A sole proprietorship is a type of business structure in which a single individual owns and operates the business. The owner is personally responsible for all aspects of the business, including making business decisions, managing the day-to-day operations, and assuming all financial risks. The owner is also entitled to all of the profits generated by the business.
In Pakistan, a sole proprietorship is relatively easy to set up, as there are few legal requirements. The owner simply needs to register the business with the relevant authorities, such as the local chamber of commerce and industry and the tax authorities, and obtain any necessary licenses and permits.
One of the main advantages of a sole proprietorship is that it is relatively simple to set up and operate, as the owner has complete control over the business. However, it can also be risky, as the owner is personally responsible for any debts or liabilities incurred by the business.