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Knowledge Centre

Nature of sole proprietorships

What is a sole proprietorship?

  • According to ACRA,

    A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business.

    The legal status of a sole proprietorship can be defined as follows:

    • It is not a separate legal entity from the business owner
    • The business owner has unlimited liability (i.e. the business owner is personally liable for all the debts and losses of the sole proprietorship)
    • It can sue or be sued in the owner’s name