Under the following conditions, a sole trader can be established:
1. The business that requires less capital, like hair cutting saloon (barber).
2. The scope of business is less here.
3. This area requires self proficiency and also direct contact with the customers.
4. This business requires personal attention and managerial proficiency for better operation and production.
5. The business which requires the personal care of the customers like a beauty parlour.
6. The business which involves limited goods and services.
