A sole proprietorship also referred to as a sole trader or a proprietorship, is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. This type of business can be incorporated in 15 days and hence makes it one of the most popular types of business to begin in the unsystematic sector, specifically among merchants and small traders. Registration is not required as it is identified through alternate registrations, such as GST registrations. However, its liability is unlimited and it also doesn’t have perpetual existence.