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myGovernment > English > Relevant Topics > Doing a Business > Business > Step 1: Planning Your Business > Forms of Businesses > Sole Proprietorship
myGovernment > English > Relevant Topics > Doing a Business > Business > Step 1: Planning Your Business > Forms of Businesses > Sole Proprietorship
Pautan Berkaitan
Sole Proprietorship 

Sole proprietorship is the simplest form of business organisation. It is owned by one person, but it need not be operated by that person alone. A sole proprietorship can even have large numbers of employees. 

There are advantages and limitations of running a Sole Proprietorship type of business. Do carefully study the legal implications of the pros and cons before deciding the best option.

Advantages of Sole Proprietorship

  • As a sole proprietor, you have absolute freedom in decision making. 
  • All profits will be your personal property.
  • No reports of accounts are required.
  • You only need to pay personal income tax and not business tax.
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    Limitations of sole proprietorship

  • You are responsible for the debts and risks of the business.
  • Legally, there is no difference between your personal and your business property. Your liabilities are unlimited, whicn means risks and failures in the business will involve your personal property.
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    Click here for information on procedures with regards to sole proprietorship.