Can a company register a sole proprietorship? If so, what is the liability?
Yes, a company can register a sole-proprietorship (RCB may require a local manager to be appointed. As with all other unincorporated entities, liability of the sole-proprietorship is unlimited. Directors of the owner-company may, in certain circumstances, be rendered liable for the business, as the Business Registration Act includes directors in the definition of persons who are responsible for the management of the business.
Related Questions
- If my company is a sole proprietorship and I registered with Revenue using my Social Security Number, will that number be sufficient to register as a Business Entity?
- Is it better to register as a sole proprietorship or to constitute a company?
- Does a sole proprietorship have any liability protection?
