Advantages and disadvantages of the sole proprietorship
Characteristics of the individual establishment:
1- The ease of establishing the company, the low establishment fees, and you do not need to register in the real estate registry
2- The profits of the establishment are not subject to income tax, and part of the income of the owner of the establishment is subject to tax
3- A simple administrative and organizational structure
4- Ease of communication between the manager (owner) and customers to keep him fully aware of the changes and needs of customers
5- The small number of employees and the ease of communication between them
6- Low establishment fees
Disadvantages of the sole proprietorship:
1- The sole proprietorship cannot be transformed into a company under any circumstances if it is established outside the Investment Authority
2- The facility relies on the capabilities and skills of the owner of the facility to a large extent
3- The facility is exposed to bankruptcy or liquidation due to the death or bankruptcy of the owner of the facility, unlike companies, and this weakens its credit standing in dealings with others.
4- As soon as the owner of the facility dies, the company ends, unlike companies, and this weakens its credit standing in dealings with others
5- The inability of the individual enterprise to compete with large companies, except in the case of the large financial solvency of the owner of the enterprise and the weight of the market.
6- Dealing with banks is more difficult, as individual establishments have weak credit and are weaker than companies because they depend on one person only.
