A sole proprietorship is a type of business entity where a single individual owns, controls, and manages the business. The owner of the business is known as the sole proprietor. In a sole proprietorship, there is no legal distinction between the proprietor and the business entity itself. The sole proprietor is personally responsible for all the profits, liabilities, and obligations of the business.

One of the key advantages of a sole proprietorship is its simplicity in terms of starting the business. There are fewer legal formalities and lower formation costs involved compared to other types of business entities.

In India, there is no specific registration requirement for a sole proprietorship firm. The government has not prescribed any rules or regulations for the registration of sole proprietorships. However, the recognition of a proprietorship can be established through tax registrations that are mandatory as per the rules and regulations. These tax registrations may include GST registration and/or SSI/MSME/Udyam Aadhar registration, which should be obtained in the name of the proprietor to signify that the business is being operated as a sole proprietorship.

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