Sole proprietorships

The simplest form of business is the sole proprietorship, which is a business owned by one person. The owner receives all the profits of the business, assumes all the risks, and is liable for all the debts of the business. If the business goes bankrupt, the owner's personal assets may be seized in addition to the business assets.

A sole proprietorship cannot be carried on by more than one person. Where two or more persons wish to carry on a business together, they must form a partnership or corporation.

For information on the distinction between an employee and a self-employed person, click on Your status in the "Self-employed persons" portal.