a) Unlimited Liability: -In the firm you have unlimited business liability. Example, if you take the loan from bank on firm name or if you liable to pay any liability to creditors then bank or creditor can claim your personal assets also legally to repay the debt.
b) Can’t include the partners:-Sole Proprietorship firm can’t include the partners in future.
c) Issues in raising the funds :-You can’t raise the funds from Angel Investor or VC Firms like selling your equity or share to another person and raise the money from that person.
d) Registered Legal Existence:-There is no proper registration with the government so it may not be recognized unlike a private limited company.
e) FDI is not possible in proprietorship firm, Only an Indian resident can become proprietor.