Describe sole trading concern.
1 Answer
Sole trading concern is the simplest, oldest and in some respect, the most natural form of business organization in the private sector. The person who starts run sole trading is called sole trader or sole proprietor. The proprietor uses his own skills, intelligence, knowledge, and capability for the successful operation and management of the firm.
"According to Professor Henry,” the individual proprietor is the form of business organization at the head of which stands an individual as one who is responsible, who directs its operations and who alone runs the risk of failure.”
According to Petersen and Plowman," a sole proprietorship is a business unit whose ownership and management are vested in one person. This individual assumes all risk and failure of enterprises and receives profit from its successful operation."
Characteristics of Sole Trading Concern:
Sole investment
Sole management
sole risk-taking
No separate legal entality
Unlimited liability
Independence
Registration of Sole Trading Concern in Nepal
In Nepal, there is no specific law regarding regulation of sole trading concern but it is guided by private form registration act 2014. According to Act, a private firm refers to any industrial enterprise , which is conducted by an individual in his own name or in the name of relative.
The procedure of registration renewable of sole trading concern is explained below:
- Filling an application
- Deposit of fees
- Certificate of Registration