What is a solo proprietorship?
A sole proprietorship is characterized by the fact that only one person owns the business. This means that the owner is the decision maker and should not be liable to or have any obligations to anyone else in the business when it comes to decision making.
However, this also means that the owner is solely responsible for a possible bankruptcy and growth of the company's finances.
Pros and cons of a one-man business
There are not many requirements for a one-man business. There is no capital requirement, but in return the owner is personally liable for any debt in the company. This means that the company's creditors can claim the personal wealth that the owner may have. These are houses, cars, boats and other assets.
In addition, there is no requirement for annual accounts to be published, which must still be booked in accordance with the Accounting Act. An executive board or board of directors is also not a requirement as all decisions are made by the owner.
It is easy and fast to start a one-man business, this is done on VIRK.dk, here you get your CVR number and get VAT registered and then you are off. Now all the fun begins.