Company/firm
This query is : Resolved
Ajay Mishra
(Querist)
12 May 2012
what is the difference between sole proprietor firm and company?
12 May 2012
In a proprietorship the owner is an individual. He is the sole owner of the business.
In a company the owners are shareholders. A company is registered and governed by the Companies Act, 1956. A company has to comply with a lot of formalities.
In a company the owners are shareholders. A company is registered and governed by the Companies Act, 1956. A company has to comply with a lot of formalities.
Ajay Mishra
(Expert)
12 May 2012
Hi
Sole Proprietor Firm:
A sole proprietorship is a business operated by one individual; the business is considered part of the individual, not a separate entity. The business profits and losses are included on the individual's personal tax return, and the individual retains personal liability for the business debts and lawsuits.
Company:
A company can be defined as an "artificial person", invisible, intangible, created by or under Law, with a discrete legal entity, perpetual succession and a common seal. It is not affected by the death, insanity or insolvency of an individual member. The Companies Act, 1956 deal with registration and operation of company in India.
Regards
Sole Proprietor Firm:
A sole proprietorship is a business operated by one individual; the business is considered part of the individual, not a separate entity. The business profits and losses are included on the individual's personal tax return, and the individual retains personal liability for the business debts and lawsuits.
Company:
A company can be defined as an "artificial person", invisible, intangible, created by or under Law, with a discrete legal entity, perpetual succession and a common seal. It is not affected by the death, insanity or insolvency of an individual member. The Companies Act, 1956 deal with registration and operation of company in India.
Regards
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