A Sole Proprietorship by definition is a business that is run and owned by one person, although it may have numerous employees.

There is normally no legal distinction between the owner and the business and said person is responsible for all debts as well as profits of the company.

Of the more than 7 million registered business in Brazil, a staggering 99% are considered sole proprietorships and therefore fall under the Estatuto Nacional da Microempresa e Empresa de Pequeno Porte (National Statute of the Micro and Small Businesses).