1.  A sole proprietorship is a business owned and run by one person. It’s the simplest business structure because there’s no legal distinction between the owner and the business itself. This means:

•  All profits belong to the owner
•  The owner is personally liable for all business debts and losses – If the business can’t pay its debts, the owner’s personal assets (like their car or house) could be at risk.
•  Sole proprietorships are very easy to set up and there’s minimal regulation. This makes them ideal for freelancers, consultants, and people starting small businesses.

2.  The government of India has not prescribed any sole proprietorship firm rules and regulation in India or there is no registration mechanism for Sole Proprietorship Firm registration.

3.  Thus, the registration of a proprietorship can only be recognized through tax registrations that the business is required to have as per the rules and regulations.

4.  These tax registrations may include GST Registration and/or SSI/MSME / Udyam Aadhar Registration that should be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.

Here are some of the pros and cons of a sole proprietorship:
Pros

a.  Easy to set up and maintain
b.  Owner keeps all profits
c.  Complete control over the business

Cons

a.  Unlimited liability for the owner
b.  Difficulty raising capital
c.  Limited growth potential