In the case of a sole proprietorship there is no distinction between the personal and business assets. As a result, all assets and liabilities pertaining to the proprietorship constitute the income and expenses of the owner. Creditors of a sole proprietorship have recourse directly on the personal property of the owner, whereas private creditors can also recover their claims from the assets of the business.
The owner of a sole proprietorship requires a business license to do business on the BES islands. No directors license is required to establish and operate a sole proprietorship. A business license for a sole proprietorship can be applied for at the Executive Council (Bestuurscollege).