Registration of a business name is obligatory if any individual or partnership or any company carries on business under a name other than their own true names. A person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business is a sole trader. A sole trader's business is part of his personal property and the business debts and liabilities are also the trader's own personal liabilities. Any creditors of a sole trader have recourse directly against that sole trader and his assets.

Unlike a partnership or company a sole trader takes all decisions in connection with the running and management of his business without having to consult with anyone - apart from his professional advisors. A sole trader prepares accounts for his own use for submission to his bankers and to the tax authorities. Unlike the disclosure requirements for a company, a sole trader does not have to file accounts with the Companies Registration Office.