A single-owner company is a company whose capital is held by one person. It is legally distinct from a sole proprietorship, which remains directly linked to its owner.
Main differences
- A company has separate legal personality; a sole proprietorship does not operate as a separate company.
- Company liability is limited in principle, subject to guarantees, misconduct, and other exceptions.
- A company uses formal governance, written owner decisions, and defined management authority.
- Bringing in an investor is generally structured through interests or capital changes.
How to choose
Consider activity risk, contracts, licences, funding plans, compliance cost, and expected growth. Read the formation guide and the licensing guide.
