Sole proprietorship vs private limited #ecommerce #shorts #trending

Sole Proprietorship or Private Limited 📌👇

🔹 Ownership: Sole Proprietorship is for solo owners, while Private Limited has directors and shares.
🔹 Legal Requirements: Private Limited companies follow the Companies Act 2013, while Sole Proprietorships need minimal legal setup.
🔹 Name Choice: A Proprietorship can have any name, but Private Limited names need MCA approval.
🔹 Profits: In a Proprietorship, all profits go to the owner. In Private Limited, profits are divided among shareholders.
🔹 Capital & Resources: Proprietorship suits lower capital and smaller teams, while Private Limited works for businesses with more resources and employees.
🔹 Tax & Liability: Proprietorship taxes are personal, impacting personal assets. Private Limited offers tax benefits and protects personal assets.
🔹 Funding & Growth: Looking to raise funds and expand? Private Limited is ideal.
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