Both sole proprietorship firm and private limited company are unique business structures with their own benefits. The selection of form of business is a wise decision.
Sole proprietorship firm is a simplest form of business. It is easy to start and has a less maintenance cost. It will be more suitable to following type of business.
- Sole ownership
- Less capital requirement
- No interference
- Small scale business
- Unorganised business
Private Limited Company is exactly opposite to it. It is considered as best business structure now days. It will best suitable to following business.
- More capital requirement
- Need of funds from banks and financial institutions
- Well organised structure
- Multi-level business
- Long span of business
For more details read our blog How to choose the right business structure for your business?