What is “sole trader” in the business structure?

1. 
   What is “sole trader” in the business structure?
   

A sole trader business structure is a person trading as the individual legally responsible for all aspects of the business. This includes any debts and losses, which can't be shared with others. This is the simplest, and relatively inexpensive business structure that you can choose when starting a business in Australia. As a sole trader, you'll generally make all the decisions about starting and running your business, although you can employ people to help you.

Advantages

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  Simple to set up and operate.
  
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  You retain complete control of your assets and business decisions.
  
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  Fewer reporting requirements.
  
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  Any losses incurred by your business activities may be offset against other income, such as your investment income or wages (subject to certain conditions).
  
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  Allows you to use your individual tax file number (TFN) to lodge tax returns.
  
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  You are not considered an employee of your own business and therefore don’t pay payroll tax, superannuation or workers’ compensation on income you draw from the business.
  
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  Relatively easy to change business structure if your business grows or if you wish to wind things up.
  

Disadvantages

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  Unlimited liability which means all your personal assets are at risk if things go wrong.
  
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  Little opportunity for tax planning – you can’t split business profits or losses with family members and you are personally liable to pay tax on all the income from the business.
  

2. 
   What is the procedure to become a sole trader in Uzbekistan?
   

In accordance with the law, a citizen is entitled to engage in business activities from the moment of state registration as an individual entrepreneur. With that, the individual entrepreneurshipis implementation of individual entrepreneurial activity without establishing a legal entity (sole proprietorship). Individual businessesare performed by individual entrepreneursthemselves, without the right to hire workers, on the basis of the property belonging to him/her by right of ownership, and also by other proprietary rights, allowing possession and (or) use of the property .

At the same time, the law allows the implementation of individual entrepreneurship not only by one person, but also together with other individuals. Thus, individuals may carry out joint entrepreneurial activities without forming a legal entity in the following forms:

a) family business, carried out on the basis of common property of spouses;

b) simple partnership;

c) dekhkan farm unincorporated.

3. 
   What is small business? Is it popular in Uzbekistan? Why/Why not?
   

In recent years, a number of events were held in Uzbekistan to promote the development of small business, because it plays the key role in the development of the economy as a whole.

A novice entrepreneur can open his business either as an individual or as a legal entity. Currently in Uzbekistan there are a number of organizational and legal forms of entrepreneurship:

1. An individual entrepreneur is a form of doing business without forming a legal entity.

a) Family entrepreneurship (business by spouses);

b) simple partnership;

c) Dekhkan farm (farm).

2. Private entrepreneurship is a legal form with the formation of a legal entity.

3. A joint stock company is a form of business that is created on the basis of voluntary contributions of the founders (shareholders).

Small business benefits

1) Low starting costs and full control over the company.

Having even a small start-up capital, there is every chance of opening a small but successful enterprise. In addition, the owner of a small company can apply one-man solutions in management, without wasting time on unnecessary bureaucracy.

2) Easy to manage. Due to its size, small business is much easier to manage and control all processes.

3) Mobility and flexibility. Small business quite easily adjusts to the requirements of the market, the necessary adjustments are made fairly quickly. In addition, in the case of force majeure, changing the location of a small store is much easier than transferring an entire industrial complex.

4) Convenient to promote: a large number of low-budget advertising media is available.

Disadvantages

1) Limited capital. Insufficient amount of working capital can restrain the development of small firms. This affects both the production level and product innovation.

2) Difficulties in competition with large firms. Small business can often be at a disadvantage, since larger competitors have a “promoted” name, which attracts customers, and great leverage.

3) High crisis risks. During an economic downturn or even more so a crisis, it is much more difficult for small enterprises to survive than large ones. Large companies can get from the state of various easing, for example, tax cuts, or a delay in the payment of the loan. Small business is much more difficult to do.

Currently, the Republic of Uzbekistan pays considerable attention to the development of small business (business). Measures are being taken to radically simplify and increase the transparency of licenses and permits, and the provision of public services. Strengthened measures of legal protection of business entities, their financial support. As a result, in January-September 2018, 38.1 thousand new small enterprises and microfirms (without dekhkan and farm enterprises) were created again, which is 23.6 % more than in the same period of 2017. The largest number of small enterprises and microfirms were created in the sphere of trade (23.1 %), industries (22.4 %), construction (12.9 %), agriculture, forestry and fisheries (11.8 %), accommodation services and nutrition (7.6 %), transportation and storage (4.0 %).