Q.Which of the following is generally true about starting a sole proprietorship?

The ease of starting a sole proprietorship is one of its biggest attractions, and it comes precisely from the absence of any special governing law or compulsory registration. …

There is no special statute that governs the formation of a sole proprietorship, and no compulsory registration is required merely for the business to exist — a person can simply begin trading. This is what makes it the easiest and cheapest form of organisation to start. Option (a) is wrong because no such 'Sole Proprietorship Act' exists; option (c) is wrong because a sole proprietorship, by definition, has exactly one owner; and option (d) is wrong because a sole proprietor is under no obligation to publish accounts, which is in fact one of the sources of his business secrecy. (Note that while n …

Assuming that because certain trade licences (GST, FSSAI, Shops and Establishments) may apply, the sole proprietorship as a form must be 'registered' — those licences regulate the sp …