Please define me diffrence between proprietorship & pvt. ltd.?

proprietorship
An unincorporated business that is owned and operated by only one person who has complete liability for all assets, and complete rights to all profits.

Pvt. Ltd. company:
On the other hand the Pvt. ltd is owned by more than 2 persons and between close circle with limited liability.

The main difference is, the owner is personally responsible for all liabilities in Proprietary concern. Where as the Pvt. Ltd company liability is limited up to the assets of the company and the individual share holders are not liable for any liability. That is why almost all the chit fund companies are Pvt. Ltd.

one is made with pickled baloney on rye and the other has meatballs.

a proprietorship or so called single proprietorship is a business owned and run by a single individual or family.

a pvt ltd is a form of partnership where the owners and operators are two or more individuals. in this case, it is a private partnership and not open to anyone else. moreover, as to the ltd, or limited, meaning a limited partnership wherein they are not liable for anything more than their capital when it comes to liquidation.

In India, normally businesses are run through proprietorship concerns, partnership concerns and public and private limited companies.

Proprietorship concern is the organisation which is owned by an individual.

Partnership concern is the association of more than one person and the capital invested and the profit sharing are decided as per mutually agreed terms. It is advisable that the partnership deed registered with Registrar of Partnership Firms.

Private limited company is the commonly used form of the business where the operations are relatively higher and involves risk. A private limited company can be formed by a minimum of two persons and the maximum of 50 persons. Each member shall have the liability limited to their holding in the company. The profit in the form of dividend will be distributed commensurate with the capital invested in the form of equity.

Public limited company is formed when the operations are quite large and involve substantial risk. A public limited company can be formed with a minimum of 7 persons. The maximum number in this case is unlimited. Here again each member will have the liability limited to the extent of their holding in the company. The profit is also shared in the form of dividend in accordance with the investment made in the equity of the company.

Proprietorship can start business/profession immediately and choose any name of choice of proprietor. Any business can be started which is legally permitted.

There are some procedures to be followed before making pvt.ltd. Name approval, registration, articles of association, memorandum etc. Pvt.ltd. can start business as allowed in A/O/A.

At appropriate time, proprietorship can be converted in Pvt.ltd.