1. Basic Definition

• An unincorporated business is a business entity that is not formally registered as a company under corporate laws
  
• It operates without a separate legal identity from its owner or owners
  
• Ownership and management typically lie with individuals or partners directly
  
• Legal existence is tied to the individuals running the business
  
• It does not have corporate status or recognition under company law
  

2. Legal Structure

• It is not registered under the Companies Act or as a limited liability entity
  
• The business is treated as an extension of the owner or group of owners
  
• Contracts and agreements are usually signed in the owner’s personal name
  
• It lacks formal incorporation documents or a shareholding structure
  
• The business and its owner(s) are considered the same legal person(s)
  

3. Control and Management

• Decisions are made directly by the owner or a group of owners
  
• There are no formal boards, directors, or corporate governance frameworks
  
• Daily operations are personally managed without separate legal oversight
  
• The business structure allows for informal and flexible control
  
• Accountability is directly linked to the individual decision-makers
  

4. Registration and Recognition

• It may operate with basic registrations, such as local licenses or permits
  
• It is not required to register as a company with the Ministry of Corporate Affairs
  
• The business name, if used, is not legally distinct from the owner
  
• Official recognition is limited to the identity of the person or persons behind it
  
• Documentation and identity proofs refer to individuals rather than a legal entity
  

5. Continuity and Existence

• The business’s existence depends on the owner’s continued involvement
  
• It does not have perpetual succession or independent continuity
  
• It may end with the death, retirement, or incapacity of the owner
  
• Ownership transfer usually requires an informal handover or creation of a new setup
  
• It does not continue automatically beyond the original owner’s control