business can be easily established. No formal procedure is required to start the operation, which can often start instantly. In order to establish a sole business company, it is not necessary to present accounts or records at the companies’ house.

A single business differs from a limited company in the following way:

If you are a sole proprietor, according to the law, you are the person who works on your behalf or a person who works for you and who works for others as a single person or individual. But in the case of a limited liability company, the law expects someone else to be working alongside you in the purview and power of a director of the company.

As a sole trading company, you must keep records of your business and submit your account details, but in the case of a limited partnership, you are expected to appoint an accountant and file the annual or semi-annual accounts providing all the information about your financial affairs. . . If a Limited Liability Company goes into bankruptcy or liquidation, then it is the company that you must deal with, not the people who run the business. But in the event of bankruptcy or liquidation of a self-employed company, the owner will be liable for any unpaid hardship or hardship.

Advantages of a single commercial business:

Easy to set up – Individual merchant business is the simplest form of business. You can set up your single commercial business easily. You can trade as you like. No formal procedures are required and the business can be started immediately.

Full control over your business – As a sole proprietor, you have full control over your business and can make any decision based on your suitability without consulting or asking other partners for permission.

Easy to change: a sole proprietorship can easily be converted to a limited company

Easy Bookkeeping – As a sole proprietor, you can keep all the records of your financial affairs.

Personal services: to attract your customers you can provide them with a personalized service

Disadvantages of a single commercial business:

1) Business with higher personal risk

2) Difficult to attract outsiders

3) You may find it difficult to attract outside investment