1. Lifespan Depends on the Owner

• A sole proprietorship exists as long as the owner is alive and active in business.
  
• It automatically ceases to exist upon the death, retirement, or incapacity of the proprietor, unless transferred or restructured.
  

2. No Perpetual Succession

• Unlike a company, a sole proprietorship has no separate legal identity, so it does not enjoy perpetual existence.
  
• The business ends unless the legal heir formally restarts it under their name or converts it to another structure.
  

3. Continuity Based on Compliance

• It can last indefinitely if the proprietor continues to meet legal obligations such as maintaining valid licenses (e.g., GST, Shop & Establishment).
  
• Failure to comply may result in cancellation of registrations, leading to business closure.
  

4. Voluntary Closure at Any Time

• The proprietor has the freedom to close the business at will, without any formal legal winding-up process.
  
• This makes it flexible but also dependent entirely on the owner’s decisions.
  

5. Can Be Converted or Reconstituted

• If the business grows, the sole proprietorship can be converted into a partnership, LLP, or company.
  
• This allows for continuity under a new legal structure even if the original sole proprietorship is closed.