Sole proprietorship is a business invested by a proprietor. Sole proprietor enjoys all the profits, but is also personally liable for all business' s debts.

• Structure of sole proprietorship is relatively simple.
• Sole proprietor has full control to decide the trading strategy, earnings and capital.
• The procedures for cessation of business are very simple.
• The tax rate for sole proprietorship business is relatively lower than the average corporate tax rate. The loss from the business may offset other income earned by sole proprietor.

• Sole proprietors shall bear the business risk and debt personally. They may go bankrupt if the company is unable to repay the debt.
• Illness or death of the sole proprietor will end the succession of business.
• Limited source of capital to expand business.

A partnership is an arrangement where parties, known as partners, agree with their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations thereof. Partnership legislation has been codified in "Partnership Ordinance."

Unlike Limited Company, each partner shall be responsible for the acts of each other partners of the business, also personally liable for all business debts unless otherwise agreed, each partner could share the company's profits

If it involves the transfer of partnership interests, it should be according to the partnership agreement between all the partners.

Entering into a partnership agreement is very important, the agreement should include the distribution of profits, the ways to control and resolve business disputes. At the time of entering into the agreement, the company should seek a lawyer for legal advice.

• Partnership business is easier to raise funds.
• Partners get their tax on profits, and each partner can offset losses from share of their other income.


• Unlimited debt obligation.
• At the time of entering into legal transactions, require the consent of all the partners are required, it is prone to conflict when there were disagreements between partners.
• Unless otherwise agreed between the partners, if the death or bankruptcy of any partner will dissolve the partnership business.