Sole Proprietorship, known as the sole trader or simply a Proprietorship, is a type of enterprise that is owned and run by one natural person and whereby there is no legal distinction between the owner and business entity. The owner is in direct control of all elements and is legally accountable for all finances of such business and this may include debt, loans, loss, etc.
Certificate of Incorporation is issued to incorporate entities like Company, LLP etc. Sole Proprietorship is not separate legal entity – it is merely an individual conducting business. Hence, the Certificate of Incorporation is neither issued nor required.
However, for its legal recognition, the registration may be obtained under Shop & Establishment or MSME Department.
If you are looking for setting up a proprietorship firm in India, feel free to get in touch with experts at LegalWiz.in Call us on 1800-313-4151 or simply write at Support@LegalWiz.in
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