What Is The Reason a Sole-Proprietorship Is Most Common In Pakistan?

Sole proprietorship is the most common form of business structure in Pakistan, particularly among small and medium-sized enterprises (SMEs). This popularity stems from a combination of legal, economic, and cultural factors that make this business model appealing to many entrepreneurs. Here’s an exploration of the reasons why sole proprietorships dominate the business landscape in Pakistan. 1. Ease of Formation and Low Cost One of the primary reasons for the prevalence of sole proprietorships in Pakistan is the ease with which they can be established. Unlike other business structures, such as partnerships or private limited companies, a sole proprietorship does not require Company Registration In Pakistan with the Securities and Exchange Commission of Pakistan (SECP). Instead, an individual can start a business by simply obtaining the necessary trade licenses and registering for tax purposes with the Federal Board of Revenue (FBR). This simplicity reduces the time and cost involve...