Hi Seniors,
This is mohan working in small firm getting turn over upto 3.5 Crore.
now we are in confusion to designate our Owner whether it is proprietor or Director . So please let me know how to designate him....
From India, Tiruchchirappalli
4This is mohan working in small firm getting turn over upto 3.5 Crore.
now we are in confusion to designate our Owner whether it is proprietor or Director . So please let me know how to designate him....
From India, Tiruchchirappalli
Hi Dear Mohan That depend on the Registration of the Company, whether that is a proprietorship or Pvt ltd. After that you can use any word among proprietor or Director
Whilst it is common for the terms 'Proprietor' and 'Director' to be used inter-changeably, technically they are statutory terms and their use is strictly governed by the Companies Act and other similar legislation.
A Proprietor is a person who owns a Proprietorship. This is the simplest and easiest form of business registration. In this case, there can only be one owner. Usually, they will have a trading name on the basis of which they will acquire the business PAN card, service or sales tax registration etc...
A Director is a person who controls a company - whether private or public limited. They have signed a Memorandum of Directorship, have stringent statutory obligations placed upon them. And, remember, a company MUST have at least 2 Directors.
So, the easiest test re: whether to call your boss a Director or Proprietor is this: If his business is a Private Limited company, then he/she is a Director. If it is a single-person owned entity with a trading name attached, then he/she is a Proprietor.
And, to bring further clarity, if your boss is in a registered partnership, and is performing most of the business' management work, then he/she is a Managing Partner.
Hope this helps you.
Take care!
From India, Gurgaon
A Proprietor is a person who owns a Proprietorship. This is the simplest and easiest form of business registration. In this case, there can only be one owner. Usually, they will have a trading name on the basis of which they will acquire the business PAN card, service or sales tax registration etc...
A Director is a person who controls a company - whether private or public limited. They have signed a Memorandum of Directorship, have stringent statutory obligations placed upon them. And, remember, a company MUST have at least 2 Directors.
So, the easiest test re: whether to call your boss a Director or Proprietor is this: If his business is a Private Limited company, then he/she is a Director. If it is a single-person owned entity with a trading name attached, then he/she is a Proprietor.
And, to bring further clarity, if your boss is in a registered partnership, and is performing most of the business' management work, then he/she is a Managing Partner.
Hope this helps you.
Take care!
From India, Gurgaon
- Designation 'Director' has a specific statutory meaning in case of company, which is very well explained in earlier post. There are many legal obligations applicable to Director of company.
- But in case of Sole Proprietor Firm or Partnership Firm Proprietor / Partner can be designated as Director or CEO or Manager etc. There is no harm or any legal complication in giving any designation to Proprietor / Partner.
From India, Pune
I have never seen memorandum of directorship Can u post a copy ? And tell which sec of co act it comes under.
From India, Mumbai
From India, Mumbai
hello manohar
this depends upon the registration of the company if the company is is registered on the trust name u name his as director of designation and also in which he is looking after as he looking after financee example u came him as xyz
designation director finance/managing director of the company if the family members includes
but the the properitor is only related the industries less than 1 crore
with regards
From India, Chennai
this depends upon the registration of the company if the company is is registered on the trust name u name his as director of designation and also in which he is looking after as he looking after financee example u came him as xyz
designation director finance/managing director of the company if the family members includes
but the the properitor is only related the industries less than 1 crore
with regards
From India, Chennai
Dear Mohan,
'Director' is one who directs, regulate, supervise or order to his/her subordinate or other associated member for effective management practices in the organisation/Institution, whereas 'Proprietor' hold the legal title of ownership of organisation. Owner may be Director and or have right to appoint to other as Director/s. e.g.: A leading Brand of telecommunication Bharti Enterprises (Airtel) Owner is Sunil Bharti Mittal and Vineet Taneja is Director of operation Incharge for telecom services. It may be possible that the company appoint different director for its different project.
Best Regards:
Vikas Ranjan
From India, Bangalore
'Director' is one who directs, regulate, supervise or order to his/her subordinate or other associated member for effective management practices in the organisation/Institution, whereas 'Proprietor' hold the legal title of ownership of organisation. Owner may be Director and or have right to appoint to other as Director/s. e.g.: A leading Brand of telecommunication Bharti Enterprises (Airtel) Owner is Sunil Bharti Mittal and Vineet Taneja is Director of operation Incharge for telecom services. It may be possible that the company appoint different director for its different project.
Best Regards:
Vikas Ranjan
From India, Bangalore
Dear Questioner, Although Director will be in any Pvt or public registered company and Prop. is only in proprietorship firm run by single person.
Rest you have good turn over, want to designate something feel good, you can say President and so on...it is upto you, no body will bothers, but statutory not advisable. Why do not you consult any CA ? best option.
regards
dawar
From India, Pune
Rest you have good turn over, want to designate something feel good, you can say President and so on...it is upto you, no body will bothers, but statutory not advisable. Why do not you consult any CA ? best option.
regards
dawar
From India, Pune
I want just to share my thought with Hussain, I agree with Hussain, Director may not be answerable but it is not completely true, in case Director has made any wrog deed and it is proved, it is against Company Act, Director is always responsible and answerable. Yes , if company goes in losses due to reasons other than misdeed of Director then he may not be answerable and in case of Prop make losses, it comes direct liability of prop. In case of Director, it come on Company, but any how, either company close or Director, it injure reputation of Director, may not be legally but morally and publically. Check the Satyam a recent case.
Your comments are welcome
dawar
From India, Pune
Your comments are welcome
dawar
From India, Pune
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